China’s wholesale sales of new energy passenger vehicles reached 571,000 units in June, surpassing last December’s 505,000 units, according to data released by the China Passenger Car Association this week. Retail sales topped 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 plugin 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 up significantly from the 14.6% penetration rate in June 2021. Local brands were responsible for 50.1% of retail sales, luxury brands were 28%, and mainstream joint venture brands were 4.5%.
Tesla Model Y Leads the Parade
Tesla has been hobbled in recent months by Covid-related shutdowns at its factory in Shanghai but bounced back strongly in June when it sold 78,906 China-made vehicles, surpassing last December’s record high of 70,847 according to data released by the CPCA on July 8.
The Model Y led the surge, selling 52,150 units in China in June, up 348.7% from 11,623 units a year ago and making it the best selling SUV in China for the month. CNEvPost emphasizes that the Model Y beat out all other SUVs in China, including plug-in hybrids and those with internal combustion engines at all price points. The BYD Song was in second place with 31,787 cars sold in June, up 122.1% year-on-year. Honda’s hot selling CR-V sold 24,326 units in June, up 62.9% year on year. Great Wall Motor’s Haval H6, which had previously held the #1 spot on the list for a long time, sold 21,040 units in June, down 21.4% from 26,771 units a year earlier, and came in fourth.
Tesla Model 3 Sales Lag
Tesla’s factory in Shanghai currently produces the Model Y SUV and the Model 3 sedan, but Chinese customers much prefer SUV type vehicles. In June, Model 3 retail 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 ranked #1 with 45,767 units, while SAIC–GM–Wuling’s Hongguang Mini EV ranked #2 with 39,798 units. The BYD Qin sedan finished just ahead of the Model 3 with 26,383 units sold.
Tesla is currently planning upgrades to the Shanghai factory that will increase Model Y production to 14,000 per week from 11,000 per week and increase Model 3 production to 7,7600 units a week from 5,500. Those changes to the factory are expected be completed by August 7. Ultimately, Tesla expects production in Shanghai to exceed 1 million new cars a year.
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