China is expected to outpace the U.S. to become the world's largest new-energy vehicle (NEV) market this year, the Xinhua News Agency reported over the weekend, citing an industry association.
Xu Yanhua, deputy secretary-general of the China Association of Automobile Manufacturers (CAAM), was quoted by Xinhua as saying on Saturday that in part driven by the central government's subsidies, sales of NEVs in China will settle between 220,000 and 250,000 units, while the volume in the US will be about 180,000 units.
China's NEV sales will account for more than 40 percent of global sales this year, higher than in the US, EU and Japan, respectively, Xu noted.
To boost the development of NEVs as part of an effort to reduce air pollution, local governments in China have offered support policies.
In Beijing, for example, the city decided in October to exempt NEVs from its license-plate lottery. The move was in line with the State Council's requirement that local authorities remove traffic controls and lift purchase restrictions on NEVs.
Data from the CAAM showed that in the first 10 months of the year, NEV sales in China surged 290 percent year-on-year to 171,145 units, while overall vehicle sales were up just 1.5 percent to 19.28 million.
Despite the fast growth, Xu expressed concern about the domestic NEV market, given that there is still a need for better safety and improved battery technology.
