New energy vehicles expected to make 35 percent of new car sales in 2025

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New energy vehicles expected to make 35 percent of new car sales in 2025

BEIJING Reuters - New energy vehicles NEV are expected to make up over 35% of new vehicle sales in China in 2025, He Xiaopeng, the chief executive of electric car maker Xpeng Inc said at the Reuters Events Automotive Summit.

China, the world's largest auto market is promoting NEVs that include battery-electronics, plug-in hybrid and hydrogen fuel cell batteries, to combat pollution and support the country's car technologies.

The China Association of Automobile Manufacturers CAAM stated earlier this month that NEV sales in China will increase to 3 million units this year, from 1.4 million last year.

He said this year's NEV sales slightly exceeded our expectations, adding he was surprised by the surge in recent sales of hybrid and micro electric vehicles.

Given the market growth, I'm actually more optimistic about the industry's NEV penetration rate in 2025, he said.

NEV sales made up 11.6% of China's overall market in the first nine months this year, CAAM told

Asked about the chip supply shortage that has affected the global auto industry, He said chip supply will remain a challenge in the next 12 months, but things will gradually get better.