China Electric Vehicle Market

China Electric Vehicle Market

When it comes to electric vehicles (EVs), China is a leader in sales and production.china electric vehicle market Its domestic automakers are poised to take advantage of an expanding market by taking a customer-centric approach that reflects local expectations and needs. In the process, Chinese OEMs can learn lessons that they can apply in other markets—including Western ones.

This spring, Shanghai hosted the world’s biggest auto show.china electric vehicle market While the international names like Toyota, Ford and BMW were on display, Chinese brands such as BYD and NIO drew attention with cutting-edge designs that are practical, affordable and attractive to consumers.

These successes are a result of the government’s role in driving demand for EVs and setting regulatory benchmarks that have spurred industry growth. Government-backed research has fueled innovation, while billions of dollars in subsidies, tax breaks and other incentives have lowered production costs.

At the same time, China has prioritized reducing its dependence on oil imports and easing environmental pollution. To reduce tailpipe emissions, it has restricted or banned the sale of combustion-engine vehicles in many key cities and provinces. It also requires automakers to offer a wider variety of battery-powered models.

As a result, electric cars now account for 26% of all passenger vehicle sales in China. Of those, fully electric vehicles (BEVs) account for the majority of the share. Plug-in hybrids, which use gas engines to power the transmission and other systems, make up another portion of the pie.

China’s EVs benefit from advanced electrical and electronic (E/E) technology that has reduced development cycles and enabled over-the-air (OTA) software upgrades, level-3 ADAS capabilities and more. In addition, the country’s massive battery ecosystem provides a competitive advantage for its manufacturers.

The country’s EV leaders are leveraging their experience in mobile phone batteries to create cost-effective vehicles that meet the needs of local consumers. They are also developing proprietary charging stations and partnering with local governments to customize policies that help them grow. In turn, these efforts have cultivated a large group of young car buyers who are excited about the future of EVs.

As China’s EV market grows, other countries—including the United States—are taking notice and reevaluating their own strategies. To succeed in the market, global automakers need to adapt their current design and engineering processes to accommodate new technologies and meet changing consumer demands. They need to focus on delivering innovative and robust HMI features, and they must also embrace vehicle-to-vehicle (V2V) connectivity that will provide valuable data to consumers, service providers and other partners. In doing so, they can deliver the value that EVs are expected to bring.

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