China’s new energy vehicle (NEV) sector reported significant growth in January, with production rising 29% year on year to reach 1.02 million units, according to the China Association of Automobile Manufacturers (CAAM).

Sales of NEVs increased 29.4% year-on-year to 944,000 units, representing 38.9% of total vehicle sales in January.

The overall auto industry in China experienced growth as well, with passenger car production reaching 2.15 million units, a 3.3% year-on-year increase.

Passenger car sales rose slightly by 0.8% to 2.13 million units.

Auto exports contributed to this positive trend, increasing by 6.1% from the previous year to total 470,000 units.