New energy car sales likely to hit 80%-90% of 2019 level

The sales volume of China's new energy cars this year is likely to reach 80 percent to 90 percent that of the 2019 level, largely hampered by the novel coronavirus outbreak and the consequent economic downward pressure, according to a latest report by Ries Strategy Positioning Consulting.

While the EV sales volume plummeted 56 percent in the first quarter compared with same time last year, a rebound in economic activities and the localization of Tesla Inc's Model 3 in China would help fend off negative impacts and revive sales in the rest of the year, said Liu Kun, a senior consultant at Ries.

He forecast the pure battery EV to take a predominant position by 2025, squeezing the share of the plug-in hybrid EV to less than 10 percent. This is due to both the significant improvement in battery performance and an expected slash in battery cost.

While Chinese consumers are largely perceived to be among the most enthusiastic about battery EVs, local production of Tesla has posed grave challenges to domestic players like Nio, Weltmeister and XPeng. Data showed that sales volume for Tesla in March was eight times that of Nio, which put itself in square competition with Tesla.

Liu believed emerging Chinese brands should seek opportunities in the class of mini and compact cars. Also, established automakers, domestic and foreign alike, should considering adopting new brands for their electric vehicle offerings to win over the minds of customers.