New Energy Vehicle Market Analysis: Maintenance Demand Expected to Reach Significant Levels

New Energy Vehicle Market Review: Maintenance Demand Expected to Reach a Hundred Thousand Units

Date: May 6, 2025, 10:00 AM

Source: Daily News

The new energy vehicle (NEV) market is experiencing rapid growth. According to statistics from the China Automobile Manufacturers Association, this year, the production and sales of new energy vehicles have reached 3.182 million and 3.075 million units, respectively, marking increases of 50.4% and 47.1% year-on-year. NEVs now account for 41.2% of total vehicle sales.

With the rapid growth in demand, the NEV market is not showing signs of slowing down. According to the China Automobile Manufacturers Association, the production and sales figures for the first quarter of this year were 3.182 million and 3.075 million units, reflecting growth of 50.4% and 47.1% year-on-year. The new energy vehicle sales accounted for 41.2% of total vehicle sales.

Among these, pure electric vehicle sales increased by 47.7%, while plug-in hybrid vehicles saw a growth of 46.1%. Looking forward, forecasts from industry analysts suggest that between 2024 and 2029, the NEV market is expected to grow at an annual rate of about 20%, reaching approximately 2.9 million units by 2029. The primary drivers for this growth will be a shift towards electric vehicles, maintenance services, and battery replacement.

During this period, the market for pure electric vehicles is expected to significantly outpace other vehicle types. Data from the China Automobile Manufacturers Association indicates that from January 1 to April 13 this year, the sales of new energy vehicles reached 2.75 million units, an increase of 15% compared to the same period last year. The sales of new energy vehicles have shown a substantial growth rate of 53.3%.

According to a representative from a leading automobile manufacturer, “The intelligence of new energy vehicles is improving, and the pace of technology adoption is accelerating. As a result, customer demand for replacement vehicles is high, especially among young consumers.” This sentiment reflects the growing preference for electric vehicles among younger demographics.

By 2024, it is predicted that the sales of new energy vehicles could reach 1.1285 million units, a 47.9% increase from the previous year. Even though the sales volume of new energy vehicles is projected to grow, challenges remain for the market, particularly in the area of consumer acceptance of electric vehicles versus traditional internal combustion engine vehicles.

Recent data suggests that as of April 19, 2025, there were 52,371 new energy vehicles in operation in Beijing, with 12,420 of those being new energy vehicles, accounting for approximately 23.7% of the total. Notably, the new energy vehicle market is still facing challenges in terms of new car sales statistics.

As the market dynamics shift, new energy vehicles are increasingly recognized as a key trend. The market is projected to maintain a growth rate exceeding 30% in the coming years. By March 2025, the new energy vehicle market is expected to reach a cumulative sales volume of 285.25 million units, slightly below 1.3% compared to last year, reflecting a decline of 3.75 million units. However, among new energy vehicles, the demand for certain product categories is expected to remain robust.

In conclusion, as the new energy vehicle market continues to evolve, ongoing maintenance and service demands will play a critical role in sustaining growth. The overall market landscape suggests that the trend of new energy vehicles is likely to strengthen, indicating a promising future for the industry.