The CPCA estimated that China's passenger new energy vehicle wholesale volume reached about 900,000 units in January, up 1% year-on-year but down 42% from December. Demand has been pressured by the start-of-year slow season, a 5% additional purchase tax cost, and uncertainty around the transition of vehicle trade-in subsidies, as noted in a report from CNEV Post. Market leader BYD sold 210,051 NEVs in January, down 30.11% year-over-year and 50.04% month-on-month, as per data released on February 1.
GM, which had been the most ambitious among all U.S. automakers with plans to replace internal combustion engines, said in its filing with the Securities and Exchange Commission late Thursday that the $6 billion in charges includes non-cash impairments and other non-cash charges of about $1.8 billion as well as supplier commercial settlements, contract cancellation fees, and other charges of approximately $4.2 billion.
Tesla Model Y demand in China is through the roof, and new delivery dates show the company has already sold out its allocation of the all-electric crossover for 2025. The Model Y has been the most popular vehicle in the world in both of the last two years, outpacing incredibly popular vehicles like the Toyota RAV 4. In China, the EV market is substantially more saturated, with more competitors than in any other market.
Tesla has made a major production announcement at its Chinese production facility, Giga Shanghai. The change of plans comes right after the company announced its strongest quarter in terms of deliveries in its history. On Monday, Tesla China Vice President Grace Tao announced that the production facility would begin ramping up manufacturing in preparation for an even stronger Q4. China is an extremely robust market for electric vehicles, and Tesla routinely delivers strong numbers in the sector.
By some counts, there are over 100 electric vehicle (EV) companies in China. People who watch the industry closely believe that only a very small number will survive. Those in trouble have even stopped paying their suppliers. The argument about the future of Chinese car companies is simple. Government policy helped almost all these companies launch into the world's largest market for EVs.
China has now crossed a massive benchmark in the electric-car race: battery-powered vehicles are now cheaper than their gas counterparts. In the U.S., by contrast, EVs still face a steep premium; roughly $14,000 on average, according to new data from JATO dynamics, an automotive data analytics firm. Dan Sperling, founding director of the UC Davis Institute of Transportation Studies, told Fortune he thought the $14,000 figure was overestimated - but conceded that there was a strong, real gap.
