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Introduction: According to public information from the China Passenger Car Association, in July, sales of passenger vehicles reached 1.72 million units, with 878,000 of those being new energy vehicles, resulting in a penetration rate of 51%.

Wang Chuanfu's prediction comes true

As early as March this year, Wang Chuanfu, CEO of BYD, predicted that the penetration rate of new energy vehicles would exceed 50% within the next three months, replacing traditional gasoline-powered vehicles as the mainstream in the automotive market.

This prediction has now been verified, marking a historic milestone that is 11 years ahead of the original national planning target of 2035.

BYD's accurate prediction is closely tied to its strong market share.

It can be said that BYD played a significant role in China's new energy vehicle penetration rate exceeding 50%, contributing more than one-third of the sales.

With such a significant sales volume, BYD's predictions about market trends are naturally more accurate.

Why is the sales momentum of new energy vehicles so strong?

1. Policy incentives: Scrap old vehicles and replace them with new energy vehicles, with a subsidy of 20,000 yuan

The government has introduced a policy to scrap old vehicles and replace them with new ones, offering a subsidy of 20,000 yuan for new energy vehicles and 15,000 yuan for gasoline-powered vehicles with an engine displacement of 2.0 liters or less.

Promoting the elimination and replacement of old vehicles and accelerating the popularization of new energy vehicles

Corresponding policies and measures have been introduced and followed up in various regions

Beijing has introduced policies to support used car dealerships, offering a 0.5% reward for sales exceeding 5 million yuan and implementing policies to scrap and replace old vehicles;

Shanghai has quickly launched an application channel for the trade-in policy to facilitate vehicle replacement

Jilin is actively addressing the issue of long processing times for vehicle deregistration certificates to support the trade-in policy

The release of consumer potential driven by policies has achieved remarkable results

In Beijing, it is expected that used car dealership sales will exceed 10 billion yuan in the second quarter

In Shanghai, over 6,000 applications were received within 15 days from April 10th to 25th (6,184 people applied for subsidies for trading in old cars for new ones, and 4,221 applied for subsidies for trading in old cars for new energy vehicles)

2. Technological advancements: battery technology and smart technology

Continuous innovation in battery technology is one of the key factors. The significant increase in driving range has enabled new energy vehicles to meet more daily travel needs of consumers. Nowadays, some new energy vehicles can even match or exceed the driving range of traditional gasoline-powered vehicles, addressing consumers' concerns about range anxiety.

The widespread application of smart technology in new energy vehicles has also attracted many consumers. Features such as autonomous driving assistance and intelligent infotainment systems bring a brand-new driving experience to users.

Traditional gasoline-powered vehicles are difficult to compete with the intelligence and luxury feel of newly emerging electric vehicles, appearing outdated by a generation.

In July, sales of conventional gasoline-powered vehicles were 840,000 units, a year-on-year decrease of 26% and a month-on-month decrease of 7%;

In July, sales of new energy vehicles were 878,000 units, a year-on-year increase of 36.9% and a month-on-month increase of 2.5%.

Even Japanese cars, which were strong in previous years, have seen disappointing sales, while Korean and French cars, which were already less prominent, are struggling even more.

With the launch of more efficient, intelligent, and comfortable new energy vehicles, the Chinese automotive market has undergone structural changes. Chinese new energy vehicles have gained a technological advantage over gasoline-powered vehicles.

Conclusion

We have reason to believe that with continued policy support and technological innovation, the development of new energy vehicles will be unstoppable.

Chinese automakers will occupy a more important position in the global new energy vehicle market, not only continuing to thrive in the domestic market but also shining in overseas markets, demonstrating the strong strength of Chinese new energy vehicles to the world.

At the same time, the development of the new energy vehicle industry will also drive the prosperity of related industrial chains, bringing new opportunities and challenges to everything from battery manufacturing and smart technology research and development to charging infrastructure construction and after-sales services.