Electric vehicle sales surpass fuel vehicles! Next year, the Chinese car market is expected to welcome this historic moment first
According to institutional forecast data, in 2025, the sales of electric vehicles in China, including pure electric and plug-in hybrid vehicles, are expected to grow by about 20% to 12 million units, while the sales of fuel vehicles may decline by more than 10% to 11 million units
As the global automotive industry accelerates its transition to electrification, China is standing at a historical turning point. According to the latest forecasts, next year China is expected to achieve electric vehicle sales surpassing traditional fuel vehicles for the first time, leading several years ahead of overseas markets.
On December 26, forecasts cited by the UK Financial Times indicate that China's electric vehicle sales, including pure electric and plug-in hybrid vehicles, will exceed international expectations, with an estimated growth of about 20% by 2025, reaching 12 million units. This figure is more than double the 5.9 million units sold in 2022. Meanwhile, sales of fuel vehicles are expected to decline by over 10% to 11 million units, a nearly 30% drop compared to 14.8 million units in 2022.
At the same time, electric vehicle sales growth in Europe and the United States is slowing, indicating a sluggish transformation of the traditional automotive industry in the West, with uncertainties surrounding government subsidies.
Robert Liew, Asia-Pacific Renewable Energy Research Director at Wood Mackenzie, stated:
“China's electric vehicle milestone demonstrates the country's success in technology development and securing key resources in the global supply chain, also signaling a reduction in manufacturing costs and consumer prices. They want to electrify everything, no other country can compare to China.”
UBS, HSBC, Morningstar, and Wood Mackenzie believe that the rapid rise of China's electric vehicle industry will pose challenges to overseas automakers.
Notably, a previous article from Wall Street Journal mentioned that under fierce competition from local electric vehicle companies, General Motors' business in China is weak, and it is expected to incur over $5 billion in non-cash charges in the fourth quarter. Nissan and Honda have also stated that they are responding to the "rapidly changing business environment" through mergers.
Data from AutoMobility shows that as the annual growth rate of China's electric vehicle market approaches 40%, the market share of foreign brand vehicles has fallen to a historic low of 37%, a significant drop from 64% in 2020.
Analysts say, "The long-term trend is clear—China's electric vehicle giants are unstoppable."