EV Sales in China Almost Doubled This Year

EV Sales in China Almost Doubled This Year

EV sales in china have almost doubled this year and are now firmly established as a major new car segment in the country, accounting for over 30% of the total market.china ev sales The surge has been driven by a combination of factors, including government policies and incentives, rising consumer demand and advances in battery technology, and the fact that electric cars are generally cheaper than conventional vehicles.china ev sales

But it is not just national and subnational governments that are pushing EV adoption, with Chinese companies also taking a leading role in the sector thanks to their large scale, cheap labour and supply chain dominance.china ev sales Moreover, the cost competitiveness of EVs is getting even better, with improvements in product quality and greater model availability making it possible for manufacturers to cut prices further.

With abundant engineering talent, a flair for innovation, and the world's largest domestic market, it is little wonder that China has become a leader in the EV industry.china ev sales And its EVs can be even cheaper than those made by rival makers because of lower raw material costs and less complex production processes. This cost advantage is also due to the fact that most of the key raw materials needed for EV batteries are not scarce, unlike some other metals.

The country is also making it easier to purchase EVs by extending vehicle purchase tax exemptions, which are expected to help drive a further acceleration of EV sales in 2023 and bring forward the achievement of the 40% target for new energy-based transportation in the action plan for carbon peaking by 2030.china ev sales The extension is expected to boost EV sales by around 1.3-2.6 million units per year, according to ICCT research fellow Chu Yidan.

China's EV makers are also expanding their overseas presence as they take a longer-term view of the burgeoning demand for green transport.china ev sales For example, MG, the former British brand owned by China's SAIC, registered record sales in the United Kingdom in January, as it sought to tap the growing market for ride-hailing vehicles there. EVs powered by clean energy are able to run much longer than gasoline-powered cars, and can be charged up quickly at public charging stations.

A number of companies have already entered foreign markets, while others are focusing on increasing their capacity at home, as China has plenty of room for additional factories.china ev sales For instance, the Shanghai-based EV maker Lito has been building its capacity to produce 100,000 units annually, and plans to increase this to 300,000 units next year. Other firms, such as the premium brand IM Motors and Changan-backed Aion, are also looking for international markets, as they see a strong future for the global demand for EVs, especially in cities where pollution is a problem. This is a significant opportunity as city dwellers can benefit from the greater driving range of these vehicles, as well as their fuel efficiency. As a result, they can reduce their carbon footprints significantly by using them instead of traditional petrol and diesel cars.