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China's Plug-In Vehicle Market Shows Robust Growth in 2023
In a significant shift towards sustainable transportation, China's plug-in vehicle market experienced a surge in 2023. With new energy vehicles (NEVs)—including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs)—accounting for an increasing share of the market, the country is set to break new ground in electric mobility.
June 2023 was a particularly noteworthy month, with over 700,000 electric vehicles (EVs) sold, marking a 28% year-on-year increase. EVs took a 38% share of the Chinese new-car market, and BEVs alone accounted for 25% of registrations, with the remaining 13% consisting of PHEVs.
Several models performed exceptionally well during this period. The Tesla Model Y was the most popular model in China's entire automotive market, with 51,471 registrations. The BYD Song claimed second place, scoring 43,288 registrations, while the BYD Qin Plus benefitted from a recent refresh and price cut, reaching 42,086 registrations. The Li Auto L7 had a record 13,107 registrations, the Wuling Bingo achieved 19,740 sales, and the ORA Good Cat recorded 7,658 registrations, its best score in a year.
Domestic players like BYD and SAIC, alongside major foreign participants such as Tesla and VW, shaped the landscape of the plug-in vehicle market. The BYD Seagull recorded 16,560 registrations in its third month on the market, the BYD Dolphin scored 26,408 registrations, and the BYD Yuan Plus performed as well domestically as it did abroad, with 30,012 registrations. The Leapmotor C11 midsize SUV achieved another record performance with 8,934 registrations, likely due to the introduction of a range-extended version.
The Wey premium brand delivered 5,506 units of its new Blue Mountain flagship SUV in only its third month on the market, while the Bestune NAT people carrier reached 5,387 registrations, its best score in 18 months. The GAC Aion S and Y finished in eighth and ninth place, respectively, in June 2023.
By the end of 2023, plug-in vehicle sales in China are expected to show strong growth, with NEVs accounting for nearly 1.2 million sales in December alone, including about 764,000 BEVs and 363,000 PHEVs. Plug-in vehicles are projected to near 48% of all new car sales, with sustained double-digit growth rates for the electric and plug-in hybrid vehicle segments.
While the end-of-2023 outlook for China's plug-in vehicle market is promising, some industry concerns about demand softening and competitive pressures have emerged. Despite these concerns, the robust expansion of the plug-in vehicle market is expected to continue, supported by strong consumer uptake and government incentives.
Finance continues to play a significant role in China's plug-in vehicle market growth, as the increasing demand for electric vehicles (EVs) brings new opportunities for technology investment in the vehicle manufacturing sector. The sports sector could also see potential integration with the rise of the plug-in vehicle market, as enhanced performance and efficiency are key features of the new energy vehicles (NEVs) being released.
