Tesla’s China Manufacturing Will Drive Electric Vehicle Sales in China by 40% in 2021

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Tesla’s China Manufacturing Will Drive Electric Vehicle Sales in China by 40% in 2021

The China Association of Automobile Manufacturers (CAAM) said Friday that sales of new energy vehicles (electric, hybrid, and fuel cell) are projected to grow by 40% in 2021, to 1.8 million units. Not least this will happen thanks to the efforts of Tesla, which is expanding the production of electric cars in China.

Tesla
Tesla

Also, in the growing demand for electric cars and cars in general, one should pay tribute to the efforts of local authorities, which invest in infrastructure, create favorable conditions for the promotion of new energy cars, and generally support the growth of the country’s economy.

Car sales in China peaked in 2017. Then, a total of 28.88 million cars were sold. Since then, this figure has decreased annually and in 2019 amounted to 25.76 million units. In 2020, the association expects sales to fall by about 2%, to 25.3 million vehicles. Thus, in 2021, for the first time in four years, sales growth is projected, which will be about 4% per year or 26.3 million vehicles.

Sales of electric vehicles in China, as we can see from these data, compared to sales of all types of vehicles in percentage terms, will grow by an order of magnitude, which reflects the essence of the changes taking place in the world.

In November, car sales in China rose by 12.6% to 2.77 million units. Of these, sales of passenger cars increased by 11.6%, to 2.29 million units, and commercial – by 18%, to 470 thousand units. New energy vehicle sales doubled year-over-year to 200,000 and are projected to grow 8% to 1.3 million for all of 2020.

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CAAM and others predict new car sales in China could surpass 30 million by 2025.