Summary
- China holds 76% of the global market share for fully electric and plug-in hybrid vehicles
- Chinese automakers BYD, Geely, SAIC, and newcomers like Xiaomi are driving growth in the EV market
- China accounted for 69% of global EV and PHEV sales between January and October
- China’s EV market accounts for 76% of global EV sales, outpacing the U.S. and Europe
- Concerns about EV overcapacity in China and potential protectionist measures in the U.S. and Europe to counter China’s growing market dominance.
Article
China Dominates Global Electric Vehicle Market
China’s global share of the fully electric and plug-in hybrid vehicle market reached 76% in October. The Chinese market accounted for 69% of global EV and PHEV sales between January and October, with automakers like BYD, Geely, SAIC, and newcomers like Xiaomi driving this growth.
Chinese Automakers Lead in Electric Vehicle Industry
Over the past decade, Chinese automakers have risen in the auto industry, surpassing the U.S. and Europe in democratizing electric vehicles. The latest sales data shows that China is far ahead in electrification, with the country holding a significant lead that would be challenging for others to catch up with.
China’s EV Market Dominance
China’s EV market represented 76% of global EV sales in October and accounted for 69% of global NEV sales between January and October. In comparison, the U.S. and Europe lag behind in EV and PHEV sales, with China holding a substantial share of the global market.
Growth of Fully Electric and Plug-in Hybrid Vehicles
China’s share of fully electric global sales reached 63.2% from January to October, while the share of PHEVs stood at 78%. The growth of EVs and PHEVs is mainly driven by China and Norway, with China having a more significant statistical impact on the global market.
Challenges in the Chinese EV Market
There are concerns about EV production overcapacity in China affecting the global market, particularly in the Global South where Chinese EVs are gaining popularity. The EU has imposed tariffs on Chinese cars, while the U.S. and Canada have tariffs and proposed bans on Chinese-origin software in future EVs, impacting international competition.
Future Outlook for the Chinese EV Market
China has doubled its EV subsidy, offering buyers who replace gas cars a subsidy of 20,000 yuan. Despite competition among Chinese automakers to gain market share, many analysts believe only a small number of brands will be profitable by the end of the decade. With potential changes in U.S. EV incentives, China may further expand its lead in the global EV market.
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