China’s EV Revolution Accelerates: Over Half of New Cars Now Electric

In a seismic shift transforming the global automotive landscape, China’s electric vehicle market has surged to unprecedented heights, with EVs now accounting for 52.3% of all new car sales in April—a milestone that signals the rapid transition away from internal combustion engines in the world’s largest automotive market.

According to data reported by The Electric Viking YouTube channel, electric car sales in China jumped by a staggering 42% in April compared to the previous year, defying typical seasonal patterns and cementing China’s position as the epicenter of the global EV revolution.

“This means there’s a very likely possibility that more than 16 million electric cars will be sold in China this year alone,” notes Sam Evans of The Electric Viking. “All car sales worldwide are going to be about 80 million this year—at least 16 million of those will be electric just from China, without even counting EV sales in the rest of the world.”

The April figures reveal that among the 52.3% of electrified vehicles sold, approximately 70% were fully electric, with the remainder being plug-in hybrids. This indicates stronger consumer preference for battery-only models over hybrid alternatives.

China’s new energy vehicle (NEV) retail sales have maintained robust year-on-year growth despite a slight decline from March. At the wholesale level, NEV sales increased by 41%, while passenger car segment sales rose by 37% compared to the previous year, according to CEvPost.com.

Cumulative retail sales of China’s passenger NEVs reached 3.34 million in the first four months of 2023, representing a 37% year-over-year increase. This growth is particularly significant considering that the first quarter traditionally represents a smaller portion of China’s annual auto sales.

“In China, the months of January, February, and March really make up a very small percentage of China’s car sales for the entire year,” Evans explains. “Probably around 50% of China’s sales actually come in the final four months of the year.”

Several Chinese automakers have emerged as clear winners in this electric transformation. BYD continues its dominant performance with approximately 350,000 vehicles sold. XPeng has recorded more than 35,000 sales, marking six consecutive months of deliveries exceeding 30,000 units. Other notable performers include Chery, Leap Motor, and technology giant Xiaomi, which sold 25,000 vehicles—reportedly reaching its production capacity for the next six months.

This accelerating transition to electric vehicles in China is having ripple effects across the global automotive industry. As the Chinese market increasingly favors electric options, international manufacturers are being forced to adapt their product strategies and investment priorities.

“Within probably 3 or 4 years, all car sales in China will be NEVs—there will be no non-NEVs,” predicts Evans. “As the rest of the world is basically following China and buying a lot of Chinese cars and also being influenced by what people in China want to buy, it’s more likely to mean we’re going to be seeing more electric cars, more plug-in hybrids, more really good ones coming to the market.”

The implications extend beyond China’s borders. With Europe’s planned ban on internal combustion engines by 2035 and India considering similar measures to address its severe air pollution challenges, the global automotive industry is undergoing a fundamental transformation. Chinese manufacturers, with their early lead in EV technology and production scale, appear positioned to capitalize on this worldwide shift.

For traditional automakers heavily invested in internal combustion technology, particularly those from Japan, Germany, and the United States, this rapid transition presents existential challenges. As Evans pointedly asks, “Automakers particularly Japanese and German ones and possibly American as well that rely on making money from internal combustion engine car sales are going to do what exactly?”

The answer to that question will likely determine which automotive companies thrive and which struggle to survive in the electric future that China is already embracing.