CPCA’s secretary general says China’s NEPV penetration rate expected to top 20% in 2022

Shanghai (Gasgoo)- The penetration rate of new energy passenger vehicles (NEPVs) in China is expected to surpass 20% in 2022, Cui Dongshu, secretary general of the CPCA (China Passenger Car Association), said on Nov. 3.

BYD Han EV; photo credit: BYD

China's NEPV sales in 2021 are likely to surge about 150% over the previous year and will return to a high rate of growth in 2022, Mr. Cui added.

China has been recording exploding sales of NEPVs so far this year, especially the NEPV penetration rate even top 20% in September. Based on the robust rising movement, the country's annual NEPV penetration rate is anticipated to exceed 15% this year, said Mr. Cui.

Cui Dongshu noted the sales downturn for 2019 and 2020 will lay the groundwork for a high growth rate for this year’s auto market. Overall, China's auto market posted a relatively stable sales growth this year, while NEV sales grew at a pretty high growth.

In 2022, China's NEPV penetration rate is likely to further grow if the increase in the sales of mini-sized all-electric vehicles remains high and many PHEV models under Chinese indigenous brands go on sale on schedule.

However, the positive rising prospect was made by ruling out the impact of such unpredictable factors as the resurgence of pandemic and resource shortage.

Mr. Cui still said China's current policies, products, and industrial form all serve as tailwinds for the development of NEV market. The progress of marketization for NEV industry will be further boosted by some policies, such as stopping awarding free "green-coloured" license plates to PHEVs in Shanghai. Besides, legacy OEMs is bound to increase the proportion of NEV products under the pressure brought by fast-developing startups and China's Dual Credit Policy.