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
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