China's output of new energy vehicles hit 617,800 units in July, up 117.3% from a year earlier and also a 4.5% increase from a month earlier, the China Association of Automobile Manufacturers said on Aug. 11.
New energy vehicles refer to pure and hybrid electric vehicles.
NEV sales hit 593,000 units in July, up 118.8% year on year but slightly down from earlier, CAAM data showed.
In July, NEVs accounted for 24.5% of total vehicle sales in China. This marks the fifth consecutive month that NEV’s share of the total vehicle sales market has exceeded 20%, according to calculations.
Output and sales volume of total NEV in the first seven months of 2022 reached 3.28 million and 3.2 million units, respectively, 118% and 116.1% year on year, according to data from CAAM.
That was reflected in July sales, which demonstrated that the purchase tax cut for certain fuel passenger cars had little effect on electric vehicle sales. July and August used to be the slow time for auto sales.
The China Passenger Car Association increased its forecast for electric passenger car sales in 2022 to 6 million units from 5.5 million units previously at the end of last year.
The CPCA also expected its forecast to increase further early in the fourth quarter.
Total electric vehicle sales in China will be 6.5 million units in 2022 based on expectations of strong growth in the months to come, the CPCA said.
CPCA counts electric vehicles among passenger cars, buses, or other commercial vehicles.
Fast growth is expected to continue for vehicle output and sales in China in the following months, as automakers' production is recovering from the impacts of the pandemic and a bucket of incentivization policies are also driving up vehicle purchases, the sources said.
Related infographic: China’s EV explosion to stay on course
Lithium price, battery output
Chinese lithium chemicals prices, which are essential ingredients for the power battery used in electric vehicles, are likely to remain high in the coming months as demand increases with backing from high prices for raw materials, sources said.
The Chinese lithium salts prices have recently gained slightly as the market maintained the bullish trend.
On a DDP China basis, battery-grade lithium carbonate Yuan 480,500/mt ($71,290/mt) Aug. 11, to give a rise Yuan 3,500/mt on the week and Yuan 10,400/mt on the month.
China's power battery output, the key consumer of battery metals, hit a record 47.2 GWh in July, up 172.2% on the year and 14.4% on the month, according to separate data from the China Automobile Battery Innovation Alliance.
