The Chinese market for new energy vehicles is expected to grow steadily. According to forecasts, over the next five years, sales of such cars will increase by more than 40% annually.
A senior official from the China Association of Automobile Manufacturers (CAAM) shared this information in an interview with Reuters. Fu Bingfeng, executive vice chairman of CAAM, said that CAAM estimates that new energy vehicle sales will reach 1.9 million units this year and 2.7 million units in 2022.
New energy vehicles include electric vehicles, plug-in hybrid models and even hydrogen fuel cell vehicles. Major manufacturers such as Tesla, NIO, Xpeng and BYD are expanding their manufacturing capacity in the region. This comes after automakers were encouraged by the government to support greener cars to reduce pollution. China plans to extend its tax exemption on purchases of such vehicles beyond 2022 to support the development of this segment.
The latest news was reported by Wan Gang, a senior government industrial policy adviser, also referred to by local media as the “father of electric vehicles.” After the information appeared, the shares of the aforementioned companies rose.
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