By Kate Yuan

(JW Insights) Jul 11 -- China’s retail sales of new energy vehicles (NEVs) reached 665,000 units in June, up 25.2% year on year and 14.7% month on month, said the China Passenger Car Association (CPCA) on July 10.

Retail sales of passenger vehicles totaled 1.89 million units in June, up 8.7 percent from the month prior. In January-June, 9.524 million passenger cars were sold, increasing by 2.7% year on year.

In June, China exported 290,000 passenger cars, jumping 56% year on year. The export of NEVs was 70,000 units in June, climbing by 185.3% year on year, and decreasing by 27.8% month on month.

China's cumulative sales of NEVs surpassed 20 million units on July 3, marking a significant milestone, said CPCA. It only took 17 months for the second 10 million units starting from February 2022, when the first 10 million units were reached.

It is expected that the tax exemption NEVs in China will reach RMB113 billion ($15.67 billion) by 2023 and peak at RMB200 billion ($27.73 billion) by 2025. The CPCA also analyzed that the tax exemption amount for domestically produced NEVs is expected to exceed RMB520 billion ($72.1 billion) in 2024 - 2027.