19 July 2017
China’s Electric Vehicle Market In Figures
For years, electric vehicles (EVs) have lagged behind their surrounding hype in terms of technology and penetration. But, with much of the pivotal force coming from China, the global EV market is finally turning the corner.
Bolstered by breakthrough growth in Chinese sales, the number of plug-in cars circling the world’s roads reached two million in 2016. This momentum is set to continue, with the government’s Made in China 2025 plan targeting an ambitious five-fold increase in the country’s EV fleet by 2020.
More importantly, this regulatory push, combined with a dynamic market and severe pollution problems, have convinced industry leaders that a battery-powered outlook for the world’s most populous country is not only plausible but inescapable. Tencent’s investment in Tesla, and the latter’s interest in opening a factory in Shanghai, showcase China’s growing protagonism in the e-mobility landscape.
Scale effects are crucial in the automotive industry, which is why China’s promising EV market has unmatched power to trigger transformation. Our work in the sector shows us that change is already underway, even though plug-ins remain a niche segment. Companies along the supply chain are facing a decision: prepare for change, or risk being left behind.
In this China Focus, we take a snapshot of the Chinese EV market and zoom in on players that are choosing the forward-looking path. From OEMs to suppliers, they are scanning the market for opportunities, building strategic partnerships, and ramping up their R&D, all to secure a place in China’s promising low-emission future.