China's EV boom is moving so fast BYD says demand is now running at twice its supply

China's electric vehicle boom may be accelerating even faster than many analysts expected.

BYD said it is seeing far more interest from Chinese buyers than it can fulfill. Executive vice president Stella Li noted demand is about twice the company's present supply.

What happened?

Li told CNBC that "China's market very quickly will push to ... close to 80% in EV penetration," a much more bullish outlook than some rivals have offered about the market's growth.

According to China Passenger Car Association figures cited by CNBC, hybrids and battery-electric vehicles made up a record 62.9% of new passenger car sales in China last month.

Li attributed much of that momentum to advances in batteries and charging. BYD said its fast-charging system can bring a battery to 70% in just five minutes.

CNBC also cited association data showing that gas-car sales in China dropped 39% in May from a year earlier, as higher oil prices made fill-ups even more expensive for drivers.

Why does it matter?

Broader EV adoption can make cleaner vehicles more practical and more affordable.

EVs can help owners save money on fuel, and they generally require less routine maintenance than gas-powered cars because they have fewer moving parts and do not need oil changes. When oil prices rise, those savings can become even more noticeable.

A fast-growing EV market can also bring better charging access, stronger battery performance, and more competition among automakers.

What are people saying?

Not everyone shares Li's level of confidence about BYD. As Reuters reported, rival automaker Nio argued that the industry's "golden era" had ended.

Leon Cheng, head of mobility practice at consultancy YCP, said, "The question is not only whether BYD can maintain its leadership in China, but whether it can defend its position globally as more Chinese EV players compete aggressively in export markets."

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