Major growth predicted for new energy cars worldwide

At the forefront of the low-carbon transition, the new energy vehicle industry has become a global focus and a mainstream force poised for unprecedented growth opportunities, experts said at an industry congress.

The global automotive industry must advance full electrification to achieve more than 50 percent market share of NEVs by 2035 to meet schedule, said Wan Gang, president of the China Association for Science and Technology, at the 2024 World New Energy Vehicle Congress.

Wan, also president of the congress, made the remarks in Haikou, Hainan province, at the end of September and highlighted the event's aim to unite the global auto industry, strengthen cooperation and promote the sustainable development of NEVs toward carbon neutrality.

Xin Guobin, vice-minister of the industry and information technology, said the target of 50 percent market share for NEVs remains challenging, requiring global cooperation in innovation, policy coordination and the building of a secure, efficient and inclusive supply chain system.

China's rapid NEV growth supports global electrification, meets consumer demand and contributes significantly to climate action and the green transition, he added.

From January to August, global sales of NEVs in major countries surpassed 10 million units, accounting for 18 percent of total vehicle sales, 3 percentage points higher than same period of 2023.

China's NEV industry is taking a leading role in promoting a green, low-carbon global economic transformation. In the first eight months, more than 7 million units of NEVs were sold in China, up 30.9 percent year-on-year and accounting for 37.5 percent of the country's total car sales.

In the past three months, the market share of new energy passenger vehicles in retail sales has exceeded 50 percent, achieving a breakthrough, according to Xin.

The market is far from being overcapacity. Wan said that China had 340 million vehicles by the end of 2023, about 240 units per 1,000 people, much lower than in developed countries, indicating significant growth potential.

Meanwhile, in the past decade, nearly 100 million people escaped poverty and their primary aspiration is to own a car, highlighting the vast market potential and dispelling concerns about overcapacity, Wan added.

He emphasized that infrastructure is crucial for NEV adoption. By the end of 2023, China had 2.72 million public charging stations, 5.87 million private ones and 3,567 battery-swapping stations, providing a foundation for NEVs' widespread adoption.

Mary Warlick, deputy executive director of the International Energy Agency, praised China's rapid progress in the new energy sector and its contributions to global carbon reduction at the congress.

She urged countries to stay open and collaborate with China to tackle climate change and advance the green transition.

Wan also advocated for a fair and transparent global environment for automotive trade and investment, stressing the importance of strengthening communication and cooperation ties.

Jochen Goller, president and CEO of BMW Group Region China, said an open market is a key driver of innovation. BMW aims to work together with others to cultivate an environment for innovation, drive industry growth and create shared prosperity.

BMW has been in China for 30 years, benefiting from free trade and open policies, Goller said. From an office in Beijing in 1994 with a few employees, the German automaker now has around 30,000 staff, two joint ventures, four research and development centers, and more than 600 dealerships across China.

BMW will continue to focus on a fully electric future while maintaining an open market and technology approach, recognizing that global markets vary and require tailored technologies, Goller added.

Volkswagen Group CEO Oliver Blume said China has emerged as the epicenter of the automotive industry's future. The Germany's largest automaker is celebrating its 40th anniversary in China, its largest market in the world.

The company aims to be the top international automaker in China by 2030, with its "in China, for China" approach, emphasizing a commitment to becoming integral to the domestic industry's ecosystem.

Zhu Huarong, chairman of Changan Automobile, stated that countries should increase market openness and that global automotive brands should enhance cooperation to promote the globalization of the auto industry. A public, fair and transparent market environment can better aid the high-quality development of the global auto sector, he added.

Geely Auto CEO Gan Jiayue said that some countries and regions are raising tariffs and setting technical standards to limit the adoption of Chinese NEVs. The growing uncertainty and risks from trade protectionism are concerning.

Gan added that the European Union's increased tariffs on Chinese electric vehicles will harm Europe's own interests and hinder economic growth between China and Europe.