China EV sales, production continue to grow

By Yoke Wong
Published: Monday, 18 September 2017

Electric vehicles sales and production in China continued to grow in the first eight months of 2017.

New energy vehicles sales and production in China continued to grow by more than 30% year-on-year (y-o-y) between January and August this year, the data from the China association of automobile manufacturers (CAAM) showed on 17 September.

346,000 units of new energy vehicles were produced over the first eight months of the year, up 33.5% y-o-y while sales also increased by 30% to 320,000 units during the same period.

CAAM also announced on the ministry of industry and information (MIIT) website that electric vehicles (EV) production also jumped by 45% y-o-y to 284,000 units between January-August, while sales increased to 260,000 units, up 43.5% y-o-y. 

In contrast, hybrid car sales declined nearly 3% y-o-y to 59,000 units while output also dropped 7.5% y-o-y to 62,000 units over the period.

Favourable government policy to promote EVs in China, EV sales – a key driver in lithium-ion battery minerals prices – is widely expected to increase during 2017.

Lithium carbonate and hydroxide prices tracked by Industrial Minerals have increased substantially over the past two years on the back of higher demand from the EV sector.

Lithium carbonate prices rose again last week  after Xin Guobin, the Chinese vice-minister of industry and information technology, said in a forum hosted in Tianjin that China is working on a timetable to ban petrol and diesel cars.

For more information on the prices of raw materials for batteries see IM's weekly Battery Price Report.

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