The Chinese Electric Car Market
The Chinese Electric Car Market
The Chinese electric car market is expected to grow at a rate of 20 percent each year through 2022. This is mainly because of the government's aggressive policy towards electric vehicles, as well as the rising demand for electric cars from the general population.
China's EV industry is currently dominated by foreign brands like Volkswagen and General Motors, but home-grown companies are starting to make inroads into the market. The Chinese government is pushing for a 40 percent share of electric cars by 2030, and the country's automakers are working to meet that goal.
Among the most important Chinese automakers are BAIC Motors, SAIC Motors and Honda Motor Company. These companies are mainly engaged in the production and sale of passenger cars, commercial trucks, buses, motorcycles, and other products.
There are a number of different EV models produced in China, with most of them available in a variety of price ranges. Despite the large scale of the country's EV market, there are still many obstacles that need to be overcome to increase its adoption rate.
One of the biggest obstacles facing the Chinese EV industry is infrastructure issues. While the country's charging infrastructure is expanding rapidly, some regions still have problems with power shortages that have a major impact on electric vehicle usage.
Another obstacle is the lack of private charging posts for EVs in most areas of the country, particularly urban areas. As a result, many Chinese EV owners are forced to rely on public charging posts, which are often located in places like shopping malls or parking lots.
Fortunately, the Chinese government has been making efforts to improve its charging infrastructure, which will help address this issue and ultimately increase the number of EVs on the road. In fact, the government is encouraging manufacturers to design a charging station in every new development project, as well as in public transportation systems.
Other initiatives are designed to make charging stations easier to find and cheaper to maintain. Besides, the Chinese government is also supporting the EV market by providing subsidies to EV manufacturers.
However, these incentives have been reduced in recent years and some have been eliminated altogether. The central government has also imposed a hefty requirement that automakers produce a certain percentage of their vehicles as battery-powered cars each year, to avoid financial penalties.
As a result, the price of EVs in China is expected to continue to fall significantly, although they remain more expensive than traditional gasoline-fueled vehicles. By 2030, the average price of a Chinese electric vehicle is expected to be US$11,000 (Rmb6,500) and will reach US$30,000 by 2040.
While the Chinese electric car industry is still in the early stages of its growth, it is likely to achieve significant success over the coming years, according to research by Goldman Sachs. The bank predicts that the Chinese electric car market will be worth US$5 billion by 2040, up from just US$4 billion in 2018.