Record-Breaking Sales of New Energy Buses and Trucks in China in 2024
A remarkable 90% increase from the previous year underscores China’s growing commitment to sustainable transportation and its robust policy incentives.
The market for new energy vehicles in China has reached unprecedented heights in 2024, with total sales of new energy hydrogen buses and trucks soaring to an all-time high of 238,000 units.
Explosive Growth in the New Energy Bus Market:
The surge in sales was driven by the new energy bus market, which accounted for 58% of the total hydrogen vehicle sales, totalling 138,000 units. Notably, small-sized buses experienced the most significant growth, with a staggering 180% year-on-year increase, reaching nearly 93,000 units in 2024.
The preference for smaller buses among Chinese consumers highlights a shift in market dynamics and indicates a growing demand for more versatile and efficient urban transport solutions.
In contrast, the growth rates for large- and medium-sized buses were modest, at 5% and 8% respectively.
This differential growth pattern suggests that while the market for smaller buses is expanding rapidly, the demand for larger buses remains stable but less dynamic.
Dominance of Hydrogen and Electric Powertrains:
The dominant powertrain choice for hydrogen buses and trucks remains overwhelmingly electric, accounting for 97% of total units. This preference for electric powertrains aligns with China’s broader strategy to reduce its carbon footprint and transition towards cleaner energy sources.
Substantial Government Support:
China’s National Development and Reform Commission has announced a substantial allocation of ¥300 bn ($41 bn) for subsidies to remove polluting vehicles and equipment with cleaner alternatives, including hydrogen-powered vehicles. This programme, funded via ultra-long-term special government bonds, offers varying scales of subsidies depending on the type of vehicle being replaced.
For instance, consumers scrapping old passenger cars and replacing them with vehicles listed on the “Directory of New Energy Vehicles Exempted from Vehicle Purchase Tax”—which includes fuel cell electric vehicles (FCEVs), battery-electric, and plug-in hybrid cars—can now access up to ¥20,000 ($2,750) per vehicle. This financial incentive is designed to accelerate the transition to greener transport options, supporting both environmental goals and the growth of the new energy vehicle market.
Future Outlook:
The record-breaking sales figures for 2024 highlight China’s rapid advancement in the hydrogen vehicle sector and its ongoing efforts to reduce carbon emissions. With continued government support and increasing consumer adoption, the future of hydrogen vehicles in China looks promising.
This growth not only signifies a positive step towards environmental sustainability but also positions China as a leader in the global shift towards greener transportation solutions.
