(Yicai Global) July 13 -- Industry experts predict new energy vehicles will remain popular in China in the second half of the year after strong sales and higher production in the first six months of the year.
Sales jumped 125 percent to 12.83 million units and output gained 127 percent to 12.89 million compared with a year earlier, according to the latest figures from the China Association of Automobile Manufacturers.
Sales have not been much affected by recent scandals over NEV subsidies, and the market will continue to grow rapidly, said Mr. Jia Xinguang, chief analyst at China Automotive Industry Consulting Development Corp. Expect a wave of 'panic buying' in the second half, especially toward year-end, as the government plans to cut subsidies again next year, he said.
China overtook the US in new energy car sales last year, taking the top spot globally, but the industry has been hit this year by a succession of scandals with some manufacturers accused of having reported falsified sales data to defraud the government. State subsidies for green vehicles are high in China. The allegations are now under investigation.
The finance ministry is cutting back on NEV subsidies and plans to abolish them in 2020.