All-in on Car Sales to Boost Domestic Consumption in China

10.01 Million Electric Vehicles in China... 6 of the World's Top 10 Best-Selling Models Are Chinese Brands
Promoting New Car Market Activation Including Electric Vehicles Through Eased Used Car Transaction Regulations

[Asia Economy Beijing=Special Correspondent Jo Young-shin] The number of new energy vehicles (NEVs) in China has surpassed 10 million (cumulative).

[Image source=Reuters Yonhap News]

State-run Xinhua News Agency reported on the 8th, citing data from the Ministry of Industry and Information Technology of China, that as of the end of June, the total number of vehicles in China reached 406 million, of which new energy vehicles such as electric cars accounted for 10.01 million.

Among the 10.01 million NEVs, pure electric vehicles numbered 8.104 million, making up 80.9% of all new energy vehicles.

Xinhua News Agency also reported that 2.209 million electric vehicles were newly registered in the first half of this year. This is more than double the 1.106 million registered in the previous year. Xinhua emphasized that 19.9% of newly registered vehicles this year are new energy vehicles.

Guo Shougang, Deputy Director of the Equipment Industry Department at the Ministry of Industry and Information Technology, said, "Six out of the ten best-selling new energy vehicle models worldwide are Chinese brands," adding, "The domestic expansion of new energy vehicles such as electric cars has rapidly enhanced the product competitiveness of Chinese electric vehicles."

The Chinese government, facing a significant decline in domestic demand due to the resurgence of COVID-19 and consequent lockdown measures, is using automobiles as a driver for domestic consumption by easing regulations on the used car market. Last year, retail sales of automobiles in China amounted to 4.4 trillion yuan (approximately 853 trillion Korean won), accounting for 9.9% of total retail sales.

Chinese Premier Li Keqiang, at a State Council executive meeting held last month, ordered the extension of policies to expand electric vehicle adoption, including the exemption of acquisition tax on electric vehicles set to expire at the end of this year. He also instructed the formulation of policies to revitalize the used car market to stimulate domestic demand.

Accordingly, the Ministry of Commerce of China announced that from August, it will completely lift regional transfer restrictions on used cars and activate used car transactions and distribution.

The People's Daily welcomed the easing of restrictions on used car transactions, stating that the activation of the used car market will invigorate the new car market. The People's Daily noted that last year, the volume of used car transactions in China was 17.59 million, which is less than 6% of the total number of vehicles owned, and predicted that the activation of used car transactions will have a positive impact on the new car market as well.

In the first half of this year, a total of 16.57 million new vehicles were registered nationwide in China, a decrease of 11.43% compared to the same period last year. Due to semiconductor chip shortages and lockdown measures following the resurgence of COVID-19, the total number of vehicle sales in China declined.

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