BYD is China's largest NEV maker, capturing 35 percent of the country's NEV market in 2023.

BYD (OTCMKTS: BYDDF) chairman and president Wang Chuanfu expects China is on track to see half of its single-month vehicle sales contributed by new energy vehicles (NEVs) this year, after the share surpassed 40 percent for the first time late last year.

From 2020, China's NEV penetration continues to double, reaching 35 percent for the whole of last year, Wang said today at a conference held by the Guangdong provincial government, according to Shanghai Securities News.

Monthly NEV penetration surpassed 40 percent in 2023 and is expected to exceed 50 percent in a single month this year, Wang said.

China's retail sales of NEVs in 2023 are 7,736,000 units, contributing 35.7 percent of all passenger car retail sales, according to China Passenger Car Association (CPCA).

NEV penetration at retail reached 40.4 percent in November 2023 and 40.3 percent in December, according to CPCA.

In January of this year, NEVs slumped more as China's auto sales fell due to seasonal factors, resulting in a lower penetration rate of 32.8 percent.

Shenzhen, Guangdong-based BYD is China's largest NEV maker, with retail sales of 2,706,075 units in 2023, capturing 35 percent of China's NEV market, according to a CPCA ranking.

BYD ceased production and sales of vehicles powered entirely by internal combustion engines in March 2022, switching to a focus on producing plug-in hybrids (PHEVs) and battery electric vehicles (BEVs).

The company sold 201,493 NEVs in January, up 33.14 percent year-on-year but down 40.92 percent from December, according to a February 1 Hong Kong Stock Exchange announcement.

Currently, changes in the automotive industry have entered a deep-water zone, with electrification changes continuing to drive in the fast lane and intelligence changes beginning to pick up speed, Wang said today.

"The development of NEVs will only get faster and faster, and won't give us a chance to stop, slow down or catch our breath," he said.

Electrification and intelligence have reshaped the landscape of the luxury car market, creating new advantages and opportunities for local brands to enter the premium market, Wang said.

The share of Chinese brands in the domestic market has been increasing, having risen from 38 percent in 2020 to 56 percent last year, he noted.

Automakers' NEV market share in China in 2023: BYD 35%, Tesla 7.8%, Nio 2.1%