Chinese media Observer Network reported on the 15th, publishing an article titled 'Under the "assist" of the Middle East energy crisis, 2 out of 3 new cars in China are new energy vehicles.'

The article first reported that, according to a summary by the China Passenger Car Association (CPCA), retail sales of new energy vehicles (NEVs), including battery electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs), in the passenger car market from the 1st to the 7th reached 152,000 units, an 8% increase year-on-year. It also noted that the NEV penetration rate, which refers to the proportion of NEVs in total passenger car sales, reached a record high of 66.7%, and that in May, for the first time, no internal combustion engine vehicles ranked in the top 10 best-selling cars domestically.

Furthermore, it introduced that Hong Kong media South China Morning Post (SCMP) reported that "this strong result was achieved amid the reduction of NEV subsidies since the beginning of the year," and quoted Eric Han, Senior Manager at Shanghai consulting firm Suolei, as saying, "The Middle East conflict has provided an unexpected tailwind for Chinese NEV manufacturers, and gasoline cars have lost momentum."

According to SCMP, since the war between the US/Israel and Iran began on February 28, consumers concerned about rising fuel costs are increasingly moving away from gasoline cars. Chinese NEV manufacturers accelerated the launch of new models at the Beijing Auto Show in April. Among them, vehicles equipped with high-performance batteries, intelligent cockpits, and driving assistance functions are expected to spark a new buying boom among consumers who want to try out new technologies.

The article stated that "by 2025, Chinese NEVs accounted for approximately 70% of global NEV sales. Meanwhile, international brands such as Volkswagen and Toyota are lagging in the EV shift and continue to lose market share. According to the CPCA's summary, the total market share of foreign car manufacturers in China in April was 30.3%, a decrease of 9.5 percentage points compared to the first quarter (January-March)." (Translation/Editing by Yanagawa)