New energy vehicle sales in rapid growth in China

China saw skyrocketing sales of new energy vehicles (NEVs) in June, as lower fuel costs and government subsidies helped boost sales of both brand-new and second-hand NEVs.

In June, the retail sales of passenger NEVs topped 500,000 for the first time in China, marking a record 130.8-percent increase over the same period of last year, according to data released by China Passenger Car Association.

Higher gasoline prices are among the reasons behind the customers' embrace of hybrid or pure electric vehicles.

"I think it will be much cheaper to own a new energy vehicle, which requires less maintenance," said a Beijing customer surnamed Wu.

"As for the cost of use, driving a pure electric vehicle will cost less than 10 cents per kilometer, while driving a gasoline-powered vehicle will cost around one yuan for the same distance," said Ma Weipeng, a sales director at a car dealership in Beijing.

In 2022, Beijing will allocate 70,000 new license plates for NEVs, which is 10,000 more than last year. Meanwhile, a year-round government subsidy for new passenger NEV buyers to the tune of 10,000 yuan (over 1,490 U.S. dollars) also encouraged customers to opt for NEVs.

"The number of Li Auto orders from Beijing has reached 200 percent the total we received in the same period of last year," said Wang Sailun, a regional sales manager from the leading NEV manufacturer in China.

Chinese NEV manufacturers are gaining a competitive edge in the domestic vehicle market.

In the first half of 2022, Chinese automaker BYD sold about 641,400 NEVs, a year-on-year increase of 314.9 percent, seizing the NEV crown from Tesla.

Meanwhile, the sales of second-hand NEVs have been on an upward trend so far this year.

"Our new energy vehicles' turnover has doubled from last year," said Zhang Meng, a sales manager at a second-hand vehicle dealership.

"We sell an average of 10 second-hand new energy vehicles per month so far this year, doubling the monthly turnover of last year," said Zhang Shengchi, a supply chain manager with an online vehicle trading platform.