Chinese authorities support the development of electric vehicles: subsidies and benefits for producers and consumers
Over the past year, hybrid vehicles have become more popular in China than electric vehicles.
The market leader remains BYD, which reported sales of 4.3 million passenger vehicles in 2024. Of these, nearly 2.5 million were equipped with a hybrid powertrain. This marks a reversal of the trend compared to 2023, when BYD sold slightly fewer hybrid vehicles than electric vehicles.
Tesla, one of the world’s largest electric vehicle makers, also performed well, with the China Passenger Car Association predicting it will sell more than 600,000 vehicles in China for the second year in a row.
Li Auto also performed well, setting a record with deliveries of 500,508 vehicles last year. Most of the company’s vehicles are equipped with a fuel tank to extend the range of the electric motor.
Chinese startup manufacturers that have only sold EVs so far ranked lower in terms of full-year deliveries. Zeekr sold 222,123 EVs, Nio sold 221,970, and Xpeng sold 190,068.
“We still see growth in the Chinese market in terms of electric vehicles, but it’s slowing down a little bit. We predict that by 2031, there will still be demand for internal combustion engine vehicles, including hybrid vehicles,” said Joe McCabe, president and CEO of AutoForecast Solutions.
Experts say the market trend is part of China’s efforts to develop local manufacturers rather than rely on foreign brands. Cities like Beijing are making it easier for residents to obtain license plates for new electric vehicles.
Hybrid vehicles also drove U.S. light-vehicle sales in the second quarter, bringing the combined penetration rate of hybrid and electric vehicles to 18.7%, according to Wards Intelligence data released by the U.S. Energy Information Administration.
The Chinese government continues to support the development of electric vehicles by providing subsidies and incentives to producers and consumers. The electric vehicle market in China is expected to grow further in the coming years, and experts predict that the country will become one of the largest electric vehicle markets in the world.
