[Asia Economy Reporter Park Byung-hee] The China Passenger Car Association (CPCA) has revised its forecast for electric vehicle sales in China this year upward from 5.5 million units to 6 million units, Bloomberg reported on the 10th.
On the same day, CPCA released data showing that sales of new energy vehicles in July more than doubled compared to the same period last year, leading to the upward revision of the annual forecast. Sales of new energy vehicles in July were recorded at 486,000 units, capturing a market share of 26.7%. Total passenger car sales in July reached 1.84 million units, a 20% increase compared to the same period last year.
If the CPCA's forecast of 6 million units is achieved, electric vehicle sales in China will double from 2.99 million units last year. CPCA stated in a press release that the 6 million unit forecast is a relatively cautious target and that the forecast could be raised further in early Q4.
Tesla Motors, the world's number one electric vehicle manufacturer, delivered 8,461 units in China and 19,756 units in Europe and Asia combined in July, totaling 28,217 units. Tesla's July deliveries dropped sharply by 64% compared to June due to a temporary halt in production lines while upgrading facilities at its Shanghai plant.
According to Tesla officials, the Model Y production line at the Shanghai plant was shut down for about two weeks in early July, and the Model 3 production line was halted for about 20 days starting from the 18th of last month.
During this period, facility upgrades were made to the production lines, increasing the Shanghai plant's annual production capacity from 450,000 units to over 1 million units, more than doubling it.
BYD's sales in July reached a record high of 162,530 units, tripling compared to the same period last year. BYD's sales in July last year were 50,492 units.
Due to the impact of COVID-19 and supply chain disruptions, China's automobile sales have declined for four consecutive quarters recently. However, forecasts suggest double-digit growth will resume from the second half of this year.
The Chinese central government reduced the acquisition tax on low-carbon passenger cars by 50% in May to encourage sales of new energy vehicles. Local governments are also increasing subsidies for car purchases.
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