The potential of China in the electric car market
Trends
Elon Musk's Tesla in the USA was the one who initiated the technological innovation developed in electric mobility, but it is in China that the market has grown and strengthened the most. The serious pollution problem was the main driver for this change and currently the fleet of electric cars in China has already surpassed 5.1 million. The number itself is impressive, but it is especially the growth rates that deserve the most attention, indicating the dominance that China promises to have in the electric vehicle market. Since 2013, growth rates have annually exceeded 45%.
The growth of the electric car market in China
In 2018, the number of electric cars sold in China accounted for about 50% of global sales - 2.1 million vehicles were sold worldwide in the year 2018, according to the Global EV Sales Report for 2018 from EV-Volumes. These data allowed the Asian country to maintain its market share fixed at 4.2%. Meanwhile, the North American and European markets showed shares above 2%, lagging behind in the adoption of more sustainable and eco-friendly mobility.
But it is not only in terms of electric vehicles that China stands out. This country also leads the production of lithium-ion batteries, the energy source responsible for the locomotion of these vehicles. In 2017, China was responsible for 60.1% of the world's production of these batteries and, according to the Benchmark Mineral Intelligence, it is estimated that this leadership will not be contested in the next ten years. This report also estimates that Europe will register a remarkable growth, going from 5.3% in 2017 to 19.7% in 2028, even surpassing the USA.
Almost 500 Chinese manufacturers seek space in the electric car market
Looking at the number of electric car manufacturers registered in China, it is easy to understand the investment the country is making in this market. According to the news agency Bloomberg are about 486. Although the outlook suggests that not all brands will survive, the truth is that many will remain and continue on the path to success.
Baic, JAC Motors and BYD Motors and BYD are examples of successful brands in the Chinese market. With vehicles in the top 10 best sellers in the world in 2018, the sales potential of these brands is still very high considering that they are only selling to the domestic market. The slow process of opening up to the export market has several reasons:
the Chinese market has enough scale to absorb the current production;
Chinese electric vehicles still do not meet the strict safety standards applied in the USA and Europe.
