China’s wholesale sales of new energy passenger cars reached 571,000 units in June, up from last December’s 505,000 units, according to data released this week by the China Passenger Car Association. Retail sales amounted to 532,000 vehicles. CNEvPost reports that in June, battery-electric vehicles accounted for the vast majority of new energy vehicle (NEV) sales, with wholesale sales of 452,000 units, or 79% of the plug-in pie. Plug-in hybrid vehicles accounted for 119,000 units, or just under 21%.
In terms of retail sales, NEVs captured 27.4% of the new car market in June. That is significantly higher than the penetration rate of 14.6% in June 2021. Local brands accounted for 50.1% of retail, luxury brands 28% and mainstream joint venture brands 4.5%.
Tesla Model Y leads the parade
Tesla has been hampered by Covid-related shutdowns at its factory in Shanghai, but strongly reflected in June, when it sold 78,906 vehicles made in China, surpassing last December’s record of 70,847, according to data released by the CPCA on July 8.
The Model Y led the rise, selling 52,150 units in China in June, up 348.7% from 11,623 units a year ago, making it the best-selling SUV in China for the month. CNEvPost emphasizes that the Model Y beat all other SUVs in China, including plug-in hybrids and those with combustion engines in all price ranges. The BYD Song was in second place with 31,787 cars sold in June, up 122.1% year-on-year. Honda’s popular CR-V sold 24,326 units in June, up 62.9% year over year. Great Wall Motor’s Haval H6, previously the longtime No. 1 on the list, sold 21,040 units in June, down 21.4% from 26,771 units a year earlier, and placed fourth.
Tesla Model 3 Sales Delay
Tesla’s Shanghai plant currently produces the Model Y SUV and the Model 3 sedan, but Chinese customers prefer SUV vehicles. In June, Model 3 sales in China were 25,788 units, up 70.1% from 15,509 units a year ago, and ranked #7 in the top 15 best-selling sedans according to the CPCA. The Nissan Slyphy was number 1 with 45,767 units, while SAIC-GM-Wuling’s Hongguang Mini EV was number 2 with 39,798 units. The BYD Qin sedan finished just ahead of Model 3 with 26,383 units sold.
Tesla is currently planning upgrades to its Shanghai factory, which will increase Model Y production to 14,000 per week from 11,000 per week and Model 3 production from 5,500 to 7,7600 units per week. Those changes to the factory are expected to be completed by August 7. Ultimately, Tesla expects production in Shanghai to exceed 1 million new cars per year.
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