BEIJING - The market penetration rate of new energy vehicles (NEVs) in China was 5.4 percent in 2020, indicating strong growth momentum in the sector, according to an annual report released by the Ministry of Industry and Information Technology on Thursday.

NEV sales in China increased 10.9 percent year-on-year to 1.37 million units in 2020, amid government efforts to encourage their use and ease pressure on the environment.

China's NEV sales have exceeded 1 million units for three consecutive years, ranking first globally for six consecutive years, the report said.

There were 4.92 million NEVs in China at the end of 2020, accounting for 1.75 percent of the country's automobiles, it said.

The report also pointed to weaknesses in the sector, as pure electric vehicles continue to have problems such as reduced driving ranges in low-temperature environments.

Earlier data shows China's NEV sales hit a historic high of nearly 1.48 million units in the first seven months of this year, surpassing total NEV sales in 2020.

The data accounted for 10 percent of new car sales during the period, up 6.1 percentage points from the share in the same period last year.

China aims to raise the proportion of new NEVs in its sales of new vehicles to 20 percent by 2025, according to a development plan for China's NEV industry released last year.