As new energy vehicles surpassed the 50-percent mark in monthly sales of all cars in China for the first time, experts said they expect the nation's auto market to continue acceleration, with solid consumer demand and proactive policy measures steering the industry toward high-quality growth.

Data released on Tuesday by the China Association of Automobile Manufacturers showed that NEV sales accounted for 51.6 percent of all new car sales nationwide in October, marking the first time the monthly penetration rate of such vehicles exceeded the 50-percent threshold.

"Continuous launches of new models, steady upgrades in product technology, and the rapid improvement in China's charging and battery-swapping infrastructure have jointly fueled robust growth in the country's NEV market," said Chen Shihua, deputy secretary-general of CAAM.

The sector's recent growth has exceeded forecasts, with this year's stimulus policies — such as trade-in programs and purchase tax exemption — giving a big boost to the auto market, he said.

"We expect both the total automobile output and total sales to reach around 34 million units this year, which will be an all-time high," Chen added.

From January to October, China's automobile production reached 27.69 million units and its automobile sales 27.68 million units, both up by more than 10 percent year-on-year, according to the released data.

Of these, the NEV output accounted for 13.02 million units, while NEV sales reached 12.94 million units, marking robust year-on-year growth of 33.1 percent and 32.7 percent, respectively.

Wang Du, vice-president of the China Automobile Dealers Association, said the nation's trade-in programs have delivered remarkable results in stimulating consumption and promoting both market upgrades and green transformation.

"Among consumers who applied for trade-in subsidies, as many as 60 percent opted for NEVs," Wang said.

"The policy is not only boosting consumption, but also accelerating the shift toward cleaner energy and injecting new momentum into the high-quality development of China's auto industry."

By the end of the trade-in programs on Dec 31, the total number of subsidy applications is expected to exceed 12 million, directly driving new car sales worth nearly 1.7 trillion yuan ($239 billion), according to estimates made by the dealers association.

China's NEV exports have also witnessed a surging trend. From January to October, 2.01 million NEVs were exported, representing a sharp 90.4 percent year-on-year increase, data from CAAM showed.

"The reputation of Chinese manufacturing has risen sharply since the COVID-19 pandemic. The country's massive industrial ecosystem, growing leadership in electric and smart vehicle technologies and cost advantages amid global inflation have all strengthened its global competitiveness," said Dong Yang, former executive vice-chairman of CAAM.

However, Dong warned that both domestic and international advantages could weaken in the coming years.

"As China approaches the end of the 14th Five-Year Plan (2021-25) period and prepares for the 15th Five-Year Plan (2026-30), it is essential to identify the conditions necessary to sustain healthy growth in the auto industry," he said.

As the production capacity can no longer expand at the same pace and innovation is already advancing rapidly, what is needed now is stronger fundamental research and stricter safety safeguards, Dong said.

"With price and cost competition intensifying, the focus should shift to institutional innovation on the market side, creating systematic policies to boost consumption and ensure long-term market vitality," he added.