In recent days, a foreign blogger's astonished commentary about the prevalence of electric vehicles in Chinese cities has caught the attention of the internetThe blogger mentioned that upon arriving in China, they noticed that the majority of cars and buses on the streets were powered by electricity, resulting in a surprisingly silent urban environmentThis observation was corroborated by the latest statistics released by the Ministry of Public Security, indicating that by the end of June this year, there were approximately 440 million motor vehicles in the country, among which around 34.5 million were traditional cars, while nearly 24.72 million were new energy vehicles (NEVs). In just the first half of this year, the registration of new energy vehicles surged by 439,700 units, marking a remarkable year-on-year growth of 39.41% and setting a record high.

What was once a novel concept just a decade ago, the idea of new energy vehicles, is now a commonplace reality in China, with over 20 million electric cars cruising the roads.

The rise in market share for these vehicles has been notable

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According to recent data released by the China Automobile Industry Association, in June alone, production and sales of new energy vehicles reached 1.003 million and 1.049 million units, respectively, reflecting year-over-year increases of 28.1% and 30.1%. With this surge, the market share of these vehicles reached an impressive 41.1%. The Deputy Secretary-General of the China Automobile Industry Association, Chen Shihua, noted that the market share for new energy passenger cars in June had even soared to 45%.

During the first half of this year, the total production and sales of automobiles in China reached approximately 13.891 million and 14.047 million units, marking a year-on-year growth of 4.9% and 6.1%. Notably, new energy vehicle production and sales totaled around 4.929 million and 4.944 million units, respectively, resulting in a yearly growth of 30.1% and 32%, and thus lifting their overall market share to 35.2%.

Wu Songquan, a senior expert at the China Automotive Technology and Research Center, expressed that the rapid growth in both production volume and the number of registered new energy vehicles indicates a significant improvement in vehicle quality, leading to greater acceptance and recognition among users

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This uptick in new energy vehicle sales is not only spurring the development of the automotive supply chain but is also having a substantial positive impact on the economyMoreover, such trends significantly contribute to environmental protection and the reduction of fossil energy consumption.

Looking ahead to the next half of the year, various beneficial policies are expected to be implementedPrograms promoting vehicle trade-in for new models and initiatives encouraging the adoption of electric vehicles in rural areas are anticipated to continue expandingThe introduction of a multitude of new products by car manufacturers could further unleash consumer demand in the automotive market, aiding in stable growth throughout the industryWu predicts that with the introduction of many new models in the latter half of the year, the ongoing implementation of trade-in policies, and substantial governmental support for developing new productive forces, the new energy vehicle market is likely to expand further

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Overall, this year, the production and sales of new energy vehicles are expected to surpass the remarkable figure of 11.5 million.

However, in light of ongoing challenges, the Secretary-General of the National Passenger Car Market Information Joint Committee, Cui Dongshu, indicated that the substantial promotions seen in the first half of the year disrupted the normal pricing trends in the automotive marketA period of adjustment for final prices will be necessaryThe aggressive promotions in the second quarter have also led to a consumption overhang for car buyers in the second half of the yearHe believes the effect of price-driven sales in July might diminishTherefore, car manufacturers will likely optimize their market expectations, product structures, and the rhythm of new product launches based on their first-half performance, possibly entering a consolidation period.

The current dilemma of insufficient consumer confidence in the domestic market remains prominent, exacerbated by the growing severity of international trade protectionism, as Chen Shihua pointed out

This heightened competition is putting continuous pressure on the operations of various automotive enterprises, creating a substantial burden on the entire industry's performanceHence, it is essential to continue uplifting consumer confidence and improving the market environment to ensure a stable industry operation.

Significant advancements have also been made by domestic brands in the burgeoning electric vehicle marketFor instance, on July 4th, BYD celebrated the opening of its factory in Rayong, Thailand, marking the production of its 8 millionth new energy vehicle—the first automotive manufacturer globally to achieve this milestoneThis accomplishment came merely three years after BYD produced its 1 millionth new energy vehicle.

With the overall automotive market maintaining a stable growth trajectory, the new energy vehicle sector has been thrivingAnalysis of industry data shows a noticeable shift from traditional fuel-powered vehicles to electric alternatives, illustrating an ongoing transition where new energy vehicles are gradually replacing their gasoline counterparts

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This trend is evident in the mid-year reports from major automotive manufacturers.

Recent data indicates that in June alone, BYD sold 341,700 electric vehicles, accumulating a total of 1.613 million units sold in the first half of the year, equating to a year-on-year growth of 28.46%.

Moreover, several emerging automakers have also shown impressive performance this yearFor instance, Seres reported total sales of 200,900 units in the first half of the year, reflecting an extraordinary growth of 348.55% year-on-yearOut of this, Seres sold 182,600 electric vehicles, which led to a staggering 608.83% growth over the previous year.

NIO has also progressively regained its footingIn June, the company delivered 21,200 new vehicles, reflecting a 98% increase year-on-yearIn the second quarter, the company delivered 57,400 new vehicles, marking a year-on-year growth of 143.9%. By the end of the first half of the year, NIO had delivered a total of 87,400 vehicles, a 60.2% increase compared to the same time last year.

Furthermore, Xiaomi's automotive branch is off to a strong start

June saw Xiaomi’s SU7 surpassing 10,000 units in delivery, with expectations to maintain or exceed this number in July.

The consistent growth of the new energy vehicle market has propelled the market share of Chinese brands to rise steadilyAccording to statistics from the China Automobile Association, by the end of June this year, the cumulative production and sales of domestic new energy vehicles surpassed 30 million units; furthermore, the market share of Chinese brand passenger vehicles has exceeded 60%, showcasing a significant upward trend.

Chen further explained that the continuous rise in the market share of domestic brand passenger vehicles can be attributed to two primary factors: the accelerated growth in new energy vehicle sales and the swift increase in car exports, wherein domestic brands constitute a dominant portion of the export marketAdditionally, domestic brands have shown remarkable agility in their transformations, particularly in the domains of electrification and intelligence, outpacing their joint venture counterparts significantly.

Cui Dongshu highlighted that the significant growth of domestic passenger vehicles is primarily due to their increased foothold in the new energy vehicle and export markets, alongside the impressive performance of leading traditional carmakers transitioning to new models

Companies like BYD, Geely, and Changan are seeing considerable improvements in their market shares.

However, the issue of charging infrastructure remains a crucial barrier to the widespread adoption of electric vehiclesExperts view charging accessibility as the "final mile" in promoting electric carsAccording to the China Charging Union, in the first half of this year alone, the country witnessed the addition of 1.647 million charging units, with domestic new energy vehicle sales hitting 4.944 million units, indicating a rapid expansion of charging infrastructure alongside electric vehicle growth.

According to Tong Zongqi, the Deputy Secretary-General of the Charging Union, as of June 30th, the cumulative number of charging units across the country reached 10.243 million, a 54% increase year-on-yearThe establishment of charging and battery swap facilities has been swiftly advancing

The ratio of charging units to electric vehicles stands at 1:3, which is generally sufficient to meet the growing demand of new energy vehicles.

However, challenges still persist, as the uneven development and inadequate planning of charging facilities remain concernsTong indicated that the expansion of charging infrastructure is directly linked to the growth trajectory of new energy vehiclesIn the southern and eastern coastal regions, the penetration of electric vehicles is steadily rising, with some areas surpassing a 60% penetration rate, thereby elevating charging facilities from a phase of mere presence to one of quality improvementConversely, in many regions of Northeast and Northwest China, the penetration rate of electric vehicles remains low, with charging infrastructure still at an initial developmental phase.

In light of the rapid growth in the new energy vehicle market, reinforcing the charging infrastructure will create a more favorable environment for these vehicles, unlocking further consumer potential and promoting the industry's development

Recently, during the “Chengdu Super Charging Day” event, Xiaojucharging announced an accelerated charging feature designed to enhance merchant ecosystem development and improve users’ rapid charging experiencesAccording to Wang Kun, the product experience head at Xiaojucharging, the speed of charging has become the most critical concern for usersThe accelerated charging feature utilizes real-time algorithms to optimize charging power outputs based on the matching capacity of vehicles and charging units, significantly reducing charging times.

Tong emphasized that local governments, charging enterprises, and electric vehicle owners need to collaborate to construct and utilize charging infrastructure effectivelyGovernments should prioritize formulating comprehensive plans for charging station developments in their regionsIn first- and second-tier cities, differentiated subsidy phases should be implemented for star-rated stations and new technologies to incentivize development