China expects automobile industry to remain in top gear

China is optimistic about the growth momentum of the automobile industry this year and sees its new energy vehicle sales growing 20 percent year-on-year in 2024, said the country's top industry regulator on Friday.

Xin Guobin, vice-minister of industry and information technology, said that based on industry estimates, both the sales and production of automobiles will be able to achieve "stable growth" in 2024 and the momentum of new energy vehicle is expected to sustain this year. 

Vehicle sales this year is likely to stand at 31 million units, up 3 percent year-on-year, while new energy vehicle sales will grow 20 percent year-on-year to 11.5 million units, Xin said at a State Council press conference on Friday, citing data compiled by industry associations.

"Though the figures are based on preliminary estimates of industry associations and companies, we believe it is basically reliable," Xin said.

According to him, more efforts will be made to exempt vehicle purchase tax, drive electrification for public transportation, as well as promote new energy vehicle to rural areas to actively expand new energy vehicle consumption.

Xin emphasized that in 2023, China's automobile industry gained momentum with the vehicle sales and production exceeding 30 million units for the first time and new energy vehicle sales and production continuing to lead the world. 

"The export of automobiles hit 4.91 million units last year, up 57.9 percent year-on-year, and it is expected to top the world," he added.