More than half of all vehicles sold in China in July were electric, according to the nation’s passenger car association (CPCA).
China is home to the world’s biggest vehicle market, meaning electrification there is critical to reducing oil demand and meeting global climate targets. The shift to electric drivetrains has already cut China’s demand for transport fuels by 4%, according to an analysis by Lauri Myllyvirta of the Centre for Research on Energy and Clean Air.
While sales of petrol- and diesel-powered cars slumped in July, sales of fully electric vehicles and plug-in hybrids were up 37% compared to a year before. As a result, new-energy vehicles comprised 51% of total sales, according to the CPCA. For context, the International Energy Agency projects that electric models will account for one in five new cars sold globally this year.
China’s rapid move to EVs has been driven by the fact that electric models are in most cases now cheaper than traditional options in the country, according to BloombergNEF.
The country is rapidly transforming itself into “the first major electrostate,” with electricity now accounting for close to a third of final energy consumption, according to nonprofit research group RMI.
