What does new energy vehicle penetration rate exceed 30% mean?

The retail penetration rate of new energy vehicles exceeds 30%, which means that new energy vehicles have made a comprehensive breakthrough in the sales of economic and medium and large new energy vehicles, and also reflects the good performance of all kinds of new energy vehicles in the market. The improvement of this index also has a great boost for new energy vehicle enterprises.

The retail penetration rate of EVs exceeded 30 percent for the first time in September, reaching 31.8 percent, according to data released by the National Passenger Car Market Information Association. What does the retail penetration rate of new energy vehicles exceed 30% mean, what impact does it have on new energy vehicle enterprises, and what impact will it bring to the fuel vehicle market?

The retail penetration rate of new energy vehicles is an important market indicator, which refers to the proportion of new energy vehicle sales in the total vehicle sales in a certain period. The index of new energy vehicles exceeds 30%, which means that new energy vehicles have made a comprehensive breakthrough in the sales of economic and medium and large new energy vehicles, and also reflects the good performance of all kinds of new energy vehicles in the market.

Specifically, in cities with purchase restrictions, the retail penetration rate of new-energy vehicles increased significantly, and the sales ratio of pure electric vehicles increased from 6% in 2019 to 30% in September this year. In cities without restrictions, the share of pure electric vehicle sales in big and medium-sized cities was about the same, rising to 22 percent in September. Although the retail penetration rate of the county and township markets is not small, the proportion of fuel vehicle sales is still relatively high, and the future development potential of new energy vehicles in small and medium-sized cities and counties and townships is broad.

The increase of retail penetration rate of new energy vehicles has no small boost for new energy vehicle enterprises. Especially with the expansion of the market, the volume and scale of new energy vehicles have increased significantly. At the same time, the increase of retail penetration of new energy vehicles will also have a great impact on the fuel vehicle market, resulting in a decline in the size of the fuel vehicle market, further improvement of the market competitiveness of new energy vehicles, and accelerate the arrival of the era of electric popularization.
It is worth noting that in 2021, the sales volume of traditional fuel vehicles of joint venture brands decreased by 18%, sales volume of traditional fuel vehicles of independent brands decreased by 7%, and sales volume of traditional fuel vehicles of luxury brands decreased by 9%. The advantages of joint venture brands in the fuel vehicle market gradually weakened. Independent brand new energy vehicles will play a larger role in replacing joint venture brand fuel vehicles, promoting changes in the market pattern.

At the same time, it should be noted that the retail penetration rate is not a simple linear rise, but will fluctuate, which is closely related to the maturity of new energy vehicle technology, the change of consumer psychology and the degree of infrastructure improvement. With the fluctuation of oil prices, electric vehicles under high oil prices have obvious cost-performance advantages. However, while the sales of new energy vehicles are growing rapidly, the insufficient level of charging facilities also leads to the difficulty of charging, which makes it difficult for some consumers to choose electric vehicles at ease.

In addition, at present, the sales of new energy vehicles in our country mainly rely on the high-end and low-end, and the middle model is not ideal. In fact, the mid-range model market is the largest increase in future new energy vehicles, but this target user group is also the most selective. If new energy vehicle products are not outstanding enough to meet the demand for multi-scene vehicles, it is difficult to boost the mid-end model market.

In the future, as the new energy automotive retail permeability increases unceasingly, new energy vehicles will undoubtedly keep higher heat, prompting brands in the supply chain, product fast charging technology, charging infrastructure for electric efficiency, and marketing spend more energy, only to do big, new energy automobile market to a larger market share.

Web: https://www.forthingmotor.com/
Email：dflqali@dflzm.com
Tel：0772-3281270
Phone: 18577631613
Address: 286, Pingshan Avenue, Liuzhou, Guangxi, China