Leading Chinese electric automaker BYD continues to advance in the electric vehicle industry with its cutting-edge and affordable offerings.
Speaking at an annual industry event in Beijing, BYD Chief Executive Wang Chuanfu said that NEV share will likely achieve the 50% mark in the next three months.
BYD Chairman estimates 50% NEV share
BYD CEO Wang initially expected China’s monthly NEV penetration rate to surpass 50% within this year. He updated this forecast during the recent China EV 100 Forum, saying that it will transpire in the “next three months.”
CEO Wang apparently based this estimate on NEVs’ successful achievement of a 48.2% share in China last week.
“The penetration rate of NEVs crossed 48.2 percent last week, and if it continues at this rate, I estimate that the penetration could cross 50 percent in the next three months.”
BYD Chief Executive Wang Chuanfu
More interestingly, CEO Wang further noted that NEV penetration could reach an even higher rate in the said period. Therefore, NEVs will finally dominate China’s automotive industry.
NEV growth rate in China
According to CnEVPost, the monthly NEV penetration rate successfully crossed the 40% threshold in China last year.
Meanwhile, the country’s domestic NEV sales reached about 7.88 million units in 2023. It indicated an overall penetration rate of over 35%.
It prompted CEO Wang to assert that the figure will surpass 50% as early as this year during a conference in the Guangdong provincial government last February 18.
Considering the rapid growth of the NEV market amid the fierce price war, CEO Wang now expects a more rapid penetration rate growth before the second quarter of the year ends.
For context, NEVs include all electrified vehicles, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCEVs).
Wang urges automakers to expand their brand asap
Considering the rapid penetration of NEVs in China, CEO Wang urges automakers to adopt the industry-wide transition while developing cleaner technologies.
He further noted that the automotive industry is entering a “tough stretch.” Therefore, he encourages automakers to immediately expand and grow their brand to match the industry’s pace.
For its part, BYD launched new, cheaper offerings to attract more customers and boost its sales. For instance, it introduced the new Qin Plus Champion Edition (DM-i model) last year with a base price of sub-100,000 yuan ($13,900) as part of its goal of “directly destroying the moat of joint venture vehicles.” Now, BYD now offers several battery-electric vehicles under or close to the 100,000 yuan price point.
