What's going on?

Data out on Tuesday showed China sold almost three times more hybrid and fully electric vehicles (EVs) last year than in 2020. That�ll show the gas-guzzlers who�s boss.

What does this mean?

Chinese car sales had a remarkably strong year, with the country�s drivers buying 21 million vehicles in 2021� almost 5% more than the year before and only 5% less than a pandemic-free 2019. But it was hybrids and EVs that stole the show: customers bought almost three times as many of these �new energy vehicles� as they did in 2020.

And things might only be about to get greener: the Chinese government has said it�ll stop offering subsidies for EV purchases from 2023, meaning the country�s drivers are likely to take advantage while they still can. That could be why the China Passenger Car Association is expecting Chinese EV sales to hit 6 million this year � almost twice as many as 2021. And if it�s right, new energy vehicles will represent around 20% of the country�s total car sales.

Why should I care?

The bigger picture: A showcase in doing things right.
Volkswagen still somehow managed to fumble the ball: the carmaker said on Tuesday that it sold 14% fewer cars in China last year, mostly because the chip shortage caused all sorts of production issues. No such problems for Tesla: the EV maker � whose close relationships with suppliers helped it come through the chip shortage relatively unscathed � saw car sales in the country more than double in 2021.

Zooming out: Airbus is grounded.
EV companies might be thriving, but China isn�t fertile ground for everyone: Airbus warned on Tuesday that the country�s hardline anti-Omicron tactics could cause the planemaker a major headache. After all, the company could be forced to close one of its key factories in the country, while its Chinese customers might not want to add any planes to their runways until they know their customers are here to stay.