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2024
Electric cars overtook ordinary cars in China for the first time in history
In August 2024, electric cars (including hybrid models) overtook cars with traditional internal combustion engines in terms of sales in China for the first time in history. This is stated in the report of the Chinese Passenger Car Association (CPCA), published in early September 2024.
Demand for electrified vehicles in the PRC is growing rapidly. Sales of such vehicles are estimated to have jumped 43.2% year-on-year in August 2024, reaching 1.03 million units. Their share was 53.9% of nationwide supplies. Thus, cars with ICE accounted for 46.1%: their sales volume decreased by 28% year-on-year, reaching 870 thousand units.
Sales of hybrid electric vehicles in China in August 2024 increased by 96.9% on an annualized basis - to 444 thousand units, which amounted to 43.2% of the total sales of electrified cars. At the same time, in general, sales of cars of all types in the PRC in August 2024 decreased by 1% compared to the same month of 2023 - to 1.91 million units.
China uses various tools to stimulate the production and sales of electric vehicles. These are nationally approved discounts for buyers, a 10% sales tax exemption, government funding for infrastructure (primarily charging stations), R&D programs and government purchases of electric vehicles. At the same time, dozens of Chinese automakers are striving to offer electric vehicles with increased range, fast charging, intelligent applications and other advanced solutions.
China is also the world's largest market for electric vehicles: in the first half of 2024, sales of fully electric and hybrid models in China accounted for 65% of the global volume.[1]
BYD dominates Chinese market, Tesla sales fall
Car buyers in China are shunning Tesla as rival manufacturers flood the world's largest car market with more advanced electric vehicle models.
Over 15 years, $230.9 billion has been spent on the development of the electric vehicle industry
From 2009 to 2023, the Chinese authorities spent $230.9 billion on the formation and development of the national industry of electric vehicles. Such data are contained in the report of the American Center for Strategic and International Studies (CSIS), which TAdviser got acquainted with in mid-August 2024.
It says it China uses various tools to stimulate the production and sales of electrified vehicles. These are nationally approved discounts for buyers, a 10% sales tax exemption, government funding for infrastructure (primarily charging stations), programs R&D and government purchases of electric vehicles. In 2023, as part of state support, 87.4% of expenses fell on exemption from sales tax, and another 9.4% were R&D projects.
In general, during 2009-2023, the PRC authorities spent about $25 billion on R&D related to electric vehicles. $117.7 billion was spent on tax exemption during this period. $18 billion was allocated for state purchases of electric cars. Discounts for buyers cost the government $65.7 billion. State infrastructure financing is estimated at $4.5 billion.
Over the years, Chinese car companies have lagged far behind global leaders in Europe, East Asia and North America, the CSIS filing said. However, China then sharply closed the gap in the production of machines in general and made a leap forward in the segment of electric vehicles. Significant progress was demonstrated by such companies from the PRC as BYD, Geely, Great Wall, Nio, Li Auto and XPeng. At the same time, the transition from internal combustion engines to electric motors radically reduced the technological threshold, which allowed companies from the IT sphere to enter the electric vehicle market.[2]
2023
The total number of sales of electric vehicles in China reached 18 million units
According to BloombergNEF, more than 18 million electric vehicles were sold in China from the beginning of 2017 to the end of 2023, which is almost half of the total sales in the world and four times more than in the United States.
By 2026, the research group predicts that more than 50% of all new passenger cars in China will be electric, while in the United States this figure will be just over a quarter.
The EZS network in China is larger than in the rest of the world
China produces more than 50% of the world's electric vehicles
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BYD, Tesla lead Q1 sales
2022
The share of electric vehicles and hybrids in new car sales in China doubled over the year and reached 30%
In early September 2023, Sinopec, China's largest oil company, said that the peak of domestic gasoline consumption had passed, and in the future the demand for this type of fuel would decline.
Chinese buyers of new cars are increasingly choosing so-called "new energy vehicles" (NEVs), that is, electric cars and hybrids. Such models in 2023 account for 37.8% of the total sales of passenger cars in the PRC. For comparison: in 2022, the indicator was 30%, in 2021 - 15.5%, and in 2020 - only 5.4%.
In 2022, Scandinavian countries such as Norway (87.8%), Iceland (56.1%) and Sweden (56.1%) were leading in terms of electric vehicle adoption. At the same time, China sells about 10 times more electric vehicles than all these three states combined. Moreover, the PRC remains a huge potential for the growth of the NEV segment: as of 2022, less than 5% of cars on Chinese roads were equipped with electric or hybrid power plants.
Sinopec is seeing a drop in demand for gasoline, and no growth in sales of this fuel is expected. It was predicted that the peak of oil consumption would come in 2025. But at a conference in Zhengzhou in August 2023, it was announced that new-energy cars would provoke a reduction in sales of petroleum products in China by 15 million tons in 2023. Sinopec expects fuel shipments to continue to decline in 2024 and beyond.
China provided more than 70% of global oil market growth in 2023, according to the International Energy Agency. Global sales of petroleum products reached a record high of about 102.2 million barrels per day. But gasoline for passenger cars is only a small fraction of the specified volume. Thus, it is not clear how the electric vehicle boom in China will affect gasoline consumption on a global scale.[3]
125 public ESVs per 1,000 electric vehicles
Sales of electric vehicles and hybrids doubled
In 2022, sales of electric vehicles and rechargeable hybrids in China doubled, despite the fact that the entire car market was rather sluggish due to restrictions imposed amid new outbreaks of the COVID-19 coronavirus.
In 2022, 5.67 million electric vehicles and plug-in hybrids were sold in China, the Chinese Passenger Car Association (CPCA) said. The rise in demand for such models is due to the fact that government subsidies and high oil prices forced buyers to switch from models with internal combustion engines. More than 4 million all-electric cars were sold, five times more than sold in the United States in 2021. Thus, China has become the largest market for electric vehicles.
Retail sales of "new energy vehicles," which include electric and hybrid vehicles, significantly exceeded those of traditional vehicles, which saw a 13% decline in sales in 2022. Overall, retail sales of passenger cars rose 1.9% from 2021 to 20.5 million, according to CPCA data. This is less than an increase of more than 4% in 2021.
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Since 2019, the Chinese auto market has been in decline after a long period of rapid growth that has attracted many of the world's leading automakers. It is particularly difficult for foreign joint ventures to hold their market share in China as more domestic brands successfully embrace the booming electric vehicle market and overall sales stagnate.
Total sales of BYD models, including all-electric vehicles and plug-in hybrids, more than tripled from 2021 to 1.86 million vehicles. Geely Automobile Holdings Ltd. sold more than 262 thousand electric vehicles in 2022, of which about 72 thousand fell on Zeekr, its premium electric vehicle brand, launched at the end of 2021.
Tesla delivered more than 710 thousand electric vehicles from its Shanghai plant in 2022. In December, it sold about 42,000 cars in China, down from November, despite the company starting offering discounts. In order to boost sales, the company announced price cuts and discounts, putting its Model 3 and Model Y in competition with other mid-range electric vehicles from domestic rivals such as BYD, which is backed by Warren Buffett.
In June 2022, the Chinese car market experienced explosive growth, but by the end of the year it had come to naught, which was a sign that the country's economy was feeling the consequences of the year of the "zero covid" policy. Appetite for new cars began to weaken in September, and by November it was down more than 9% from 2021.
In December 2022, car sales in China rebounded, up 3% from 2021 to reach 2.17 million units, as consumers took advantage of the final weeks of auto tax cuts and subsidies for new energy vehicles before they expire at the end of the year.[4]
Number of electric vehicle charging stations in China doubles in a year
By the end of June 2022, 3.918 million charging stations were installed in China, which is 101.2% more than in the same period in 2021. This is evidenced by data from the China Alliance for the Development of Electric Vehicle Charging Infrastructure (EVCIPA), released in July 2022.
In the first six months of 2022, about 1.301 million charging stations were built in the country (+ 388.2% compared to 2021), including 381 thousand public (+ 228.4% compared to 2021) and 920 thousand private (+ 511.3% compared to 2021). In June 2022, about 108 thousand public charging stations were installed in China, which is 65.5% more than in the same month of 2021.
As of June 2022, the number of public charging stations in China reached 1.528 million units, including 665 thousand DC stations, 863 thousand AC stations and 472 complex charging stations of DC and AC, EVCIPA said after summarizing the data provided by alliance members.
According to EVCIPA, as of May 2022, from the beginning of 2022, an average of about 45 thousand public charging stations are built in China every month. The China five largest provinces account for 38,373 new electric vehicle chargers, with Guangdong leading the way with 17,164 new chargers to be installed in 2022. Cities Beijing Shanghai and increased the number of new charging stations for electric vehicles by 13,291.
A report released in March 2022 by Cornell University's Emerging Markets Institute said global sales of electric vehicles would rise from 4% of total auto sales in 2020 to 70% by 2040, with China becoming the leading market.[5]
China tightly controls supply chain of 80% of auto cells
Russia, EU countries and the United States will find it difficult to overcome China's control over the supply chain of electric vehicles, Bloomberg wrote. Global automakers depend on Chinese partners to varying degrees. Battery manufacturers of this country supply about 80% of the cells around the world, relying on a chain of extraction and processing, which is increasingly in the hands of this country.
Chinese test urban autopilot for production electric car
On July 9, 2022, it became known that Chinese the manufacturer electric vehicles XPeng showed tests of the beta version of the advanced City NGP driver assistance system, capable drive autonomously of urban conditions. Autopilot tested on serial. XPeng P5 electric car More. here
BYD stopped producing cars without electric motors
In early April 2022, the largest electric car manufacturer in China, BYD, stopped producing cars with internal combustion engines from February 2022 and now produces only electric and hybrid cars. Read more here.
2021
China is the leader in electric vehicle exports
In 2021 China , it increased exports electric vehicles by 260% on an annualized basis to almost 500 thousand units. Such data was provided by Nikkei analysts in their report in mid-March 2022. China has become the largest electric vehicle (EV) manufacturing country in the world, overtaking and, Germany USA which were among the top three.
Data from China's General Administration of Customs (GAC) shows that exports of electric passenger vehicles from the state, excluding commercial vehicles such as electric buses, reached more than 499,500 units in 2021. Meanwhile, according to the German Automobile Industry Association (VDA) and the Japanese Foreign Trade Organization (JETRO), in 2021 Germany exported about 230 thousand electric vehicles, the United States 110 thousand units, and in Japan 27 400 units.
Of the almost 500 thousand units of Chinese exports of electric vehicles in 2021, 230 thousand units were sent to Europe, deliveries to Oceania reached 18 thousand units, 6,187 units to Japan, and 8,160 units to the United States. Of the total exports, about 100 thousand - 200 thousand units were sent from Tesla factories in Shanghai, where Model 3 and Model Y are mainly produced.
China can become the global factory of the electronics industry due to the maturity of its supply chains most important components. China We have already established standards for the production of batteries used in electric vehicles (EV), raw materials for anode materials of batteries and assembly of EV, which allows the corresponding costs to be only half of the costs elsewhere.
China is also a key market for electric vehicle consumption. Autocar Japan, citing data from Jayto Dynamics, notes that in 2021, global EV sales will amount to about 4.2 million units, and almost half of them will be in China. Part of EV sales in China falls on miniature EVs, such as the Wuling Hongguang Mini, the price of which does not exceed $5 thousand. China's high-end electric car segment is dominated by Tesla, NIO and XPeng cars, while the middle-class segment is heavily focused on BYD and Great Wall Motor.
Thanks to subsidies from the Chinese government, sales of electric vehicles and plug-in hybrid electric vehicles (PHEVs) are on the rise. According to the China Association of Automobile Manufacturers (CAAM), in 2021, sales of electrofected cars in the country reached 3.52 million units, of which 3.33 million units are passenger and about 80% of the volume is EV.[6]
Electric car becomes China's best-selling car for the first time
In August 2021, for the first time in history, the electric car became the best-selling car in the Chinese market. We are talking about the Wuling Hongguang Mini EV model. The statistics were published in September 2021.
At the end of the last summer month of 2021, 1.5 million copies of the Wuling Hongguang Mini EV were sold in China, which is 175% more than a year earlier. Next are the Nissan Sylphy and Volkswagen Lavida sedans, and the fourth place was taken by the Tesla Model 3 electric car.
A key factor in the high popularity of the Wuling Hongguang Mini EV is the low price, which starts at $4,500. Obviously, for that kind of money, the car will not have advanced technical characteristics: the maximum speed limit is 100 km/h, the power of the Wuling Hongguang Mini EV electric motor is only 27 hp, and the range is 120-170 km. However, for short city trips in busy cities, these indicators are quite enough. With four seats, there is practically no trunk, but if you fold the back row, then the luggage compartment has a volume of 741 liters.
China aims to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. As part of this goal, since 2009, the PRC government has been offering subsidies to buyers of electric vehicles and exempting them from taxes, as well as actively building charging stations for such vehicles.
Most of the sales of electric vehicles are in large Chinese cities with a population of 5 million or more. This is mainly due to the higher benefits there. At the same time, an even higher demand for electric cars is observed in small settlements where people make short trips. Largely due to regional motorists, the inexpensive Hongguang Mini EV model took the lead.[7]
Chinese authorities will close electric car manufacturers that do not fulfill KPIs
In early September 2021, the Chinese government announced its intention to unite small electric vehicle manufacturers in the country. Over a ten-year period of development of this industry, approximately 300 enterprises have appeared in the PRC and some of them are hardly viable.
 | In the future, electric car manufacturers should become larger and more powerful. Now there are too many electric car manufacturers on the market, these companies are mainly small and fragmented. The market potential should be realized as much as possible, we will encourage the merger and restructuring of enterprises in the electric car sector in order to strengthen it, - said the Minister of Industry and Information Technology of China. |  |
As of September 2021, the Chinese electric vehicle market is the largest in the world, with about 300 manufacturers present. The rapid growth of China's electric car market was driven by government subsidies that encouraged consumers to switch to more environmentally friendly cars. According to the Ministry of Industry and Information Technology, the total subsidies of the central government for the purchase of environmentally friendly vehicles amounted to $5.1 billion in the five years to 2020.
Now, however, the Chinese government intends to reduce the number of manufacturers, since not everyone fulfills KPIs. The average capacity utilization rate for carmakers in China in 2020 was about 53%, according to calculations provided by Jiangsu provincial authorities to the National Development and Reform Commission in 2021.
According to Bloomberg, Chinese regulators are considering setting a minimum level of capacity use for the industry, and provinces that do not comply will not be able to approve new projects until excess capacity appears.[8]
SAIC-GM-Wuling JV leads China's electric vehicle market with $4,500 model
From July 2020, Chinese automaker SGMV (SAIC-GM-Wuling Automobile) dominates the world's largest electric vehicle market.
Almost every month, it is ahead of bigger players and even Tesla with its tiny, "naked" Hongguang Mini electric car, which starts at just $4,500. "It's the best-selling electric car in electric car-obsessed China at the moment."
BMW plans to build 360,000 electric vehicle charging points in China
In early June 2021 BMW Group , it announced that it plans to build 360,000 charging points electric vehicles by the end China of the year. This was stated by BMW CEO in China Jochen Goller on Thursday at the sustainability summit China held in. Beijing
The company also said BMW's Chinese plants plan to achieve carbon reductions by the end of 2021 as part of a program that should reduce emissions in the production chain by 80% by 2030. In addition, BMW plans to launch 12 all-electric models in China by 2023. Analysts note that this is not surprising - China is considered the world's largest market for electric vehicles. By 2025, a fifth of all cars sold in China are expected to be electric.
| | As a multinational company with a large market in China, BMW fully supports the country's transition to a low-carbon economy and puts sustainability at the forefront of our own strategy, Jochen Goller said in a statement. | |
Chinese President Xi Jinping has set a goal of making Chinese production carbon neutral by 2060, and BMW management has happily gone to meet him, intending to turn the country into an electric vehicle power plant. According to the Chinese plan for the development of cars on new energy sources, by 2025 the share of electric vehicles could grow to 20% of the total sales of new cars, while in 2021 this figure is only 5%. BMW intends to take advantage of this and plans to launch 12 all-electric BMW and Mini models in China by 2023, covering all major market segments. BMW's joint venture with Great Wall Motor Co. is set to begin production in 2023.[9]
Ban on driving Tesla electric cars to officials and military in China
In mid-March 2021 China , it banned the use of electric vehicles Tesla some government and military employees. At the same time, the country's leadership referred to national security concerns.
Tesla's auto-driving features, such as "Navigation on Autopilot," rely on cameras more than competitors' systems. Tesla CEO Elon Musk called lidars too expensive and unnecessary for autonomous systems.
However Chinese government , it was alarmed by the fact that Tesla's electric vehicle sensors record the environment, time and place of use of the car, and also track the driver's personal information, that is, they can become a source leaks and be used to spy on employees of key government agencies. China China is extremely concerned about whether electric cars can be sent to USA the collected data.
According to The Wall Street Journal, employees of the defense departments and state-owned companies of the PRC were ordered to stop driving Tesla cars to work. They were also forbidden to drive these cars into residential complexes where their families live.
At the same time, according to an analysis by JL Warren Capital, the Chinese market is starting to play an increasingly important role for Tesla. It was China that in 2020 helped the company reach a record volume of supplies around the world - more than 500 thousand cars. The best-selling electric car in China at the end of 2020 was the Model 3 model (more than 138 thousand cars). Tesla's Model 3 and Model Y took roughly 13% of the electric vehicle market in China in the first two months of 2021.
At the same time, Tesla is facing increasing competition in China, even when it comes to features like Autopilot. Xpeng (XPEV) became the first Chinese automaker to use Nvidia hardware to develop advanced driver assistance software, and its system is considered the most efficient in the country, ahead of similar products from Nio and Tesla.[10]
2020: Europe bypasses China to become largest electric vehicle market
In early February 2021, it became known that in 2020 Europe it overtook China and became the world's largest market. electric vehicles According to a report by analyst Matthias Schmidt, 1.33 million new electric vehicles were registered in key European markets China , and 1.25 million in. More. here
Notes
- ↑ China’s EV take-up rate rose to 53.9% in August as BYD led shift from petrol to batteries
- ↑ The Chinese EV Dilemma: Subsidized Yet Striking
- ↑ China's #1 oil company says peak gasoline demand has already passed
- ↑ China’s EV Sales Broke Record in 2022 as Overall Auto Market Stalled
- ↑ China adds about 1.301 million charging piles in first half of 2022, up 388.2% YoY
- ↑ China becomes largest EV manufacturer in 2021
- ↑ What electric vehicle manufacturers can learn from China – their biggest market
- ↑ China Vows to Consolidate the Bloated Electric Vehicle Industry
- ↑ BMW to Build 360,000 EV Charging Sites in China in Green Push
- ↑ Chinese military reportedly restricts use of Tesla cars among personnel
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