The coronavirus pandemic has hit China’s economy, and machine manufacturers are no exception. In the first six months of this year, the country produced 12.314 million and sold 12.365 million vehicles, which is 11.8% and 12.7% less compared to the same period last year. The decrease was 5% and 4.2%, respectively.

In July, production and sales of cars reached 2.201 million and 2.112 million, down 5.3% and 8.2% from the previous month, but 21.9% and 16.4% more than in the same period last of the year. This fact is proposed to be considered as a gradual recovery of the Chinese economy.

Electric vehicles, or, as they are called in China, “new energy vehicles” showed in July growth of 15.6% YoY in production (100,000 electric cars were produced) and 19.3% in the number of cars sold per month (98,000 pieces). Tesla is still the leader in the electric car market, the production of which, represented by Model 3, reached 12,571 units per month, and sales amounted to 11,014 units. This turned out to be more than the three closest competitors of the company jointly sold in China in July.

It should be said that about a year ago, many governments and local (municipal) benefits for the purchase of electric vehicles were canceled in China. However, the pandemic has forced many of them to return. For example, in many metropolitan areas in China, there is a restriction on obtaining license plates, which is done to reduce traffic, congestion, and pollution. When registering an electric vehicle, this restriction no longer applies. This and other incentives have boosted demand for electric vehicles. At least on a yearly basis.