Statistics demonstrate that this is the first time for China to rank the first in terms of the development index of electric vehicles. China is expected to dominate the world’s market of electric vehicles in the future. Despite stricter government policies concerning new energy and fewer financial subsidies, market shares of electric vehicles and battery manufacturing will continue to grow, further presenting extended competitive advantages.
In 2016, over 350 thousand plug-in hybrid electric vehicles and battery electric passenger vehicles were produced in China, accompanied by the sales growing at a double-digit rate. The market share also increased from 0.8% to 1.3%. In the same year, the number of registered electric vehicles in Germany, France and the U.S. exhibited a double-digit growth rate. However, in general, there were only two countries, France and China, whose market shares of battery electric vehicles and plug-in hybrid electric vehicles reached above 1%.
Generous government subsidies and restriction of licensing oil-fueled vehicles are major contributors to the rapid growth of electric vehicle sales in China. But the government is setting stricter policies and regulations on automobile enterprises. In the end of last year, the government reduced subsidies for electric vehicles by 20% and established stricter standards of putting new-energy vehicles in a recommended list.
It is estimated that the total sales of electric vehicles should approach approximately 1.6 million in 2020 in order to make the proportion of the type of new-energy vehicles reach 12%.
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Research Report on Electric Vehicle Industry in China, 2017-2021
It hopes that electric vehicles and plug-in hybrid electric vehicles will have occupied one fifth (approximately 7 million) of the automobile sales volume in China by 2025. The government also requires that 8% of vehicles sold in China should be electric vehicles in 2018.