The New Energy Vehicle (NEV) market is expected to see steady and robust growth in China. The sale of the NEVs is projected to grow more than 40 percent every year for the next five years.
According to a Reuters report, a senior official at the China Association of Automobile Manufacturers (CAAM) shared this information earlier today (18th June 2021). Fu Bingfeng, executive vice chairman of CAAM, made the statement regarding the growth at a conference in Shanghai. In this presentation, the official stated that CAAM has estimated that sales NEVs will hit 1.9 million units this year and 2.7 million units in 2022. This includes various NEV types like the battery electric, plug in hybrid, and even hydrogen fuel cell vehicles.
Notably, major NEV makers like Tesla, NIO, Xpeng, and BYD, are also expanding manufacturing capacities in the region. This arrives after the carmakers were incentivized by the government, which is promoting greener vehicles to lower pollution levels. For those unaware, China is planning on extending its tax exemption on NEV purchases beyond 2022 to support the development of this segment.
This news was further backed by Wan Gang, a high ranking government industrial policy adviser who is also known as China’s “father of EV” by local media. Furthermore, the shares of the country’s NEV related firms have also risen after this conference. These include major battery maker CATL that saw a 3.7 percent gain, along with Guangzhou Tinci Materials Technology Co Ltd and BYD that saw a surge between 2.9 percent and 10 percent, among others.
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