BAIC BJEV posts 21.57% YoY growth in H1 2019 sales, underperforming overall market’s average

Shanghai (Gasgoo)- BAIC BJEV's vehicles sales in June reached 26,072 units, tremendously surging 438.12% from a year ago. For the first half of the year, sales of the Beijing-based EV manufacturer totaled 65,159 units, a year-on-year increase of 21.57%, BAIC BluePark New Energy Technology Co.,Ltd, the parent company of BAIC BJEV, said on July 8.

(Photo source: BAIC BJEV's WeChat account)

The EV maker output 5,986 vehicles last month, achieving a magnificent growth compared with 655 vehicles produced in the year-ago period. However, its year-to-date outputs still plunged 71.75% to 11,222 units.

Wholesale volume of China's locally-produced new energy PVs (NEPVs) shot up 98.7% over the previous year to around 134,000 units, said the China Passenger Car Association (CPCA). Besides, the national NEPV sales for the first six months aggregated 577,000 units, soaring 65.9% from a year ago. Thus, in terms of the growth in year-to-date sales, BAIC BJEV didn't outperform the overall NEV market.

A new tougher policy for subsidizing the purchase of NEVs has been officially put into effect after three-month grace period ending June 26. From then on, China's central government would whittle down subsidies on NEVs, while the subsidies offered by local governments would be entirely scrapped.

There were also some policy upgrades that are favorable to popularize NEVs. Effectively July 1, 2019, NEVs purchased from January 1, 2018 to December 31, 2020 shall be exempt from vehicle purchase tax, according to an announcement jointly issued by China's Ministry of Finance and the State Taxation Administration on June 28.

Moreover, Chinese authorities on June 6 announced that local governments in China were not allowed to impose traffic and purchase restrictions on new energy vehicles (NEVs). Relevant restriction policies that have been implemented should be cancelled from then on.