The Dominance of Plug-In Electric Vehicles in China’s Auto Market: Record-Breaking Sales and Emerging Trends

Jakarta, INTI - The Chinese auto market has been experiencing a significant transformation, with plug-in electric vehicles (PEVs) continuing to dominate. In October 2024, PEVs achieved yet another remarkable milestone, surpassing 1.19 million units sold within a total market of 2.26 million vehicles, marking a 57% year-over-year increase. In contrast, the overall market grew by just 11%. This marks the third consecutive month where PEVs have surpassed the one-million-unit mark. With electric vehicles (EVs) steadily taking over, the future of transportation in China is undergoing a seismic shift.

Record-Breaking Sales and Growth Trends

Breaking down these impressive numbers reveals deeper insights into the market. October was a key moment in China’s EV seasonality, as growth was seen across all powertrains, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and extended-range electric vehicles (EREVs).

• BEVs saw a 37% increase, reaching a record 673,000 units.
• PHEVs jumped by an astonishing 108% to 405,000 units, setting a new record.
• EREVs also showed significant growth, reaching 117,000 units, a 55% year-on-year increase.

This overall expansion highlights the increasing consumer acceptance of electric powertrains, regardless of their specific configuration. In fact, BEVs alone accounted for 56% of all plug-in vehicle sales, a trend that aligns with year-to-date (YTD) numbers, showing continued dominance in the market. EREVs made up 10% of plug-in vehicle sales in September, while PHEVs (non-EREV models) accounted for 34%.

Impressive Market Share for Plug-in Vehicles

The growing popularity of plug-in vehicles is also evident in their rising market share. In October 2024, PEVs commanded a substantial 53% market share of all vehicle sales in China, with BEVs accounting for 30% alone. This trend has continued throughout the year, with the overall market share for PEVs standing at 47%, including 27% for BEVs. With two months remaining in the year, it is highly probable that PEVs will capture nearly 50% of the market by the end of 2024.

When compared to 2023, the numbers show an impressive rise in adoption. In October 2023, the PEV market share was 36%, with BEVs making up 24%. Fast forward to the same month in 2024, and we see a 3% increase in BEVs (from 24% to 27%), but the biggest jump has come from the PHEV market. This segment grew from 12% to 20%, showing that the hybrid solutions are gaining momentum, possibly due to their versatility in both urban and rural areas.

The BYD Dominance: Top-Selling Models and Categories

BYD, China’s largest and most influential electric vehicle manufacturer, continues to dominate the PEV market, capturing multiple segments and consistently topping sales charts. In fact, the top seven vehicles in the overall Chinese market were all PEVs, with the Tesla Model Y emerging as the best-selling non-BYD model, securing the sixth position. The top five positions were all claimed by various BYD models, reinforcing the company’s overwhelming presence in the market.

Notably, BYD's Song SUV was the market leader, with an outstanding 65,807 units sold in October. This model has proven itself to be a key player for BYD, consistently selling more than 50,000 units every month, which is critical for maintaining its position in the highly competitive Chinese automotive landscape.

Surge in Sales for Smaller Electric Vehicles

Another success story for BYD has been the Seagull, a small hatchback that has captivated the Chinese market. In October, it registered 51,288 units, reaching a new record. As production shifts to export markets, the Seagull has the potential to be BYD’s global best-seller, especially with its growing demand not just in China, but also in regions like Latin America, Asia-Pacific, and potentially Europe.

The BYD Qin Plus, a midsize sedan, also performed well, ranking third with 39,808 units sold, including 9,002 BEV models. This car has been a staple in the BYD lineup, consistently attracting consumers with its competitive pricing and solid performance.

The Future of China’s EV Market

While BYD remains the dominant force in the PEV market, other automakers are also making strides. Geely, for example, is emerging as a significant competitor. The Geely Geome Xingyuan, a new addition to the Chinese EV market, debuted with a strong performance, registering 15,130 units in its first month of availability. This solid debut suggests that Geely is becoming a serious contender in the fight for market share against BYD, and its vehicles are likely to disrupt the market status quo soon.

Additionally, companies like Wuling, Li Auto, and Xiaomi are seeing increased success with models like the Wuling Bingo, the Li Auto L6, and the Xiaomi SU7. These vehicles are gaining traction due to their affordability, innovative designs, and the growing demand for smaller, more affordable electric vehicles.

The Rise of the Compact EV Market

As the demand for electric vehicles grows across various segments, it’s clear that China’s EV market is also seeing significant shifts in consumer preferences. While the compact or C-segment traditionally favored internal combustion engine (ICE) vehicles, October 2024 marked the first time in over a year that the C-segment had a 100% ICE podium. However, this shift is expected to be temporary. Models like the BYD Yuan Plus and Geely Galaxy E5 are gaining traction in this segment, making it clear that the electric revolution will soon extend to all categories of the auto market.

Looking Beyond the Top 10: The Expanding Electric Vehicle Landscape

Beyond the top-selling models, a host of other electric vehicles is making waves in the market. Wuling’s Mini EV, for example, saw a year-best performance with 34,185 units sold. Other rising stars include the Changan Lumin (17,040 units) and the Geely Panda Mini (15,712 units).

These vehicles, while smaller in terms of sales volume compared to BYD’s offerings, are making significant inroads into the urban mobility segment. With their compact size and affordability, these models are particularly attractive to first-time buyers and those living in crowded urban environments.

The Role of Foreign Manufacturers in China’s EV Market

Though local manufacturers dominate the Chinese EV market, foreign automakers are slowly beginning to make their presence felt. Volkswagen’s ID.3, for example, achieved its best-ever monthly sales in October, with 9,998 units sold. This modest success underscores the growing interest in EVs among foreign companies, and it suggests that Chinese consumers are increasingly open to international brands.

Meanwhile, Xpeng and Leapmotor are also finding success with their new EV models. The Xpeng Mona M03 and Leapmotor C11 are receiving positive reviews and increasing sales, indicating that local startups are becoming significant players in the competitive Chinese EV market.

The Road Ahead: A Fully Electrified Future

With China’s plug-in electric vehicle market now accounting for nearly 50% of total vehicle sales, the country is on track to achieve full electrification by 2030. This ambitious goal reflects China’s commitment to sustainable transportation and its role as a global leader in the EV industry. By continuing to innovate and expand the availability of affordable electric vehicles across all segments, China is paving the way for the future of mobility.

As more automakers, both domestic and international, enter the market and as technology continues to advance, we can expect even more exciting developments in the coming years. The dominance of plug-in vehicles in China is not just a passing trend—it is the future of the automotive industry.