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 roughly 47.6% of new passenger car sales according to CAAM. By comparison, Europe sat near 22% and the United States at around 10% combined BEV+PHEV.
BEV vs PHEV: PHEV is Accelerating Faster
Pure BEVs took roughly 27.5% of 2024 sales, while PHEVs and extended-range EVs (EREVs) took 20.1%. 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 deployed over 8 million charging points by end-2024, by far the world's largest network.
2025 Forecast
CAAM and CPCA forecast NEV share above 55% for full-year 2025, with the BEV/PHEV split likely settling near 30/25. New entrants like Xiaomi (SU7), continued cost reductions, and tier-2/tier-3 city expansion are the major growth vectors.
Compare China's NEV ramp against the UK, Germany and US on the cross-market EV adoption chart.