Electric vehicles first took over 65% of China's auto market

The share of fully electric vehicles and plug-in hybrids in China's auto market first exceeded 65% in August, setting a new historical high. The transition from gasoline cars is accelerated by high fuel prices amid the war with Iran.

This was reported by South China Morning Post with reference to data from the China Passenger Car Association.

In August, 1.54 million passenger cars were sold in mainland China. Of these, 65.2% were fully electric models and plug-in hybrids.

This is a new record for the Chinese market. The previous maximum was set just a month earlier in July, when the share of such cars was 65.1%.

At the same time, China's overall automotive market remains weak due to the economic slowdown. Sales of gasoline cars in August collapsed by 40% year-on-year, while supplies of electric vehicles and plug-in hybrids decreased significantly less - by 10.1%.

Thus, the record share of electrified vehicles is explained not so much by absolute growth in their sales, but by a much faster drop in demand for traditional gasoline models.

One of the factors accelerating this transition has been higher fuel costs due to the war with Iran and oil price increases. Tensions around the Strait of Hormuz and disruptions in energy markets support high oil and petroleum product prices, which makes operating gasoline cars more expensive.

An additional incentive for buyers was the market entry of a large number of new electric models. Chinese automakers are actively equipping them with driver assistance systems and other new technologies, and the development of charging infrastructure is gradually reducing concerns about range anxiety.

Source: South China Morning Post