EVs and PHEVs Top Sales Of Gas Power Cars In China First Time Ever

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As a sign of the rise of alternative energy vehicles in China, EVs and PHEV sales will be top gas power car sales for July. This is the first time this has happened.

According to Reuters, “Sales of so-called new energy vehicles (NEVs) jumped 37% last month from the same period a year earlier, accounting for a record 50.7% of car sales, data from the China Passenger Car Association (CPCA) showed.” The surge was largely powered by the success of BYD, the world’s largest EV car company. China EV sales in China have damaged GM’s profits there.

China is the world’s largest car company by far.

The news shows the huge difference between the demand for EVs in the US—about one out of 8 cars sold in the US fall into the category. The demand for gas-powered cars remains robust. Another challenge to EVs is a rise in inexpensive gas-powered cars.

The US’s lack of demand for EVs has cost large car companies billions of dollars, and Ford has made a particularly huge investment, which it plans to total $30 billion. As that has not paid off, its quarterly losses from its EV division are in the billions of dollars.

Ford has also converted manufacturing capacity from EVs to its highly profitable heavy-duty pick-ups.

US EV sales have been hampered by worries about range and lack of charging stations. EVs are, on average, more expensive than gas-powered vehicles. Until these challenges change, US EV sales will look nothing like China’s.