© . FILE PHOTO: Cars drive on the road during morning rush hour in Beijing, China, July 2, 2019. REUTERS/Jason Lee BEIJING () -Sales of new energy vehicles (NEVs) in China fell 18.6% month-on-month in January after the country cut subsidies for NEVs by 30%, industry data showed on Friday. Sales of NEVs, including battery-powered electric vehicles, plug-in gasoline-electric hybrids and hydrogen fuel cell vehicles, reached 431,000 in January, representing an annual increase of 135.8%, according to data from the China Association of Automobile Manufacturers (CAAM). ). December sales surged as buyers rushed ahead of a subsidy cut that happened in January, Cui Dongshu, secretary general of another trade association China Passenger Car Association (CPCA) said Monday. In December, 518,000 NEVs were sold in China, an increase of 159.5% year-on-year. China has ambitious goals in promoting NEVs as part of its efforts to contain air pollution and believes the industry has matured enough to be driven by demand rather than subsidies. Total auto sales in the world’s largest auto market rose 0.9% in January from a year earlier to 2.53 million vehicles, their first increase after eight consecutive months of declines, CAAM said. In January, demand continued to increase for the Lunar New Year and chip supply continued to improve, CAAM said in a statement. But revenue growth slowed due to the impact of the COVID epidemic in some areas, it added. A global shortage of chips, used in everything from brake sensors to power steering and entertainment systems, has led automakers around the world to cut or suspend production, driving prices up and negatively impacting sales. On Monday, data from CPCA showed that US electric vehicle maker Tesla (NASDAQ:) Inc sold 59,845 vehicles made in China in January. Tesla is the only foreign automaker in the top ten best-selling NEV brands in China thanks to fierce competition as local manufacturers such as Nio (NYSE:), Xpeng (NYSE:) Inc and Li Auto Inc serve Chinese consumers with products that are more are custom made. made to local taste. Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.