Connect with us

China

Is China winning the electric vehicle race?

The global market is growing exponentially, increasing six-fold since 2013 and doubling since 2015. Much of that growth is being driven by China.

Avatar

Published

on

China is winning the electric vehicle race

Demand for electric vehicles in China is soaring. Nearly 1.3 million new energy vehicles (plug-in electric vehicles and plug-in hybrids) were sold there last year – a 62% rise on 2017.

The global market is growing exponentially, increasing six-fold since 2013 and doubling since 2015. Much of that growth is being driven by China. As this chart shows, it’s been just four years since Chinese sales of electric vehicles overtook those in the US. Last year, they were more than three times higher, and the gap is predicted to get wider.


As this chart shows, it’s been just four years since Chinese sales of electric vehicles overtook those in the US
Image: Statista

To put that number into context, it’s estimated that as of September 2018, there were only around 4 million electric vehicles in use across the whole world.

New energy vehicles accounted for just over 4% of all 28.1 million automobiles sold in China last year. That’s a higher rate than the US (under 2%), and Europe (just over 3%).

But it’s not high enough to satisfy the Chinese government. Last April it announced ambitious targets of 10% for conventional passenger cars in 2019, rising to 12% in 2020.

Although those targets wouldn’t quite make China the world’s most enthusiastic consumers of electric cars per head of population – that title goes to Norway – the sheer scale of the Chinese market makes it far and away the most important in the world.

That is certainly what prompted Tesla’s decision to open a huge new manufacturing plant in Shanghai.

Construction of the Gigafactory 3 began earlier this month, with the stated aim of producing half a million vehicles a year. Production will focus on the Tesla Model 3 solely for the domestic Chinese market.

The push for electric vehicles now forms a major part of the environmental policies of many governments. At least 20 have set formal targets, with China one of several nations to announce a desire to phase out traditional internal combustion engines entirely.

It’s not just climate change that is prompting policymakers to act: a growing body of scientific evidence points to the damaging effects air pollution is having on people’s health, life expectancy, and even intelligence.

All this points to a bright future for electric vehicles. China’s Association of Automobile Manufacturers predicts a further 1.6 million sales in 2019. And that could be just the start, as the chart below shows.

Growth of this magnitude would be impressive under any circumstances, but particularly in contrast to the poor performance of the car market overall.

Six straight months of declining sales in China have rattled manufacturers already suffering from a collapse in diesel sales. British carmaker Jaguar Land Rover pointed to falling demand in China as one of the factors behind its decision to slash 10% of its workforce. The effects of a trade war between China and the US, and a slowing Chinese economy, are combining to make it a tough market.

Source link

Continue Reading
Advertisement Load WordPress Sites in as fast as 37ms!
Comments

China

Why Foreign Firms Struggle to Break Into China

In 2017, an analysis by Goldman Sachs found that while S&P 500 companies earned 30 percent of their revenues outside of the United States, China accounted for only 1 percent of their revenues.

Avatar

Published

on

For growth-starved Western entrepreneurs, the Chinese market is appealing. Think about it: Since 1995, China’s economy has grown by a factor of 18.5, from US$735 billion to US$13.6 trillion (excluding Hong Kong).

(more…)

Continue Reading

China

How China is using tourists to realise its geopolitical goals

Over the last two decades, the number of Chinese overseas travellers rose by over 25 times from 5.3 million in 1997 to 130 million in 2017, contributing an estimated US$250 billion to overseas economies

East Asia Forum

Published

on

Decades of astonishing economic growth have given China new tools for extending its influence abroad and achieving its political goals. Some of these tools are inducements, including Belt and Road Initiative projects and new development financial institutions.

(more…)

Continue Reading

Banking

How China’s role in global finance has changed radically

Within the space of just 15 years, China has gone from being the largest net lender to the world to now being a net borrower. The implications for the global economy, and China’s role within that economy, could be significant.

East Asia Forum

Published

on

‘If you owe the bank $1 million, you have a problem. But if you owe the bank $1 trillion, then the bank has a problem’. It’s an old gag, but it underscores an important point: the size of your borrowing or lending can have profound implications for your role in the world.

(more…)

Continue Reading

Most Read

Upcoming Events

Mon 21

34th International Conference on Dental and Oral Health

October 21 @ 9:00 am - October 22 @ 5:00 pm BMT
Nov 06

2nd World Congress on Pediatrics and Child care

November 6 @ 8:00 am - November 7 @ 7:00 pm BMT
Radisson Hotel Narita
Tomisato-shi
Nov 07

3rd World Congress On Gynecology, Obstetrics & Reproductive Health

November 7 @ 9:00 am - November 8 @ 4:00 pm BMT

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 11,595 other subscribers

Trending