China is poised to uphold its position as the global leader in new energy vehicle (NEV) sales, with experts predicting the nation will account for 60 percent of the projected 20 million NEV sales worldwide in 2024. As part of its green push, China is not only expected to remain a key market for NEVs but also accelerate its role as the global hub for NEV batteries and related supplies, driving investment, consumption, and economic growth.
Projections from China EV100, an electric vehicle industry think tank, indicate that China’s NEV sales value will surpass 2 trillion yuan ($279 billion) in 2024, contributing significantly to the overall global NEV market. Furthermore, China is anticipated to produce over 50 percent of the global output of NEV batteries and materials in the same year, solidifying its position as a major player in the industry.
Shi Jianhua, Deputy Secretary-General of China EV100, emphasized China’s market potential and technological advancements as crucial factors propelling global industry development. He anticipated that continuous technological breakthroughs would lead to the emergence of new Chinese NEV brands, with one or two potentially entering the global Top 10 list in terms of sales volume this year, further boosting the market share of Chinese firms to over 40 percent.
The rapid development of the NEV sector is expected to have far-reaching impacts on various sectors, including infrastructure, automotive parts, smart manufacturing, and intelligent automotive solutions, injecting momentum into China’s economic growth. Additionally, the NEV industry is poised to contribute significantly to China’s low-carbon transition, with an estimated 30 million NEVs in use by the end of 2024, and pure electric vehicles accounting for approximately 80 percent of that figure.
Shi highlighted China’s leadership in global production and technological advancements in batteries, motors, and intelligent cabins over the past year. Notably, the energy density of battery cells in mass production reached 300 watt-hours per kilogram, supporting an average range of over 460 kilometers per charge for an electric vehicle.
According to China EV100 data from September, global NEV sales reached approximately 9.75 million units, with China contributing more than 60 percent of the total. Chinese automaker BYD emerged as the world’s largest in terms of new energy passenger vehicle sales. Chinese companies secured five positions in the global Top 10 list, collectively holding a 38.9 percent market share.
Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, acknowledged that NEV manufacturers are actively expanding battery production to lower costs and ensure supply chain stability. While the industry faces temporary challenges such as excess capacity and structural imbalances, comprehensive government strategies are deemed necessary to guide orderly development. As China continues to drive advancements in the NEV sector, its influence on the global market is set to grow further in 2024.