China was the first major automotive market to cross the 50% NEV penetration threshold in monthly retail figures (CPCA data, several months of 2024). Across the full year 2024, NEVs (BEV + PHEV) reached 47.97% of passenger vehicle retail on CPCA's preliminary count (CPCA figures via CnEVPost, 8 January 2025). By comparison, Europe sat at around a fifth and the United States at around a tenth combined BEV+PHEV.
BEV vs PHEV: PHEV Accelerated Faster in 2024
Pure BEVs took the larger part of 2024 NEV sales, but PHEVs and extended-range EVs (EREVs) grew faster. At BYD, plug-in hybrid sales rose 72% in 2024 against 12% for BEVs (Just Auto). PHEV/EREV growth was the bigger story of 2024, these vehicles avoid range anxiety, charge slower but cheaper at home, and qualify for the same green-plate license benefits in major cities. BYD, Li Auto, AITO and Leapmotor lead the PHEV/EREV space.
Three Drivers Behind the Surge
First, price parity: NEVs are cheaper than equivalent ICE cars in many segments thanks to vertical integration and battery cost declines. Second, license-plate preference: in tier-1 cities like Beijing, Shanghai and Guangzhou, NEV plates are unrestricted while ICE plates require expensive lottery wins. Third, charging infrastructure: China has by far the world's largest charging network.
What 2025 Delivered
CPCA put full-year 2025 NEV retail at 12.81 million units, up 17.6%, a 53.96% penetration of the passenger vehicle market (CPCA figures via CnEVPost, 9 January 2026). The 2024 pattern reversed: BEVs grew 24.4% to 7.88 million, while PHEVs grew 8.8% to 3.40 million and EREVs 6.0% to 1.17 million. New entrants like Xiaomi, continued cost reductions, and tier-2/tier-3 city expansion were among the growth drivers.
Compare China's NEV ramp against the UK, Germany and US on the cross-market EV adoption chart.