China's new energy vehicle sales jump 138% in January

Sales of new energy vehicles in China jumped 138 percent to 96,000 units in January, making the sector the best performing one among the whole automotive industry, according to an announcement from the China Association of Automobile Manufacturers on Monday.

Sales of pure electric vehicles increased 179.7 percent to 75,000 units during the period, and those of plug-in hybrids grew 54.6 percent to 21,000 units, CAAM said.

The country sold 2.02 million passenger vehicles in January, down 17.71 percent on a yearly basis, while total automobile sales during the same period amounted to 2.37 million units, a drop of 15.8 percent compared with the same period last year.

According to an analysis by wallstreetcn.com based on CAAM data, the 17.71 percent annual decrease of passenger vehicle sales has been the greatest drop since January 2012, marking a sales slump for the seventh consecutive month.

Automobile exports in January increased 4.4 percent to 83,000 units on a yearly basis, with the commercial vehicle sector seeing the largest rise with 29,000 units exported, up 47.6 percent year-on-year.

The National Development and Reform Commission, together with nine other departments, released a program on Jan 29 to promote consumption nationwide, emphasizing the promotion of automobile consumption by optimizing new energy vehicle subsidies, supporting automobile replacement in rural areas, as well as boosting used car markets.

China's automobile industry is witnessing upgrading and transformation in 2019, and confronting more intensified competition, the association said. Vehicle safety, environmental protection, energy conservation and traffic congestion problems are also worth noting as the number of vehicles on the road increases, CAAM added.

CAAM predicted sales of 28.1 million units of automobiles in China this year, representing no growth compared to 2018. In the forecast, passenger vehicle sales are expected to comprise 23.7 million units, while commercial vehicles would see a mild increase of around 1 percent to 4.4 million units.