The New Energy Vehicle market achieved total sales of 12.2 million units, representing a YoY growth of 37.1% and a market penetration rate of 45%.

Throughout 2024, New Energy Vehicle exports reached 1.089 million units, reflecting a YoY growth of 5.4%, with the export growth rate slowing down.

The growth rates for PHEV, EREV, and BEV were 88%, 79%, and 15%, respectively. Although BEVs still held 57.9% of the NEV market share, this marked a decline of 23.7 pcts compared to 2020

Chinese brands captured 81% of the NEV market share, an increase of 20 pct over five years. In contrast, JV brands lagged in product launches, leading to a significant decline in their market share

The NEV market has grown rapidly in the B-segment and above, with penetration rates reaching 48% in the B-segment and 67% in the C/D-segment.
The intensive launch of A-segment NEVs in late 2024 is expected to drive rapid growth in this segment by 2025

NEV SUV and sedan markets maintained rapid growth, while MPVs gradually gained attention. Among the top 10 best-selling models in each category in 2024, 6 out of 10 sedan models, 4 out of 10 SUV models, and 3 out of 10 MPV models were NEVs

BYD achieved rapid growth, with remarkable success in the NEV market. Tesla’s 2024 sales declined 3%, yet maintained second place. Li Auto and AITO also entered the top five

CATL and BYD account for 70% of the power battery market’s installed capacity, with LFP being adopted by more manufacturers

The 100,000-200,000 price area, mainly in the A-level market, is the market with the largest market capacity.
Existing models have not yet appeared popular models, urgently need star models to lead the sales growth.
Sales are expected to double in 2022, with a market size of 1.1 million-1.3 million.

BEV penetration rate is low, and the future market potential is huge.

The 100,000-200,000 yuan is the mainstream price area of China’s passenger car market, but the BEV in this price area has not yet been increased, which is an important potential market.

• In 2021, the sales volume of 100,000-200,000 yuan BEVs was nearly 700,000, focusing on the A-class market.
• The 100,000-200,000 price area is the mainstream price area of passenger car sales in China. The sales volume reaches 10 million units, but the penetration rate of BEV is only 6%, with huge potential in the future.

There are no blockbuster models yet and star models are badly needed to lead sales growth.

The sales volume of the 100,000-200,000 price area is focused on the A-class market, but the existing models have not yet appeared popular models and star models are urgently needed to lead the sales growth.

• Traditional independent brands: Has achieved initial market results, is exploring the way to burst sales, such as BYD, Aion, ORA, etc.
• Traditional joint venture brands: As an important main body of the traditional fuel price area, it has released electric strategies to accelerate the strategic transformation, such as: Volkswagen, Honda, etc.
• New power brand: After consolidating the existing price area, the price area drops to 150,000-200,000 yuan, such as: Xpeng P5, Nio Gemini, etc.

Whether the private market can be opened up is the key to the subsequent development of Aion S.

Local industry support, opening up to the public market, has a strong regional nature, whether it can open the private market is the key to its subsequent development.

• In 2021, the cumulative sales volume was 72,000, with a monthly average of 5,986 units and 100,000 to 200,000 BEV MS% was 10.4%.
• In 2021, Guangdong province accounted for 55.3% and the public share reached 65.6%.

Volkswagen and other ordinary brands accelerate the transformation or will emerge star models.

Volkswagen has always been a leading brand in the Chinese market, but its electrification transformation is relatively backward and Volkswagen will accelerate its launch of ID. series in 2021. The monthly sales of more than ten thousand.

• The VW Group said it will invest 89 billion euros in the next five years in new technologies, such as electric vehicles and digitization and lessen the gap with Tesla.
• A quarter of VW’s new cars sold are expected to be battery-driven by 2026 and it plans to become the global electric vehicle market leader by 2025.
• In 2021, the monthly sales volume of Volkswagen ID. series has exceeded 10,000. In the future, with the introduction of more models and the promotion of the dual-car strategy and model segmentation strategy, the electric transformation of VW will accelerate.

The models built based on the pure electric platform have high cost performance, or will emerge the star models.

Users of 100,000-200,000-price area pay close attention to the cost performance, with the cost performance of fuel vehicles may become star models.

• With the deepening of the electrification process, the mainstream car companies have launched pure electric platforms, such as: BYD, Volkswagen, Honda, GAC, Leap, Neta, etc.
• The models built based on the pure electric platform have the advantages of large space, good driving experience and low cost and the models and fuel vehicles are basically affordable and have advantages in space, use cost, driving experience and other aspects, or will launch the replacement effect on fuel vehicles, and become the key to detonate the mainstream market.

Models based on differentiation positioning may become star models in the market segment.

The largest market capacity in the 100,000-200,000 price area is the fertile soil for cultivating hot style models in the market segment. ORA has achieved certain success with differentiated positioning.

• ORA is positioning a car brand that loves women more, focusing on the women’s car market. The Cat family helps ORA sales continue to increase.
• In the future, ORA will continue to deepen its differentiation positioning, deeply cultivate the female car market and may become the star product of the subdivided car market in the future.
• The evolution of the car market towards diversification, or will emerge more star models in the market segment and become the key to detonate the mainstream market.

Sales are expected to double in 2022 to 1.1 million-1.3 million yuan.

The 100,000-200,000 price area is an important potential market. With the accelerated layout of mainstream car companies, the sales volume may double in 2022 to 1.1 million to 1.3 million.

• At present, the BEV penetration rate in the mainstream price area is relatively low and it has not yet been increased. The sales volume in 2021 is only 680,000 units.
• But 100,000-200,000 price area is the core sales market of traditional fuel vehicles, the market capacity of 10 million, the mainstream car companies have layout.
• In 2022, the mainstream market may emerge with star models, leading the sales surge and the market size may reach 1.1 million-1.3 million.

The sales volume in the price area below 100,000 yuan increased rapidly and the sales volume exceeded 800,000 units in 2021.
The sales volume is concentrated in the A00 class market within 50,000 yuan, but with the launch of new models, it will penetrate into the price area of 70,000-90,000 yuan in the future.
In 2022, the market capacity of the price area below 100,000 yuan will be 1 million-1.1 million yuan.

A00 cars drive the low-end market to increase the sales volume rapidly.

In recent years, the sales volume of the price area below 100,000 yuan has grown rapidly, in 2021 the sales volume will exceed 800,000 units, mainly for A00 class cars.

• Users in the price area below 100,000 yuan are the most sensitive to the price and use cost. HongGuang MINI EV enters the market at a low price and quickly becomes a burst, driving the market sales to soar.
• In 2021, BEV’s sales volume in the price area below 100,000 yuan are highly concentrated in A00 class cars, while the A0 class market has not yet increased.
• Non-restricted cities are the main marketing markets of low-end BEV, which are relatively little promoted by policies such as purchase restrictions.

HongGuang MINI EV develops the A00-level market with a low price.

As a pioneer of the A00-level market segment, HongGuang MINI EV has absorbed many short-distance transportation users with the lowest price and the extreme cost performance.

• In the first 11 months of 2021,344,000 products were sold out, with a monthly average of 31,000 units. The market performance was stable and positive. It is the supply side driving the market demand and has become a phenomenon product.
• In the BEV market segment with an entry price below 50,000 yuan, Hongguang MINI occupies 68% of the market share and is the absolute dominant.

Sales focus on within 50,000, the future will penetrate to 70,000-90,000 yuan.

At present, the sales volume is concentrated in the A00 class market within 50,000 yuan, but with the launch of new models, it will penetrate into the price area of 70,000-90,000 yuan in the future.

• Within 50,000 yuan, mainly A00 class cars and the penetration rate of this class has been close to 100%.
• In the 50,000-100,000 price area, there have been no popular models, but some potential models with rapid sales growth have emerged, which will become an important incremental market in 2022.

Sales growth slowed in 2022, with a market size of 1 million-1.1 million.

The market of less than 50,000 yuan is stabilizing, and the market competition is fierce between 50,000 and 100,000,000 yuan. It is expected that the market capacity of the price area below 100,000 yuan is 1-1.1 million yuan in 2022.

• In the price area of below 50,000 yuan, the star model Hongguang MINI EV has gone through a complete sales cycle, and the sales volume has basically stabilized, and the sales growth rate will slow down significantly in the future.
• In the 50,000-100,000,000 price area, although some potential models have emerged, the fuel vehicles in the price area are significant, while the users in the low price area are highly sensitive to the cost performance, and the future sales growth is limited.