China's Electric Vehicle Battery Usage Up 37.4% in August... Growth Continues for 2 Consecutive Months

[Asia Economy Reporter Yoonju Hwang] The usage of batteries installed in electric vehicles (EV, PHEV, HEV) sold in China increased for the second consecutive month. In particular, battery usage in August surged by double digits compared to the same month last year.

According to SNE Research on the 28th, the total battery energy capacity of electric vehicles registered in China last August was 5.1 GWh, a 37.4% increase compared to the same month last year. The growth rate significantly increased compared to July (3.0%).

In China, battery usage for electric vehicles had been continuously decreasing since August last year. After peaking in February this year with a 78.4% decrease compared to the same month last year, it continued to decline until turning to a slight increase in July.

As the COVID-19 situation in China stabilized, the previously suppressed market demand largely recovered, leading to an increase in battery usage. By electric vehicle type, battery usage for BEV, PHEV, and HEV all surged by double digits, resulting in an overall upward trend.

However, the cumulative battery usage for electric vehicles in China from January to August this year was 27.9 GWh, a 31.2% decrease compared to the same period last year. This was due to double-digit monthly decreases in electric vehicle sales until June.

Meanwhile, in August, electric vehicle (BEV+PHEV) sales growth was led by multiple companies, with Shanghai GM Wuling, BYD, and Tesla ranking first to third.

Shanghai GM Wuling maintained first place thanks to a surge in sales of the Hongguang Mini EV. BYD returned to second place with strong sales of the Qin EV, Han EV, and Tang PHEV, regaining its position as a traditional powerhouse. Tesla continued its growth trend with Model 3 sales increasing more than fivefold. Additionally, Great Wall Motors, Leading Ideal, and FAW-Volkswagen showed remarkable growth with triple-digit increases, standing out in the market.

In contrast, GAC Trumpchi, Nio (Weilai), and Chery showed relatively sluggish growth with increases below the market average, while traditional leader Beijing Automotive (BAIC) was pushed out of the TOP 10, creating a stark contrast.

In cumulative sales from January to August, Tesla firmly held first place, with GAC Trumpchi and Nio (Weilai) also showing steady growth, and FAW-Volkswagen clearly demonstrating the characteristics of an emerging strong player. However, established leaders such as BYD and Beijing Automotive remained in decline, dragging the overall BEV+PHEV market into negative territory. Nonetheless, the total cumulative decline narrowed somewhat compared to January to July (-37.6%).

SNE Research forecasted, "With local market demand recovery accelerating from August and the base effect from the sales decline starting in August 2019, monthly growth is expected to continue for the time being."

This content was produced with the assistance of AI translation services.