Sales of electric vehicles and plug-in hybrids in China surged 240 percent year on year to 21,055 vehicles in June as government subsidies spurred demand.
EV deliveries last month totaled 14,699 vehicles, nearly triple the number a year ago, according to the China Association of Automobile Manufacturers. Plug-in hybrid sales jumped 180 percent to 6,356.
In the first half of the year, China's EV sales jumped 290 percent to 46,219 vehicles while plug-in hybrid deliveries rose 190 percent to 26,492.
Only EVs, plug-in hybrids and fuel cell vehicles qualify for government subsidies in China. The association did not disclose sales of fuel-cell powered vehicles.
China encourages sales of EVs through subsidies to consumers and incentives to manufacturers. Central and local governments have offered incentives that reduce prices by as much as 60 percent, according to data compiled by Bloomberg.
With sales rising, several Chinese automakers have hatched ambitious plans to develop EVs and plug-in hybrids. Last week, Jianghuai Automobile Co. said it plans to spend 4.7 billion yuan ($758 million) to develop EVs, plug-in hybrids and related components.
The automaker said it aims to produce 100,000 vehicles a year.