China's new-energy vehicle (NEV) output and sales in 2024 each exceeded 12 million, topping global rankings for the 10th consecutive year, according the China Association of Automobile Manufacturers (CAAM). In 2024, NEV production and sales reached 12.89 million and 12.87 million units, up 34.4% and 35.5% year-on-year, with sales accounting for 40.9% of total new car sales, up 9.3 percentage points from the previous year. NEV exports rose 6.7% to 1.28 million, maintaining global leadership, according to the CAAM.
Chinese-branded passenger car sales reached 17.97 million units, up 23.1% year-on-year, with their market share rising by 9.2 percentage points to 65.2%. In recent years, domestic car brands have improved their image and reputation, gaining growing popularity among Chinese consumers. The strong growth in NEV consumption, driven largely by domestic brands, known for affordability and quality, has boosted their market share. In 2024, China's total auto production and sales saw steady growth, with production reaching 31.28 million and sales reaching 31.44 million, up 3.7% and 4.5& year-on-year, setting new records and exceeding 30 million units for another year, according to the Association. The CAAM has forecast that total auto sales will reach 32.9 million units in 2025, marking a year-on-year increase of 4.7%. Sales of NEVs are expected to hit 16 million units, up 24.4% from the previous year.
Meanwhile, the outgoing Biden Administration has banned the sale of smart cars containing Chinese or Russian technology in the U.S. market. Software bans would take effect for model year 2027, while hardware restrictions would come into play for model year 2030. Curbs on those without a model year would start on January 1, 2029. The rule only applies to passenger vehicles weighing less than 4,536 kg “given the complexity of the commercial vehicle supply chain”, the U.S. Commerce Department said. As for technologies in smart commercial vehicles like trucks and buses, the department has plans to issue a separate rule “in the near future”, it added.
