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China NEV sales to grow over 40% each year in next 5 years -industry body

Credit: REUTERS/ALY SONG

China's new energy vehicle (NEV) sales are expected to grow more than 40% each year in the next five years, a senior official at the China Association of Automobile Manufacturers (CAAM) said on Friday.

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SHANGHAI, June 18 (Reuters) - China's new energy vehicle (NEV) sales are expected to grow more than 40% each year in the next five years, a senior official at the China Association of Automobile Manufacturers (CAAM) said on Friday.

Fu Bingfeng, executive vice chairman of CAAM, made the remarks at a conference held by the industry body in Shanghai.

Fu's presentation showed that CAAM forecasts sales of NEVs, including battery electric, plug-in hybrid and hydrogen fuel cell vehicles, to hit 1.9 million units this year and 2.7 million vehicles in 2022.

NEV makers, such as Tesla Inc TSLA.O, Nio Inc NIO.N, Xpeng Inc XPEV.N and BYD 1211.HK, are expanding manufacturing capacity in China, encouraged by the government's promotion of greener vehicles to cut pollution.

China could extend tax exemptions on NEV purchases beyond 2022 to support development of the sector, Wan Gang, a high-ranking government industrial policy adviser who is often referred to in state media as China's "father of EV", said at the same CAAM conference.

(Reporting by Yilei Sun and Tony Munroe; Editing by Muralikumar Anantharaman)

((Y.Sun@thomsonreuters.com; +86 10 66271262; Reuters Messaging: y.sun.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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