China continues to be the largest electric vehicles market in terms of fleet size and annual sales as of 2020. The country is expected to maintain its dominant position during the 2021-2030 period as well, deploying more than 50 million electric vehicles in the next 10 years, says GlobalData, a data and analytics company.
Growth in the Chinese electric vehicles market is attributed to strong policy support from the government and the presence of various local and international electric vehicle players in the country. Major electric vehicle players in the country include Tesla, BYD, and SAIC. Moreover, China also has a robust electric vehicle ecosystem with battery manufacturers having their factories in the country. With more start-ups such as NIO, XPeng, and Li Auto entering the electric vehicles space and well-established companies experiencing strong demand locally, the electric vehicles market in China is poised for growth in the coming years.
The annual sale of battery electric cars is expected to increase from one million in 2020 to reach eight million in 2030. Also, the annual sale of battery electric commercial vehicles is expected to grow from 0.12 million units in 2020 to 1.61 million in 2030.
Rohit Ravetkar, Power Analyst at GlobalData, comments, “China has been one of the largest automobile markets for the last 15 years and several international electric vehicle manufacturers such as Tesla, Volkswagen, and Hyundai have set up manufacturing sites in the country to tap into this market. Domestic companies such as SAIC Motor are introducing low-cost electric cars in the Chinese market. This, coupled with the falling prices of batteries, is expected to bring down the cost of electric vehicles, thereby propelling sales in the country.”
The country has set an ambitious target of reaching 20% fleet size of new energy vehicles (including battery electric vehicles) by 2025, which is expected to aid the growth of the electric vehicles market. The electric vehicle subsidy program in the country has been extended up to the end of 2022 from the original deadline of December 2020 to mitigate the impact of the COVID-19 pandemic and the resulting slowdown in the auto industry.
Ravetkar adds, “With strong policy support from the government and increasing investments from electric vehicle OEMs, the electric vehicles market in the country is expected to grow at a rapid pace during the 2021–2030 period.”