China’s NEV penetration is likely to exceed 15% in 2022

China’s new energy vehicle (NEV) penetration will reach 13.4% at the end of 2021 and could exceed 15% this year, according to industry sources.

Despite the challenges posed by the COVID-19 pandemic, rising raw material prices and a shortage of semiconductor components, NEV sales in China increased last year, with over 500,000 NEVs sold in December. rice field.

Currently, there are two major types of NEV in China. Battery-powered electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). According to statistics from the China Academy of Information and Communication (CAICT), total sales of NEVs in China in 2021, including 2.92 million BEVs, increased by nearly 160% year-on-year to 3.52 million units.

The average monthly BEV sales in the first half of 2021 were 100,000-200,000 units, but increased to 448,000 units at the end of the year. Analysts said BEVs are the main driver of growth in China’s NEV penetration.

Although demand for PHEVs is significantly lower than that for BEVs, the average monthly PHEV sales in Japan also surged from 20,000 to 40,000 units in the first half of 2021 to about 80,000 units at the end of December.

Towards 2022, auto parts maker sources expect demand for NEVs to remain strong, thanks to oil price volatility due to the war between Russia and Ukraine. If China’s NEV market continues to expand at its current pace, NEV penetration in China will reach 2022, recognizing that the blockade of COVID-19 and the shortage of automotive semiconductors in China remain key variables. Sources say it can reach 18%. China’s NEV penetration is likely to exceed 15% in 2022

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