BEIJING — Sales of passenger cars in China rose 4.4 percent year-on-year to 20.15 million units in 2021 as strong demand for new energy vehicles (NEVs) continued to underpin market growth, industry data showed on Jan 11.

In December alone, retail sales of passenger vehicles stood at 2.1 million, down 7.9 percent year-on-year, according to the China Passenger Car Association (CPCA).

A breakdown of the data showed an accelerating transition in the market as NEV sales continued to boom. Last year, a total of 2.99 million new energy passenger cars were sold in China, surging 169.1 percent year-on-year.

Although the decline of subsidies for NEV purchases may affect consumer sentiment, sales of the green cars will see limited impact as a pre-delivery order backlog remains, the CPCA predicted.