NEV buying season to charge up rural sales

China's rollout of a nationwide "new energy vehicle consumption season" across counties and townships will accelerate green mobility adoption, boost domestic consumption and advance rural development, analysts said on Wednesday.

Scheduled from July to December this year, the campaign aims to mobilize the efforts of local governments, industry associations and businesses, said an online notice issued by the Ministry of Commerce on Tuesday.

Local governments will implement vehicle trade-in programs and establish specific zones for them at venues associated with the NEV consumption season.

Marketable NEV models will be further introduced to better cater to the diverse needs of county and township households, said the notice.

While large cities have all seen strong NEV penetration in recent years, lower-tier markets — comprising vast rural and semi-urban areas — remain relatively underserved, said Ji Xuehong, a professor at the School of Economics and Management at Beijing-based North China University of Technology.

By directing attention and resources to these places, the government can better address regional imbalances in NEV rollouts and expand the consumer base for China's burgeoning electric vehicle industry, said Ji.

Sharing similar views, Zhu Junyu, a researcher at the China Center for Information Industry Development under the Ministry of Industry and Information Technology, said that currently, automobile ownership among rural residents in China remains relatively low, leaving significant room for electrification.

"NEVs, with their lower operating costs compared to traditional gasoline-powered cars and the support of relevant policies, have significant growth potential in rural markets," said Zhu, adding that boosting the rural NEV market requires aligning vehicles with consumer needs and enhancing products, infrastructure and financial support.

This year's consumption season features a wide range of vehicle models that better cater to the needs of rural markets. These include plug-in hybrid off-road vehicles and new energy commercial vehicles, according to information released by the MIIT.

The MIIT said a total of 124 NEV models — including both EVs and hybrids — are included in the promotional campaign this year, featuring vehicles from manufacturers such as BYD, Geely Auto and Xpeng Inc, as well as Tesla's Model 3 and Model Y.

The lineup also includes selected pickups and light trucks that are suitable for both household and commercial use in rural regions, offering consumers across different income levels a broader range of choices.

Local governments are also encouraged to develop innovative consumption scenarios and accelerate the construction of essential infrastructure such as NEV parking lots, charging stations and after-sales service centers, said the Ministry of Commerce.

China's NEV production surged 45.2 percent year-on-year to nearly 5.7 million units in the first five months, with sales up 44 percent on a yearly basis to 5.61 million units, said the Beijing-based China Association of Automobile Manufacturers.

The cumulative number of charging infrastructure facilities nationwide had reached almost 13.75 million by the end of March. This includes 3.9 million public charging points and 9.85 million private installations for NEVs, said the National Energy Administration.