What Is a New-Energy Vehicle?

When it comes to electric vehicle adoption, China stands in a league of its own. According to MIT Technology Review, China has held the title of the world’s largest EV market for the past eight years, selling an astonishing 6.8 million electric vehicles in 2022 alone. By comparison, the United States sold just over 800,000 EVs in the same year.

To accelerate its ambitious shift away from traditional internal-combustion engines, China has heavily supported its EV industry. The government has provided substantial subsidies for both manufacturers and buyers while funding research into safer, more affordable lithium battery technologies. Although initial incentives included conventional hybrid vehicles, over the past decade, China has concentrated its resources entirely on what it classifies as “new-energy vehicles.”

What Are New-Energy Vehicles?

The Chinese government introduced the term new-energy vehicle (NEV) in 2009 to describe cars that run entirely or mostly on electricity. This category was created to raise awareness of vehicles powered primarily by electricity.

New-energy vehicles include plug-in hybrids (PHEVs), fully electric battery vehicles (BEVs), and hydrogen fuel-cell cars (FCEVs). For context, models like the Toyota Mirai and Hyundai Nexo are hydrogen fuel-cell vehicles available in the U.S., but only in California. While these vehicles fall under China’s NEV umbrella, they still represent only a small fraction of the domestic fleet.

Explosive Growth of China’s NEV Market

China’s aggressive push for automotive electrification officially began in 2012 with the release of its first new-energy vehicle development plan. Recognizing that domestic automakers could not compete globally in internal-combustion or conventional hybrid production, China poured massive resources into both the manufacturing and adoption of NEVs.

While global players like Tesla have contributed significantly to the rapid adoption of NEVs in China, domestic brands have flourished over the past decade. By 2021, the International Council on Clean Transportation reported that Chinese automakers such as BYD, Nio, Wuling, Xpeng, and Zeekr made up over 70% of all EV sales in the country. Notably, eight of the ten top-selling brands were Chinese.

A Wide Variety of Models

China’s NEV industry has matured to the point where manufacturers are now eyeing overseas markets, targeting sales in both Europe and the U.S.

Among the most popular non-Tesla Chinese EVs are:

BYD Han – The company’s flagship luxury electric sedan, designed to rival Tesla’s Model S.

Li Xiang One – A luxury midsize plug-in hybrid SUV with advanced features.

Nio ET5 – A fully electric sedan boasting an impressive range of over 600 miles.

Wuling Hong Guang Mini EV – A compact, city-friendly car available as both a hatchback and convertible, widely praised for its affordability and convenience.

These models showcase the diversity and innovation of China’s NEV market, demonstrating that the country is no longer just a manufacturer but also a trendsetter in global electric mobility.