(Yicai Global) Jan. 11 -- China’s passenger car sales climbed 4.4 percent last year from the year before to 20.1 million units, largely on the back of substantial growth in new energy vehicle sales, the China Passenger Car Association said today.

Nearly 17.2 million conventional fuel vehicles were shifted last year, a fall of 6 percent from 2020. Yet electric car sales soared more than two-and-a-half times to 3 million as the market gradually shifts away from fossil fuel-powered vehicles to zero emission ones.

Some 2.1 million passenger cars were sold last December, a year-on-year drop of 7.9 percent but a gain of 15.9 percent from the previous month. Sales of NEVs, though, more than doubled year-on-year to 475,000 units, and jumped 25.4 percent from the previous month.

The market penetration rate of electric cars reached 22.6 percent in December, much higher than the yearly average of 14.8 percent and 2020’s 5.8 percent. NEV exports maintained robust growth. SAIC Motor exported 5,716 NEVs, Geely Automobile 637, BYD 563, Tesla China 245 and Great Wall Motors 203.

BYD was the country’s most popular EV brand, shifting 93,338 units last year. Tesla followed with 70,847 vehicles and SAIC-GM-Wuling Automobile was third with 60,372. Fourteen automakers sold more than 10,000 NEVs a month in 2021.

January is off-peak season for the car market as the Chinese New Year Holiday falls at the end of the month. Government NEV subsidy cuts may also adversely affect demand, but sales will not drop sharply given that many orders have not yet been delivered, the CPCA said.

Editor: Kim Taylor