NEVs to account for 50% of total new car sales in 2025

NEVs are expected to see their popularity grow in China, accounting for 40 percent of total new car sales this year and roughly 50 percent in 2025, said Ouyang Minggao, an academician of the Chinese Academy of Sciences.

Last year, NEV sales totaled 9.49 million units in China, making up 31.6 percent of new vehicle sales, according to statistics from the China Association of Automobile Manufacturers.

Ouyang, also vice-president of the China EV 100, said the figure is expected to reach 70 percent in 2030 in China, with their annual sales reaching around 20 million units a year in the country.

He said that electrification has made it easier to produce vehicles, resulting in fierce competition, and smart functions are more important as they can help carmakers distinguish themselves from others.

Globally, NEV sales are estimated to reach 40 million units by 2030, accounting for half of total passenger vehicle sales, said Zhang Yongwei, vice-president and secretary-general of the China EV 100.

Despite the promising prospects, Zhang said the demands for NEVs will vary from region to region.

He said Chinese car buyers are now more interested smart features but in some other parts of the world, like Europe and the United States, the customers are concerned about the vehicles' mileages on one charge.

With the first-mover advantage and their fast innovation, Chinese carmakers are expected to seize "several" positions on the list of the world's top 10 carmakers by 2030 as the global automotive market is shifting towards electrification, said Guan Mingyu, a McKinsey partner.