The shift in China to more electric vehicles (EVs) is a historic turning point in the evolution of the global automotive industry. The development of electric mobility in China has its roots in efforts to address severe air pollution and insecurity of energy supply. The government has spoken of the potential of EVs to decrease the level of greenhouse gas emissions in the country and the dependence on imported oil. This resulted in the formulation of policies and incentives advocating the adoption of EVs, such as subsidies, tax exemptions, and charging point investments.
In the past, before the highly-rated electric cars, China depended heavily on internal combustion engine (ICE) vehicles. Vehicles that operated on gasoline or diesel were prominently used as a means of transport for many years. However, the rising incidence of environmental issues and the high incidence of imported oil forced the government to look for other options, hence the hybrid system, and finally, the all-electric vehicles.
Early Development
The history of Chinese EV technology can be dated back to China in the early 2000s, when the government started to focus on research and development in EVs. When the problems of ICE vehicles started occurring, driven by changing technology, China turned its attention towards pure electric vehicles. These include new technological breakthroughs and improvements in batteries, as well as efforts by governments in several economies during the mid-2010s to provide policies and incentives for EVs. Some of the well-known players, including BYD, NIO, and Geely, became prominent EV brands in the market.
Current and Future EV Development in China
Today, using an EV is popular in China and the country is a leader in the development of this industry. There is a solid base for electric vehicle production in the country, and many companies like Tesla and BYD are creating various automobiles, including mini and full-size electric cars and even electric SUVs. To sustain and increase the proportion of charging infrastructure and battery technology, the government has consistently provided support and investment that has established China as a reliable player in the EV market.
In September 2024, the United States proposed to ban Chinese software and hardware from vehicles on American roads due to national security concerns. The 2024 ban would target vehicle connectivity systems and automated driving systems, citing potential risks of surveillance and manipulation by foreign adversaries. The Biden administration has also announced significant tariff hikes on a range of Chinese imports. The proposal follows similar actions taken against Chinese technology in other sectors and has prompted pushback from Beijing officials.
Despite that, the leading country in global EV manufacturing is China, contributing to more than 60 percent of global sales in the year 2023. Therefore, there is a huge market for EVs in China and virtually all EV models are within reach, from small urban runabouts to high-performance luxury cars. The current uses of EVs in China include passenger cars, public transport, and commercial vehicles.
As indicated by the China global trade data of 2023, the country exported 1. 2 million new electric vehicles, which take up over half of the global sales. The Chinese government has set its goal to achieve 25% of new car sales to be electric ones by the year 2025, or selling approximately 7 million EVs a year.
According to the Chinese Ministry of Public Security, 13.1 million new EVs were sold in China in 2022. This represents a 67.13% increase over the 7.84 million EVs sold in 2021. These numbers are expected to rise in the coming years; the projected average annual growth rate from 2023 to 2028 is 17.15%. China’s EV market size, which is currently at $260.84 billion, is predicted to reach $575.56bn by 2028.
Popular models of EVs in China are the BYD Qin, NIO ES6, and the Tesla Model. They exhibit the latest technology, longer distance coverage, and are relatively cheaper in the market. These qualities explain why consumers find these vehicles attractive. Some of the key electric car and battery manufacturers in China include BYD, SAIC, Geely, NIO, XPeng, and Li Auto. Most of these Chinese companies have established research departments that focus on developing better EV batteries and systems. The Chinese manufacturers are also focused on enhancing the capability and performance of their EV models.
Benefits of Electric Vehicles
Perhaps the biggest pro in the usage of EVs would be the improvement of our environment. Unlike ICE (internal combustion engine) vehicles that emit harmful gases into the atmosphere, EVs have no direct tailpipe emissions, hence helping to decrease pollution and airborne diseases in the environment, especially in urban settings.
A key goal of Chinese officials is to promote the utilization of Chinese electric automobiles to cut oil importation. Since this transition promotes electric vehicles, this implies a boost in energy security and contributes to sustainable development plans.
The operating cost of electric cars is relatively less than that of ICE vehicles. Electricity is cheaper than gasoline; electrical cars have fewer components that are prone to wear and tear and thus have low maintenance costs. Moreover, government incentives and subsidies also allow for a further decrease in the total cost of ownership incurred by the consumers.
Compared to traditional cars, EVs are well accepted since they are environmentally friendly and cheaper to maintain, especially as air pollution continues to rise in urban areas. The reduced operating costs of EVs and the attempts to increase subsidies for them have allowed wider segments of society, including low-income earners, to jump into owning EVs.
Indeed, the expansion of the EV industry has put people into new business opportunities in manufacturing, research and development, installation of charging point stations, etc. This has led to economic development and increased employment within the People’s Republic of China.
Consumers in the Chinese market have been mostly receptive to the technology of electric vehicles. The policies that have been put in place by the government, the low cost of production and maintenance, and the benefits that come with using green technology have made most users of EVs happy. However, there may be some disadvantages, such as a lack of enough charging points and correct battery handling.
Leading EV Manufacturers in China
BYD
BYD (Build Your Dreams) is undoubtedly one of the largest and most famous electric vehicle manufacturers in China. Some of its products from electric vehicles include buses, trucks, and passenger cars for commercial use. Due to this innovation and adherence to environmental sustainability, BYD has become a preferred brand in the global electric vehicle market.
NIO
NIO is an upscale Chinese automobile manufacturer that specializes in the production of electric cars with sport utility vehicle features. That is the case with the company’s brand models like the ES6 and ES8, which have attracted attention for their technology, range, and comfort, amongst other factors. Their strength lies in the aspect of a customer-friendly approach and an innovative battery-swapping system that has been developed by NIO amid so much competition in the electric car industry.
Tesla
A well-known American electric car company that has benefited from China’s market is Tesla. The Model 3 and Model Y, two of its most requested models, are manufactured in the Gigafactory located in Shanghai. Tesla’s operation in China impacts the native car makers by bringing competition and likely new technology.
Conclusion
China’s becoming the biggest market for electric vehicles is the future change towards environmentally friendly cars. The support of the government, integrated with the efforts of the leading manufacturers, has led China to lead the shift to electric mobility. Yes, issues like the lack of charging stations or the problem of batteries’ recycling still exist, but the advantages that electric cars are free from ecological pollution—as they do not require oil purchase and have competitive prices for consumers—make the cars attractive for people.
So, as global giants like China pour their money and efforts into the advancement of electric vehicle technology, we can envisage that the future of transportation is going to be highly electric. Consequently, such goals, as well as the country’s commitment to achieving sustainable results, will most certainly define the automotive market in the years to come.
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Tayyaba Rehan is a student at the National Defence University. She is currently pursuing her degree in defense and strategic studies. She has worked with multiple governmental and non-governmental organizations. Her articles have been published in national as well as international publications.