{"id":9876,"date":"2022-04-06T07:30:27","date_gmt":"2022-04-06T07:30:27","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=9876"},"modified":"2025-04-23T09:43:02","modified_gmt":"2025-04-23T09:43:02","slug":"how-big-is-chinas-electric-vehicle-market-really","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-big-is-chinas-electric-vehicle-market-really\/","title":{"rendered":"How big is China\u2019s electric vehicle market really?"},"content":{"rendered":"

Despite a dip in sales in 2019 and the impact of the pandemic in early 2020, China\u2019s electric vehicle (EV) market is recovering at full throttle, writes Juliette Pitt<\/strong>. But with previously generous subsidies on the decline, how big can China’s electric vehicle market really get?<\/h2>\n

Sales of China\u2019s so-called new energy vehicles (NEVs) more than doubled between November and December of 2021. According to the China Passenger Car Association (CPCA), full-year deliveries reached a record 2.99 million units, representing 14.8% of new car sales.\u00a0<\/span><\/p>\n

The Chinese government forecasts that by 2035, EVs are expected to account for 50% of all new car sales. Although China could face some hurdles in achieving this target, the country is already well ahead of its government\u2019s forecast to reach a 20% nationwide penetration rate by 2025. Further, it is hoped that by 2030, three in five new cars on China\u2019s roads will be powered by electricity instead of fossil fuels.<\/p>\n

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As a result, China\u2019s EV market is hyper-competitive. Tesla may still dominate at present, but there are an increasing number of popular home-grown brands. The combined sales of Chinese brands NIO, Xpeng and Li Auto are estimated to have reached around 280,075. Although this is still 13% less than Tesla, whose 2021 deliveries more than doubled to 321,000 units, these domestic brands are quickly developing aggressive new expansion models.\u00a0<\/span><\/p>\n

\u201cIn general, there is a notable preference for international brands of passenger vehicles in China, with 62% of consumers choosing an international option,\u201d David Gregory, China Business Advisor at CBBC, told FOCUS. \u201cHowever, there is a striking contrast within the EV market where nine of the top ten manufacturers are domestic companies, including SAIC, BYD and GAC Group.\u201d Gregory added that a number of Chinese companies that concentrate solely on producing EVs are emerging, suggesting that China will continue to lead the way not only in terms of market size but also in the development of the EV industry.<\/p>\n

\u201cEV brands that make it in China will be well prepared for sale in other parts of the world. The quality of Chinese cars including EVs is, compared to a few years ago, at an extremely high level,\u201d explains Thomas Engel, product launch manager at Volkswagen Anhui.<\/p>\n