More than half of April, the news that the market penetration rate of new energy vehicles reached 50.39% spread far and wide, and the replacement of fuel by new energy is a foregone conclusion or will be realized this year. In the era of new energy vehicles, people who buy fuel vehicles have gradually become a minority, and China's new energy vehicle brands, led by BYD, have gradually become an important role in the global new energy market competition.
The penetration rate of new energy vehicles exceeded 50% for the first time
In the first half of April, the retail sales of the passenger car market reached 516,000 units, a decrease of 11% compared with the same period last year, and the retail sales of new energy vehicles reached 260,000 units, a year-on-year increase of 32%.
From 2005 to 2015, the penetration rate of new energy vehicles in China exceeded 1% in 10 years. In the five years from 2015 to 2020, the penetration rate of new energy reached 5.4%, and in just four years since 2020, the penetration rate of China's new energy vehicle market has increased from 14.8% in 2021 to 28% in 2022 and then to 31.6% in 2023, and the proportion of new energy vehicles in the market has become a foregone conclusion. In the first half of April, the retail penetration rate of new energy passenger vehicles was 50.39%, surpassing that of traditional fuel passenger vehicles for the first time, and China's target of more than 50% penetration rate by 2035 set by China in 2020 may be achieved ahead of schedule.
Some industry experts said that with the increase in the penetration rate of new energy vehicles, the related industrial chain will also be vigorously developed, including the manufacturing of key components such as batteries, motors, electronic controls, and the construction of charging facilities, which will further promote the transformation and upgrading of China's manufacturing industry.
Fuel vehicles have entered the minority era
China's new energy vehicles showed explosive growth far beyond expectations, becoming the global leader in the new energy vehicle industry, the traditional fuel vehicle market, the market share of joint venture brands continued to decline, last year China's own brand passenger car market share exceeded 52%, the strong rise of independent brands has become an indisputable fact.
Also last year, the top 10 joint venture brands in terms of sales volume all declined to varying degrees, including SAIC Volkswagen down 8% year-on-year, SAIC-GM down 14.4% year-on-year, GAC Toyota down 5.5% year-on-year, GAC Honda down 13.9% year-on-year, and Dongfeng Honda down 4.9% year-on-year.
In 2023, BYD will continue to lead the sales wave of the new energy vehicle market, with a cumulative annual sales volume of 3.0244 million units, a year-on-year increase of 61.86%.
This year, the new energy vehicle market continued to maintain a boom in production and sales, and the market share in the first quarter exceeded 30% again. Among the top 10 car companies in terms of sales in March, only FAW-Volkswagen and SAIC Volkswagen were on the list, and the joint venture brands of Toyota and Honda were no longer in the limelight, while the Korean and French joint venture brands were reduced to a niche.
Some automotive industry experts believe that new energy vehicles in power, quiet, intelligent and other aspects of fuel vehicles have obvious advantages, especially plug-in hybrid system, set fuel, plug-in, extended range, pure electric functions in one, after the price barrier breakthrough, fuel vehicles are difficult to fight back, is expected in the second half of the year, the penetration rate of new energy vehicles will be further improved, fuel vehicles will enter the minority era.
It is a foregone conclusion that new energy will replace fuel oil
In March this year, at the China Electric Vehicle 100 Forum, BYD Chairman Wang Chuanfu predicted that the pattern of China's auto market is about to usher in a new turning point, and the penetration rate of new energy vehicles will exceed 50% in the next three months.
After a lapse of 20 days, Wang Chuanfu's prophecy came true. New energy vehicles are gradually replacing fuel vehicles to become the mainstream of the market, which is not only Wang Chuanfu's keen insight into the entire industry, but also his confidence in BYD's development.
The penetration rate of new energy has exceeded 50%, which means that new energy vehicles are shifting from policy-driven to market-driven, becoming a new choice for consumers to travel, and at the same time, reflecting consumers' recognition and acceptance of new energy vehicles.
The new energy vehicle market continues to grow, the competition in the joint venture brand market is more intense, and for fuel vehicles, the trend of new energy replacing fuel is a foregone conclusion will become more obvious. With BYD's monthly sales returning to 300,000 units in March, BYD will further expand overseas markets in 2024, and sales are expected to reach new peaks.