The steep decline in China's NEV sales continues and it is accelerating. Preliminary results for October indicate 48 % fewer deliveries than in October 2018; even October 2017 was higher. Read full article here.
Purchase incentives for NEVs have been cut before, but this time, the usual recovery after 2-3 months did not materialise. The prolonged crash was unlikely a part of the plan. The MIIT, setting the course for the NEV industry, is determined to deflate a sector that showed signs of overheating and is being overcrowded by new-comers with uncertain viability.
Apart from subsidy cuts, new barriers for entry have been established, limiting the number of manufacturing subcontractors, demand a minimum of R&D funds and production capacity. The market leaders post big losses in their NEV business and the volume erosion among smaller players with 2-3 years of market presence speaks trouble. The overall Chinese car market has been in decline for 16 consecutive months now, while the sales of NEVs kept growing, at least until June. It is for the strong results from H1 that year-to-date, the balance is still positive. 963 000 NEV passenger cars and LCVs have been delivered from January to October, 19 % more than in the same period last year.