<article><p class="lead">China's new energy vehicle (NEV) sales rose for the seventh consecutive month in January, hitting an all-time high in monthly sales. </p><p>The country sold 179,000 NEVs in January, up by 238.5pc from a year earlier when the auto industry was severely hit by the outbreak of Covid-19, but down by 27.8pc from December, according to China's automotive manufacturers association. </p><p>Production totalled 194,000 units in January, up by 285.8pc on the year, but down by 17.8pc on the month. </p><p>The Chinese NEV market has been recovering from the impact of the Covid-19 pandemic since the second half of 2020, with a higher pace of recovery expected this year after the Chinese government took various measures to accelerate long-term NEV adoption. </p><p>China's state council has announced a development plan for the NEV industry during 2021-35, targeting a 20pc share of NEVs in the country's total vehicles sales by 2035.</p><p>Keener competition among NEV manufacturers has also boosted production and sales. Major Chinese carmakers have <a target="_blank" href="https://metals.argusmedia.com/newsandanalysis/article/2184230">raised their sales guidances</a> for 2021-25 in view of higher buying interest after the Covid-19 pandemic eased and on rising demand for NEVs.</p><p>Major Chinese NEV producer BYD reported <a target="_blank" href="https://metals.argusmedia.com/newsandanalysis/article/2184225">higher</a> production and sales of NEVs in January.</p><p><table class='tbl-excel'><tr><td class='tbl-header'>China&#39;s NEV production and sales</td><td class='tbl-header'></td><td class='tbl-header'></td><td class='tbl-header tbl-right tbl-italic'></td></tr><tr><td class='tbl-columnheader tbl-bold tbl-left'>Vehicle type</td><td class='tbl-columnheader tbl-bold tbl-center'>Jan&#39;21</td><td class='tbl-columnheader tbl-bold tbl-center'>M-o-m &#177; %</td><td class='tbl-columnheader tbl-bold tbl-center'>Y-o-y &#177; %</td></tr><tr><td class='tbl-subheader'>Total production</td><td class='tbl-right'>194,000</td><td class='tbl-right'>-17.8</td><td class='tbl-right'>285.8</td></tr><tr><td class='tbl-left'>Pure-electric</td><td class='tbl-right'>166,000</td><td class='tbl-right'>-18.2</td><td class='tbl-right'>366.6</td></tr><tr><td class='tbl-left'>Plug-in hybrids</td><td class='tbl-right'>28,000</td><td class='tbl-right'>-13.6</td><td class='tbl-right'>92.4</td></tr><tr><td class='tbl-left'>Fuel-cell</td><td class='tbl-right'>29</td><td class='tbl-right'>-79.0</td><td class='tbl-right'>-80.0</td></tr><tr><td class='tbl-subheader'>Total sales</td><td class='tbl-right'>179,000.0</td><td class='tbl-right'>-27.8</td><td class='tbl-right'>238.5</td></tr><tr><td class='tbl-left'>Pure-electric</td><td class='tbl-right'>154,000</td><td class='tbl-right'>-27.0</td><td class='tbl-right'>287.8</td></tr><tr><td class='tbl-left'>Plug-in hybrids</td><td class='tbl-right'>29,000</td><td class='tbl-right'>-22.3</td><td class='tbl-right'>104.7</td></tr><tr><td class='tbl-left'>Fuel-cell</td><td class='tbl-right'>63</td><td class='tbl-right'>-38.2</td><td class='tbl-right'>-63.2</td></tr><tr><td class='tbl-footer tbl-right tbl-italic' colspan='4'>Source: CAAM</td></tr></table></article>