In a historic milestone, sales of new energy vehicles (NEVs) in China surpassed those of conventional automobiles for the first time in July, comprising more than half of all passenger car sales, according to the China Association of Automobile Manufacturers (CAAM).

In July, a total of 1.595 million passenger cars were sold, with NEVs accounting for 853,000 units, marking a significant increase from 780,000 NEVs sold in July 2023.From January to July of 2024, NEV production in China reached 5.914 million units, reflecting a 28.8% increase compared to the same period last year, while sales rose by 31.1% to 5.934 million units. BYD led the NEV market with retail sales of 311,800 units in July, totaling 1,703,300 units from January to July, a 22.7% increase year-on-year.

China also exported 708,000 NEVs during the first seven months of 2024, up 11.4% from the previous year, with Europe and Southeast Asia being the primary destinations. As electric vehicles gain traction in Southeast Asia, Chinese manufacturers are expanding their production capabilities in countries like Indonesia, Malaysia, and Vietnam.

In Vietnam, BYD has established a significant presence, recently opening its first sales showroom and planning to build a factory for EV production, although those plans have faced delays due to the global EV market slowdown.

Indonesia aims to produce 600,000 EVs by 2030 through partnerships with Chinese companies, while Malaysia is collaborating with Geely to develop an automobile hub with a production capacity of 500,000 vehicles by 2035.Southeast Asian countries are implementing various incentives to promote EV adoption, including tax exemptions and subsidies for EV buyers, further enhancing the region's attractiveness for foreign investment in the electric vehicle sector.