(Yicai Global) Feb. 14 -- China’s production and installed capacity of power batteries fell on a monthly and yearly basis for the first time in January as new energy vehicle sales slow.

China produced 28.2 gigawatt-hours of power batteries last month, down 5 percent from a year earlier and 46 percent lower than in December, according to a recent report from the China Automotive Battery Innovative Alliance. Installed capacity slid 0.3 percent and 55 percent to 16.1 GWh from the same period last year and the previous month, respectively.

China’s NEV industry has been affected by the end of 13 years of government subsidies for clean energy vehicles at the close of last year. The country produced 425,000 units and sold 408,000 last month, down 6.9 percent and 6.3 percent, respectively, from a year ago, according to figures from the China Association of Automobile Manufacturers.

The power battery industry grew rapidly last year. Battery output surged 149 percent to 545.9 GWh in 2022 from the previous year, with the installed capacity jumping 91 percent to 294.6 GWh, according to CABIA numbers.

Battery giant Contemporary Amperex Technology continued to rank first by installed capacity with 7.2 GWh in January, with a market share of 44 percent, the data showed. But CATL’s lead over second-ranked BYD is narrowing, as the latter’s market share rose to 34 percent from 20.9 percent in the same month last year.

Some nine million NEVs are expected to be sold in China this year, a 30 percent increase from 2022, much lower than last year’s annual growth rate of 93 percent, according to the CAAM.

Editor: Futura Costaglione