Sales of electric and hybrid vehicles jumped more than 40 percent in China last year, as demand for new energy models continues to surge and the sector remains entrenched in a gruelling price war.

The Chinese Passenger Car Association (CPCA) reported on Thursday that the sales of electric and hybrid vehicles (NEVs) in China increased by 40.7% year over year in 2024, reaching a record level of nearly 11 million units.

China has renewed a trade-in subsidy of up to 20,000 yuan ($2,730) to help underpin sales of fuel-efficient vehicles, including electric cars and hybrids.

But today, China is also the biggest global exporter of electric vehicles (EVs). Following an astonishing 13,300 per cent increase in production between 2017 and 2023, the country has skyrocketed to dominance in the sector.

China's car sales maintained their growth pace in 2024 as sales of electric vehicles and plug-in hybrids in the world's largest auto market hit a record high amid a brutal price war and with subsidised trade-ins for greener vehicles driving purchases.

Sales of EVs and plug-in hybrids, known collectively as new energy vehicles (NEVs), rose 40.7% to make up 47.2% of total car sales last year, closing in on a 50% milestone, buoyed by a programme likened to the 2009 US "cash-for-clunkers" stimulus.