China’s passenger electric vehicle retail sales increased 38% year-on-year in March to 991,000 units, Kallanish learns from the China Passenger Car Association (CPCA).

The data shows 2.42m EVs have been sold in China so far this year, which is 36.4% higher than the same period in 2024. In March, domestic demand translated into a penetration rate of 51.1%, supported by scrapping and fleet renewal schemes, as well as the exemption of purchase tax.

Battery electric car (BEV) sales surged 50.6% to 646,000 units, while plug-in hybrid (PHEV) sales increased 24.6% to 268,000 units. Extended-range electric vehicles (EREVs), which were previously reported as PHEVs, saw a retail sale growth of 4.1% to 77,000 units.

According to Cui Dongshu, secretary general of the association, EVs became “the main driving force for the recovery of the passenger car market in spring.” The overall car market, which includes internal combustion vehicles, only grew by 14.4% in March.

Manufacturers also recorded a record-high EV production volume for the month, with 1.16m units rolling off production lines – up 43% compared to March 2024. Year-to-date, passenger EV manufacturing rose 46% to 2.92m cars.

As production expands and new models are launched, carmakers continue their international expansion quest, though volumes have been hit by protectionism in certain markets. Last month’s EV exports recorded a modest growth of 6.4% y-o-y to 143,000 units, with BEVs only accounting for 62% of the shipments, instead of 83% last March. (See related story)

CPCA says that the domestic price war is easing, with 23 models promoted at a reduced price, compared to 51 in March last year.