Top

China Q2 EV Sales Almost Doubled YoY, Despite a Weak Quarter

  • BYD led China’s EV market, followed by Wuling, Tesla, Chery and GAC Group.
  • Top 10 EV models in China accounted for more than 44% of the country’s total Q2 2022 EV sales.
  • One in four cars sold in China will have an electric powertrain by the end of 2022.

New Delhi, Beijing, London, San Diego, Buenos Aires, Hong Kong, Seoul – September 15, 2022

China’s Q2 2022 passenger electric vehicle (EV) sales* almost doubled from that a year ago, despite the quarter being a weak one, according to Counterpoint’s Global Electric Passenger Vehicle Model Sales Tracker. Pure battery electric vehicles (BEVs) accounted for almost 78% of total EV sales, while the remaining were plug-in hybrid electric vehicles (PHEVs). BYD remained the market leader, followed by Wuling and Tesla. Emerging brands, such as Xpeng Motor, Neta (Hozon Auto), Leapmotor, Li Auto, NIO and AITO (Seres), proved to be strong competition for the top players.

Commenting on the market dynamics, Senior Analyst Soumen Mandal said, “China is a mature EV market but it still has immense potential to expand further. Fresh COVID-19 cases from March 2022 onwards and the supply chain crisis due to the Russia-Ukraine war have adversely affected the Chinese automotive industry. Had it not been for these factors, the China EV market would have achieved sharper growth. The price hike by most Chinese automakers during March, followed by strict COVID-19 lockdowns during April and May around Shanghai, restricted growth in the domestic automotive industry. Although better results are expected in H2 2022, the economic downturn, energy crisis, supply chain bottlenecks and rising geopolitical tensions may hinder market growth, especially for EVs.”

Market summary: 

BYD Auto: BYD, which has been the market leader in China since mid-2021, sold more than 353,000 EV units in Q2 2022. The automaker’s BEV segment grew 229% YoY while its PHEV division expanded 312% YoY. The company’s decision to discontinue the production and sales of pure ICE vehicles since March 2022 allowed it to focus on electrified vehicles and become the global EV leader.

Wuling: The SAIC-GM-Wuling joint venture has been very successful in China. Wuling’s Hongguang Mini EV has been the flag bearer for the brand since the end of 2020 and has been China’s best-selling EV model for more than the past 18 months. Wuling’s EV sales grew almost 16% YoY during Q2 2022.

Tesla: The pandemic-related lockdowns in Q2 2022 severely hurt Tesla’s business. Production ramp-ups were almost completely halted in April and May during which its sales in China fell 49% YoY to reach the lowest number for the automaker since 2020. The situation improved only after production resumed to full capacity in June 2022. The company ended Q2 2022 on a positive note with 10% YoY growth in sales.

China EV market in Q2 2022 Counterpoint

Commenting on the EV infrastructure development, Associate Director Brady Wang said, “Direct subsidies to consumers have played a big role in increasing EV adoption across China. Now, as the government plans to phase out direct subsidies to consumers, the country’s dual credit policy for EV production is likely to play an important role. Moreover, many laws that were implemented to save China’s automotive industry from the onslaught of foreign OEMs are being lifted as domestic brands have matured and are now even penetrating other markets, such as Europe and Southeast Asia. Moreover, China’s component industry, especially the battery supply chain, has been strong and is expected to maintain its global dominance. Apart from the increased EV sales and a strong battery supply chain, China also has a good charging network and domestic players are currently focusing on developing proper battery recycling facilities. China is at the forefront in every aspect of the EV ecosystem and has become the leading global figure in the EV space.”

The top 10 EV models in China accounted for more than 44% of the country’s total EV sales in Q2. Wuling’s Hongguang Mini EV remained the undisputed best-selling model for the quarter followed by BYD’s Song and Tesla’s Model Y. However, in June 2022, the Model Y overtook the Hongguang Mini EV to become the top-selling model. China’s EV market is dominated by domestic brands, along with Tesla. Six of the top 10 models were from BYD, among which the BYD Yuan Plus and BYD Dolphin were released after Q2 2021.

Top 10 EV Models in China Counterpoint
Source: Counterpoint Global Passenger Electric Vehicle Model Sales Tracker, Q2 2022

Commenting on the market outlook, Research Vice President Neil Shah said, “EV sales in China constituted 15% of the total passenger vehicle sales in 2021. According to Counterpoint’s Global Passenger Car Forecast, EV sales are expected to cross the 6-million-unit mark by the end of this year. The market will likely remain subdued due to the ongoing chip crisis, COVID-19 outbreaks, energy crisis, geopolitical tensions and rising consumer inflation. However, we believe one in four cars sold will have an electric powertrain by the end of 2022.”

*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands/companies.

*Under electric vehicles (EVs), we are considering only battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Hybrid electric vehicles and fuel cell vehicles (FCVs) are not included in this study.

The comprehensive and in-depth Global Electric Passenger Vehicle Sales Tracker, Q1 2018-Q2 2022 is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Soumen Mandal

The Branding Source: New logo: Twitter

Neil Shah

The Branding Source: New logo: Twitter  

Brady Wang

The Branding Source: New logo: Twitter

Counterpoint Research

The Branding Source: New logo: Twitter

press@counterpointresearch.com

 

Related Reports:

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Apple Snack Pack

PREMIUM

Understanding iPhone

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.