China Gets a Head Start on Electric Cars

China Gets a Head Start on Electric Cars

China isn’t an established leader in internal combustion engine cars, but it has a head start on electric vehicles.china electric cars Its companies are making more affordable models, attracting buyers in countries like Europe, where stiff Trump-era tariffs have fueled fears of an EV takeover.

But a deeper look at China’s EV strategy shows the nation’s determination to expand beyond its domestic market.china electric cars Its efforts have also sparked the attention of European regulators who are investigating whether to impose tariffs on Chinese imports to ensure that legacy automakers—like German giants Mercedes and VW Group—don’t get priced out of their own markets.

Back in 2009, China began putting money behind EV development, pouring 200 billion yuan into relevant subsidies that accounted for more than half of the global total.china electric cars That was just the start. China has since made EVs a top priority in its national economic planning, with some observers predicting that the nation will eventually become the world’s largest market for such vehicles.

The country’s commitment to EVs has been so significant that the government has begun subsidizing EV battery cells, lowering production costs and ultimately pushing the price of such vehicles down.china electric cars That’s a big reason why BYD is now the world’s top seller of EVs, with models that start at less than $11,000.

In China, charging access is plentiful and battery range doesn’t have the same limitations as it does in the US. That’s helped make EV adoption more widespread in China, where many residents live within easy reach of a power outlet. Additionally, EV owners in China tend to be more interested in technology than the driving experience, de Feijter says, which makes them a more attractive audience for such products.

To further encourage EV adoption, China has banned the purchase of gasoline-powered vehicles in several major cities. It has also backed or founded ride-hailing startups, which fill their fleets with EVs, often at lower cost than traditional cars. That’s a big part of why Geely, which owns Youxing, now controls a majority of the country’s car-sharing services.

All of these factors have pushed the United States to impose stiff tariffs on Chinese EVs, a move that has prompted lawmakers from both sides of the aisle to call for further action. “Companies from Detroit to Green Bay across the Midwest are feeling the effects of [Chinese Communist Party] economic coercion and market manipulation,” said a bipartisan group of members in a letter to President Trump last month. They’re urging the administration to consider new tariffs on Chinese goods, examine ways to prevent Chinese companies from using intellectual property laws to get an unfair competitive advantage in America and otherwise take steps to protect U.S. jobs and consumers.