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China's EV market to sustain rapid growth in Q2: Fitch Ratings

Xinhua | Updated: 2019-04-09 16:14
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Electric vehicles being charged at an EV station in Hangzhou, East China's Zhejiang province. [Photo/IC]

BEIJING - China's electric vehicle (EV) market will continue to boom in the second quarter of 2019 despite subsidy cuts, according to the Fitch Ratings.

The rapid growth was supported by more attractive product offerings, wider commercial application of passenger EVs and "pull-forward" effect, said in a research note.

Last month, Chinese authorities announced to scale back subsidies in the new energy vehicle (NEV) industry to push for the sector's high-quality development with a three-month transition period.

The changeover period could stimulate EV manufacturers to encourage rush-buying through consumer subsidies and promotions.

With a large number of EV offerings to launch this year, Fitch Ratings believes that China's medium-term EV market will expand.

The intensifying competition would compel the EV automakers to improve the quality and performance of EVs, which will boost consumer demand, according to the research note.

China's support policies over the past few years have made it one of the fastest-growing NEV markets. Last year, the country's NEV sales soared 61.74 percent to 1.26 million units, according to the China Association of Automobile Manufacturers.

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