China's NEV output, sales report steady growth in May

BEIJING -- China's new energy vehicle (NEV) output and sales posted double-digit year-on-year growth in May, industry data showed on Wednesday.

NEV output rose 22.4 percent year-on-year to 1.554 million units, while sales increased 14.4 percent to 1.496 million units, according to the China Association of Automobile Manufacturers (CAAM).

NEVs accounted for 56.9 percent of total new car sales in May, further climbing from the previous month.

Overall, automobile output and sales in May stood at 2.616 million and 2.629 million units, expanding on a monthly basis but falling slightly year-on-year, with the decline narrowing further.

In the first five months, auto output and sales totaled 12.235 million and 12.207 million units, with NEV output and sales reaching 5.841 million and 5.802 million units, up 2.5 percent and 3.5 percent year-on-year.

Industry insiders noted that the domestic market has seen surging NEV demand in contrast to cooler fuel-car sales. Chen Shihua, deputy secretary-general of CAAM, attributed the trend to high oil prices that raise the operating costs of fuel cars and highlight NEVs' economic appeal.

Domestic automakers' deep investment in innovation has driven rapid iteration of new NEV models to meet diverse consumer needs, he added.

Vehicle exports continued to surge. In May, China exported 930,000 vehicles, up 68.7 percent year-on-year, including 446,000 NEVs, which more than doubled from a year earlier.

In the first five months, vehicle exports reached 4.059 million units, up 63 percent, with NEV exports at 1.833 million units, also more than doubling.

The strong overseas performance of China's NEVs reflects the upgrading and rising comprehensive strength of China's auto industry, underpinned by policy guidance and industrial synergy, Chen said.

"China has a complete and efficient NEV supply chain with prominent scale effects and strong risk-resistance capability," he said. "At the same time, smart features such as in-car systems, autonomous driving, and cabin interaction are iterating rapidly, continuously adapting to overseas user needs and boosting product competitiveness."