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China New Energy Vehicle Sales Soar 121% Amid Chip Shortage

NEV sales shot up to 450,000 units in November, but overall auto sales dropped 9% from a year earlier, industry data showed on Friday


Domestic new energy vehicle companies such as BYD, Li Auto, Xpeng, Evergrande and Nio are expected to gain from the reduction in vehicle loan rates.
An Xpeng P5 electric vehicle at the Auto Shanghai show in April last year. Auto loan rates have been cut in half in the past two months, from 6% to about 3%. Photo: Reuters.

 

China’s sales of new energy vehicles (NEV) are showing strong momentum – growing 121% to 450,000 units in November, as the government promotes greener vehicles to cut pollution.

These include battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles.

But overall vehicle sales dropped 9% last month from a year earlier, industry data showed on Friday, for the seventh consecutive monthly fall as a prolonged global shortage of semiconductors disrupts production.

Overall sales in the world’s biggest car market stood at 2.52 million vehicles in November, data from the China Association of Automobile Manufacturers (CAAM) showed.

Nonetheless, November sales beat the association’s expectations, said Chen Shihua, CAAM’s deputy secretary-general, as companies benefited from falling prices of raw materials.

An easing of power shortages that halted output at many factories in prior months also promoted output.

The shortage of semiconductors will continue to pressure the automotive industry in December, Chen added.

 

  • Reuters, with George Russell

 

EV sales progression in China

Source: Jefferies

 

SEE MORE:

 

Chip Shortage and Power Crunch Hit China Auto Sales

‘Darkest Moments’ of Chip Shortage Have Passed: Securities Times

 

 

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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