Electric Cars in China: The Myth of the Historic Surge—A July 2024 Reality Check

Some folks have been spreading rumors that in July 2024, China saw a historic surge in electric car sales, hitting a record 50.7% market share. But here’s the truth: it’s all nonsense. A total fabrication. In reality, electric car sales are plummeting dramatically.

Sure, the numbers show that new energy vehicles (NEVs) reached that 50.7% mark, but here’s the kicker—it’s not just about pure electric cars. Plug-in hybrids (PHEVs), which still rely on good old gasoline engines, are booming. So, that market slice includes BEVs (battery electric vehicles) and PHEVs combined.

Why the misleading figures, you ask? Simple. The electric vehicle lobby is playing a shell game with the stats to confuse everyone. Three years ago, NEVs made up just 7% of total car sales; now, they’ve supposedly rocketed to 50.7%. But let’s be honest—NEVs cover a lot more than just BEVs. They also include fuel-cell vehicles and those plug-in hybrids we mentioned earlier.

Now, let’s get real about July 2024. The supposed boom in electric cars in China? It’s more fiction than fact. NEV sales in China actually dropped to 991,000 units, with pure electric BEV sales down 10% from June. On the flip side, PHEVs are breaking records, hitting 438,000 units. So while overall NEV sales saw a yearly increase of 27%, they fell by 5.53% from June, ending two months of sequential growth.

In July, BEV sales dipped to 551,000 units—a slight 2.6% rise year-over-year, but a significant 10% drop compared to June. Meanwhile, PHEVs set a new record with 438,000 units sold, up a whopping 80.7% year-over-year. Even fuel cell vehicles saw a boost, with sales jumping to 1,000 units, an increase of 181.2% from the previous year.

China’s total vehicle sales in July hit 2,262,000 units, down 5.2% year-over-year and 11.4% compared to June.

And here’s where it gets even juicier: Beijing is scrambling to roll out more incentives. Domestic NEV sales, excluding exports, reached 887,000 units in July, up 30.7% year-over-year but down 7.9% from June. China exported 469,000 vehicles in July, with NEV exports hitting 103,000 units, up 20.6% from June.

The bottom line? The electric vehicle market in China is not as rosy as some would have you believe. If it were, Beijing wouldn’t be rushing to inject fresh incentives into the mix.