Market Trends of china electric car Industry
Government initiatives and strong OEM investments drive rapid drowth in electric vehicle sales in China
- The programs launched by the government to reduce gas emissions caused by vehicle fuels are encouraging consumers to shift to green vehicles. In November 2020, the government of China announced a ban on fossil fuel vehicles by 2035, clearly stating the selling of 100% new energy vehicles under the new energy program. As a result, the demand for electric cars increased. Adopting such regulations enhanced the sales of electric cars and various types of battery packs used in them in China in recent years.
- The government is introducing various schemes and incentives for customers and manufacturers to promote and enhance the demand for electric vehicles in the country. In May 2022, the government announced the reintroduction of the subsidy program to increase the sales of electric vehicles. Moreover, the government will allocate a subsidy of USD 1500 to customers opting for an electric car. Such factors have encouraged customers to invest in electric mobility, which further has increased the sales of electric cars by 2.90% in 2022 over 2021 in China.
- The growing demand for electric vehicles has forced OEMs to plan to increase development and production in the electric vehicle category. In 2021, General Motors announced its plans to raise its spending on electric and autonomous vehicles to USD 20 billion by 2025. The company is expected to launch 20 new electric models by 2023 and aims to sell more than 1 million electric cars a year in China. As a result, these factors are expected to drive the electric vehicle market in China during the 2024-2030 period.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- China's population, influenced by factors like aging demographics and reduced birth rates, is anticipated to decline further, reaching 1,395.21 million by 2030
- A stable and optimistic growth trend is anticipated for 2024-2030, supported by technological innovations and a growing consumer base
- China's MaaS revolution is a journey of growth and projections in shared mobility
- The declining cost of lithium-ion batteries drives electric vehicle demand in China
- Driving forces behind China's thriving used car sales market
- The Asia-Pacific automotive industry, led by China, is undergoing a significant shift toward electrification
- China's GDP per capita expected to continue rising driven by long-term economic strategies, innovation, and global positioning
- Achieving steady inflation is a strategic imperative for China's sustained economic dominance
- China's electric vehicle charging station market soared to 1,000,000 slow charging and 760,000 fast charging stations in 2022, with future projections on the rise
- New Chinese electric vehicle debuts are driving the demand for battery packs
- The demand for crude oil in China is expected to decline slightly owing to strong demand for EVs
