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New Energy Vehicles Arrived in the Cold Window of "Falling" and Welcome to a New Window of Development
In mid-October, the release of third-quarter performance previews by listed automotive companies revealed a positive trend in new energy vehicle sales. According to data from the China Automobile Industry Association (CAIA), cumulative production and sales of new energy vehicles from January to September increased by 40.2% and 37.7% year-on-year, respectively. Henan Province, a key player in the passenger car industry, saw Yutong Bus achieve a 13.57% and 10% year-on-year growth in September alone.
The industry is optimistic that the new energy vehicle sector is entering a phase of technological maturity and improved industrial structure after the initial wave of policy support. In September, new energy vehicles experienced double-digit growth in both production and sales, with production reaching 77,000 units and sales hitting 78,000 units—up 79.7% and 79.1% compared to the same period last year. Pure electric vehicles led the way, with production and sales at 64,000 units each, up 85.2% and 83.4% respectively. Plug-in hybrids also saw strong growth, with 13,000 and 14,000 units produced and sold, an increase of 57.6% and 61.9%.
From January to September, total production reached 424,000 units, while sales totaled 398,000 units. Pure electric vehicles accounted for 348,000 and 325,000 units, showing a 51.6% and 50.1% year-on-year increase. Plug-in hybrid vehicles saw more modest gains, with production and sales rising by 4.0% and 0.6%, respectively.
Major manufacturers in Henan, including Yutong Bus, reported significant growth. In September, Yutong’s production rose by 13.57% to 7,229 units, while sales increased by 10% to 7,060 units. Other major brands such as Guangzhou Auto, SAIC, and Geely also enjoyed strong sales during the month.
Industry experts believe that the shift in policy and the gradual normalization of the market have helped the sector move into a steady growth phase. The Henan Automotive Industry Association noted that the province is accelerating infrastructure development, aiming to complete 1,000 centralized charging stations and 100,000 decentralized ones by 2020.
Despite the positive trends, the current sales volume of 398,000 units still falls short of the 700,000-unit target set at the beginning of the year. However, Guosen Securities predicts that with continued growth in commercial vehicle production and stable passenger car sales, the annual total could reach 670,000 units. Given the expected stronger fourth-quarter performance, the 700,000-unit goal may still be achievable.
Recent favorable policies, including the planned ban on fuel vehicle sales and the implementation of the "double-integration" system, are seen as major drivers for the new energy vehicle industry. The Ministry of Industry and Information Technology has started research on phasing out conventional vehicles, signaling a long-term shift toward cleaner alternatives. Additionally, the new "average fuel consumption and new energy integration" policy will push automakers to increase their new energy vehicle offerings, promoting sustainable development.
With more models being added to the national list of recommended new energy vehicles, the sector is poised for another surge in demand. Companies like Zhengzhou Haima are investing heavily in shared mobility projects, while cities in Henan are launching new energy initiatives. Combined with government guidance and growing consumer interest, the future of new energy vehicles looks promising.