In China, the sales of all types of electric vehicles (EVs) saw a significant rise of over 40% last year, while the sales of gasoline-powered cars declined, according to industry data released on Monday. A total of 31.4 million vehicles, including buses and trucks, were sold in China in 2024, marking a 4.5% increase compared to the previous year, as reported by the China Association of Automobile Manufacturers. The growth in sales outpaced the production increase, which stood at 3.7%.
China’s exports of passenger cars surged by nearly 20% in 2024, reaching almost 5 million vehicles, which contributed to a notable increase in the country’s overall exports. Among these, exports of “new energy vehicles” (NEVs), which include pure battery EVs, fuel-cell cars, and plug-in hybrids (EVs with a small gasoline engine for backup), totaled 1.28 million, reflecting a 6.7% rise compared to 2023.
The growing presence of Chinese electric vehicle (EV) manufacturers in international markets has raised concerns among automakers in the U.S. and Europe. In response, the U.S. imposed a 100% tariff on electric cars made in China last year, while the European Union also introduced new tariffs on Chinese EV makers, accusing the industry of benefiting from unfair government subsidies.
In December, sales of passenger cars in China rose by 13.6%, partly driven by trade-in rebates, pushing the total sales of passenger cars for the year up by 3.1% to 22.6 million units. Plug-in hybrids experienced the fastest growth in 2024, attracting a new wave of electric vehicle buyers who are either hesitant about fully electric vehicles (EVs) or prefer the longer range that hybrids offer.
The rapid expansion of EV sales in China stands in stark contrast to the slower growth seen in the United States and Europe. Sales of traditional gasoline and diesel vehicles dropped by 17% in 2024, from 14 million to 11.6 million, making up 51% of total new car sales.
This decline in demand for fuel-powered cars has been a significant setback for foreign automakers like Volkswagen AG and Nissan Motor Corp., which have long relied on strong demand in China to boost their profits. In response, they are racing to develop electric vehicles tailored for the Chinese market. Honda and Nissan have even announced plans to explore a merger to better compete with China’s growing EV manufacturers.
