China's EV Charging Network

China's EV Charging Network

China aims to lead the world in transforming its transport sector into an environmentally friendly system.china ev charging network The country has been laying the groundwork for this transformation for over a decade. Its efforts have included the construction of a comprehensive charging network.

At the same time, it is boosting production and sales of electric vehicles.china ev charging network In the first quarter of 2023, EVs registered in China grew 29% year-on-year to over 8 million units. China’s EV market is booming, but the country needs to keep building its ev charging network in order to meet demand.

In the past, Chinese EV makers often relied on third-party operators to build their charging networks.china ev charging network That changed after a number of leading players, including Tesla, became profitable enough to invest in their own infrastructure. Some premium overseas OEMs, such as Audi and BMW, also launched their own charging networks in China. These partnerships have provided Chinese drivers with a branded charging experience and increased their confidence in the suitability of EVs as daily transportation.

But the market is highly fragmented.china ev charging network The top five charging service providers account for about a third of the country’s charge points. Many of these facilities have low utilisation rates, with the exception of peak-demand times during holidays. The lack of standardisation, low profit margins, and high infrastructure investment have made it difficult for new players to enter the industry.

Nevertheless, the country’s leading operators are expanding their charging networks rapidly. Last year, the Shenzhen-listed TELD () added 111,000 charging points, and its network now covers more than half of the country’s population. The country’s second-largest operator, StarCharge, is also accelerating its expansion. It has more than 419,000 chargers, with utilisation rates of around 8%.

The utilisation rates are likely to improve as EV penetration rises. In China, plug-in models currently account for 26% of all vehicle sales. This is set to grow to a third this year, according to research firm BNEF. A future in which EVs are dominant, however, may not require the same scale of public charging infrastructure as is needed to refuel petrol cars. This is because drivers can choose to use private charging stations. This option will allow them to get their car charged at home, or at work. In addition, EV batteries can give power back to the grid, helping to alleviate energy storage issues and enhance grid stability.