China’s car sales maintained their growth pace in 2024 as sales of electric vehicles and plug-in hybrids in the world’s largest auto market hit a record high amid a brutal price war and with subsidised trade-ins for greener vehicles driving purchases.
The outstanding growth in China in a largely stalling global EV landscape spelled good fortune for local winners such as BYD, Geely and Xiaomi and expedited an industry shakeout in a competitive market.
It also benefited Tesla, whose China sales hit a record high in 2024, bucking an overall decline in the US EV giant’s global sales.
Other foreign automakers such as General Motors, Toyota and Volkswagen continued to lose ground to local rivals, with many of them struggling to sustain effective capacity usage at their Chinese plants.
Passenger vehicle sales were up 5.3% to 23.1 million units in 2024 for the fourth straight year of growth, in line with the 2023 pace, according to the China Passenger Car Association .
Sales of EVs and plug-in hybrids, known collectively as new energy vehicles (NEVs), rose 40.7% to make up 47.2% of total car sales last year, closing in on a 50% milestone, buoyed by a programme likened to the 2009 US “cash-for-clunkers” stimulus.
More than 6.6 million cars sold last year benefited from government subsidies of up to $2,800 for NEV purchases versus as much as $2,000 for more fuel-efficient combustion engine vehicles. Over 60% of the subsidised purchases went to NEVs, per official data.
