5 Reasons why China dominates the electric vehicle market
More than 25% of cars sold in China in 2022 were electric or plug-in hybrid vehicles, a 94% increase from 2021.
The Asian powerhouse is far from stopping as the tide of electric mobility grows despite several challenging circumstances that may have slowed industry growth.
China will have more than 155 electric vehicles available on the market in 2019, according to experts at the Shanghai Auto Show. See why China is the world leader in electric transportation and we will explain China dominates the electric vehicle market.
1. China’s head start
Because it chose electric vehicles in the 2000s after seeing how tough it would be to compete with European manufacturers of internal combustion engines, China is a standard in the electric car market.
As a result, the nation started to develop electrical technologies with the assistance of the government, which was involved in these plans and provided manufacturers with tax breaks and subsidies for the electric car sector.
2. Technological development
The Chinese government has aided in the advancement of technology for 20 years. The businesses that now own some of the most cutting-edge electric transportation technology serve as evidence for this.
For instance, the Chinese battery juggernaut CATL recently unveiled a new sodium-based battery that is less expensive than lithium-ion batteries.
The infotainment system in modern automobiles is crucial. The need for these amenities and for their travels to be as comfortable as possible is growing among consumers.
Because of this, Chinese automakers pay a lot of attention to connectivity, ADAS driver aid systems, and autonomous driving technology. To entice young consumers, who make up the large majority of electric vehicle purchases, businesses strive to offer the finest connection options.
4. More affordable prices
Compared to their European equivalents, Chinese electric vehicles market are roughly 25% less expensive. Chinese producers clearly benefit from this pricing point.
Additionally, such cheap prices are still far from being seen in Europe. Experts predict that by 2023, Chinese automakers will have sold one million electrified vehicles in Europe.
5. High manufacturing capacity
The electric car sector has experienced exponential expansion as a result of Chinese businesses’ vast manufacturing capacities and their competitive export rates. Additionally, a network of nations interested in Chinese goods has always existed because of the robust supply chain.
As a result, factories from a variety of manufacturers, including Tesla and Renault, have opened in China in order to export from there.