China 2H 2018 PEV Sales in Review

There were over 2 million plug-in EV (PEV) deliveries globally in 2018, and China was the leader. China’s 2018 PEV sales surpassed 1.1 million sales by year’s end. While sales decreased slightly from June to July, the second half of the year saw growth in each consecutive month. September through December saw PEV sales over 100,000, peaking in December at over 180,000. PEVs represented over 4% of all light duty vehicle (LDV) sales in the country for 2018.

December Sales Update

December 2018 saw the highest sales volume for the year. BAIC’s EU-Series was the month’s top seller with over 12,500 units registered. It was the only model that surpassed 10,000 for December. BAIC’s EC-Series had the second-highest sales with 8,400. Other models surpassing the 8,000 mark were the BYD e5 (8,200+) and the BYD Yuan EV (8,000+).

For the year, BAIC’s EC-Series made up 8% of China’s total PEV sales with over 90,000 sold, which was far and above the second place BYD Quin plug-in hybrid EV, which made up 4% of the market with 47,000. Other models eclipsing 40,000 sold on the year were the JAC iEV S/E and the BYD e5.

PEV Sales and LDV Market Share, China

(Source: Guidehouse Insights)

December PEV sales made up over 7% of all vehicle sales in China. Historically, PEV sales are highest in the fourth quarter globally, and China is no exception, which saw record highs for each month.

China’s New Energy Vehicle Policy Comes into Effect

After its initial 1 year delay, China’s New Energy Vehicle (NEV) policy came into effect at the beginning of 2019. The policy has various levers to move the Chinese passenger vehicle market toward higher penetrations of plug-in hybrid, battery electric, and fuel cell vehicles. The policy is a NEV credit program that will require manufacturers to produce or import enough NEVs to meet the 2019 and 2020 credit targets—credits must surpass 10% and 12% of vehicle sales, respectively.

The policy creates a credit market—manufacturers with a NEV credit surplus can bank their credits for future use, use their credits toward meeting their obligations for the country’s corporate average fuel consumption (CAFC) policy, or sell them to other manufacturers that have a deficit in either NEV or CAFC targets. Manufacturers with production and import volumes below 30,000 per year are exempt from the NEV program, but not CAFC. The International Council on Clean Transportation estimates the policy will push the Chinese market to 5 million NEV sales in 2020.