Leapmotor's Zhu Jiangming: China's EV Transition Accelerates; BEVs and PHEVs to Coexist Long-Term

During a media group interview following the launch of Leapmotor's new C-series models, Zhu Jiangming, founder of Leapmotor Technology, stated that China's electrification trend will accelerate further, and the market share of battery electric vehicles (BEVs) will continue to rise. He noted that the national retail penetration rate of new energy passenger vehicles has recently reached 66.7%. Nevertheless, he believes range-extended electric vehicles (REEVs) and plug-in hybrid electric vehicles (PHEVs) still have market demand—particularly among users who face charging difficulties and consumers in cold regions such as Northeast and Northwest China. Therefore, for the foreseeable future, BEVs, PHEVs, and REEVs will coexist and develop in parallel. According to data from the China Passenger Car Association (CPCA), national retail sales of passenger vehicles in May totaled 1.51 million units, down 22.1% year-over-year but up 9.2% month-over-month. Cumulative retail sales for the first five months of this year reached 7.099 million units, a 19.5% decline compared to the same period last year. The May auto market was characterized by a sharp drop in internal combustion engine (ICE) vehicle sales, dominance by new energy vehicles (NEVs), and resilient growth in exports. ICE vehicles’ market share fell to 37.1%, with their year-over-year sales decline accounting for 82% of the total passenger vehicle market contraction, making them the primary drag on overall market performance. From June 1 to June 7, the national retail penetration rate of NEVs reached 66.7%, while the wholesale penetration rate among manufacturers stood at 67.2%.