China's NEVs sales surpass conventional fuel vehicles for the first time in July

(ECNS) -- Sales of new energy passenger vehicles in China reached 878,000 units in July, surpassing the 840,000 units sold of conventional fuel vehicles for the first time.

China's new energy vehicles (NEVs) achieved a market penetration rate of 51.1 percent in July, marking a substantial increase of 15 percentage points year on year, according to the China Passenger Car Association.

The shift of NEVs from being unwelcome to widely popular is driven by technological innovation, policy guidance, and market demand.

Chinese automakers have advanced plug-in hybrid technology, with NEVs now making up over 50 percent of sales even in the off-season, according to the association.

China has also rolled out initiatives to boost the adoption of NEVs, including purchase tax exemptions, rural car sales incentives, and subsidies for trading in old vehicles for new NEVs. These efforts have lowered the cost of buying NEVs, spurring consumer interest.

Meanwhile, growing environmental consciousness and public confidence in the capabilities of NEVs are also fueling a steady rise in demand.

Currently, consumer demand is steadily recovering. According to the latest data released by the National Bureau of Statistics on Friday, China's consumer price index (CPI) rose by a more-than-expected 0.5 percent in July, 0.3 percentage points higher than the previous month. On a month-to-month basis, CPI increased by 0.5 percent, reversing the previous month's 0.2 percent decline.

More policies to boost consumption are expanding the NEVs market. The subsidies for replacing old cars with NEVs have been increased from 10,000 yuan ($1392.62) to 20,000 yuan.