The development momentum of China's electric vehicle market is strong, and the electrification penetration rate expected to break through 45% by 2024

Recently, according to the latest retail sales data of the Joint Conference of Passenger Car Market Information of China Automobile Dealers Association, the retail market in July was 1.729 million units, a decrease of 2% compared with the same period last year, and a decrease of 2% compared with the same period last month. Among them, the retail market of electric vehicles was 879,000 units, an increase of 37% compared with the same period last year and an increase of 3% compared to the same period last month. The penetration rate of electric vehicles reached 50.84%, it broke through 50% for the first time, which marks that the electric vehicle market has officially entered a new development stage.

So far this year, a total of 11.568 million vehicles have been retailed, an increase of 2% compared to the same period last year. Among them, electric vehicles have retailed a total of 4.991 million units, an increase of 34% compared to the same period in last year. The penetration rate of electric vehicles from January to July this year is 43.14%, an increase of 10.17 percentage points compared to the same period last year (the penetration rate of electric vehicles from January to July in 2023 is only 32.97%), which shows that the electric vehicle market is growing rapidly, and consumer acceptance and recognition are also constantly improving.

It is worth mentioning that the retail penetration rate of electric vehicles in China from January to July this year is respectively 32.8%, 35.8%, 41.6%, 43.7%, 47.0%, 48.4% and 50.8%, with the lowest monthly increase of 1.4 percentage points and the highest monthly increase of 5.8 percentage points. If this trend continues, the penetration rate will exceed 45% in 2024, and breakthrough 50% next year, or even reach higher levels.