Electric vehicle giant BYD predicts 80% of China car sales will soon be electric

At a time when electric vehicle sales growth in China has been slowing, BYD expects the country's EV market to expand — quite in contrast to smaller rival Nio that recently said the industry's " golden era " was over.

"With all the innovation technology introduced to the market, China's market very quickly will push to ... close to 80% in EV penetration," BYD's Executive Vice President Stella Li told CNBC's Arjun Kharpal on Monday.

Thanks to state support and a flood of car options, the penetration rate of hybrid and battery-only vehicles has grown rapidly in just a few years, exceeding half of new passenger cars sold in 2024 and a record 62.9% last month, according to the Chinese Passenger Car Association.

The U.S. electric car penetration rate remains at just around 10% , while that figure is roughly 25% globally, the International Energy Agency said last month.

U.S. tariffs of 100% on China-made electric cars have restricted local sales. BYD along with some other firms was put on the Pentagon's list of Chinese military-affiliated companies on Monday. The EV maker did not respond to a request for comment.

But BYD is optimistic about the domestic market, banking on improved battery technology.

Domestic demand for BYD's EVs now stands at around double what the company can currently deliver, Li said, thanks to its fast-charging technology that is reportedly capable of achieving a 70% charge in just five minutes.

Sales of gas-powered cars in China plunged by 39% in May from a year ago, the CPCA said Monday, citing the impact of higher oil prices amid ongoing hostilities in the Middle East.