25%

the rates of sector growth from 2020 to 2025 (CAGR)

50 bn

dollars – the governmental investment in the sector

30

number of Chinese cities that are working towards using the electric vehicles in their city transportation

Number of electric cars sold in 2019

Electric cars in China

Electric cars in China generate half the global sales statistics. China became a leader in 2015. In 2016 it registered more than 350 thousand of electric cars. Between 2008 and 2016 the sector grew 4 times. In 2018 there was 1,6 electric cars per every 100 Chinese citizens. It’s a growing and promising sector for foreign investments.

Electromobility in China


Previously the unquestionable leader in the sector was the US., but the so called ‘electric boom’ that led to the registration of over 200 thousand electric cars in China in 2015 led the country to the very top of the world. 2 years later city of Shenzhen introduced a flotilla of the electric buses, and in 2018 implemented electric city taxis.

Electric cars in China are also more popular than in the other countries. In 2018 alone China sold more than a million of vehicles, 3 times more than the US. Governmental investment in this sector account for more than 50 billion dollars, which led to tripling of the number of the Chinese local producers. Now there’s more than 400 of them.

Current trends in China

In 2019 the government closed half of the donations and investment in the sector, which led to the drop in sales. In the first months of 2020still grew from 4.5% to 4.7%, but the statistics of sales dropped from 26,8 million to 24,5 million.

This tendency was fuelled by the Covid-19 pandemic. China Association of Automobile Manufacturers presented the statistics, that show the basic trends in the car sales in China in February 2020. There was a 79% drop in comparison to the same time last year. The specialist agree, that the sector is resilient and flexible enough to mitigate the losses, thanks to the rapid economical growth of China.

Mordor Intelligence estimates, that the sector of electromobility is going to grow since 2020 to 2025 (25% CAGR). More than 30 cities implemented the programs of changing the vehicles to the electric types, most notably Changzhou, Zhuhai, Dongguan, Foshan and Zhongshan as well as Nankin, Hangzhou, Shaanxi and Shandong.

Free charging station for the electric cars

Financial incentives and lures are also being implemented, both by the governmental and private sectors. Electric cars are exempt from the sales tax. International Energy Agency estimates, that per every car there’s 6-10 thousand dollars discount. Additionally, between 2014 and 2016, Wuhan implemented a project of free charging stations for the vehicles registered in the area.

Dennis Zuev from Lancaster University points out, that almost all of the 90 million people living in the Shandong Province use Low Speed Electric Vehicles (LSEVs) – small and cheap electric vehicles that do not require special licensing nor license plates. This trend is common also in the  ‘large cities’.. This type of the vehicle costs around 5 thousand dollars and can go 70 km/h. „Research in China” points out, that the boom and systematic growth of the popularity of this type of cars led to more than 2 million users in 2020.

Investment in Europe

The most notable examples of the Chinese-European cooperation are the Dongfeng-Peugeot Société Anonyme agreement. Both concerns work towards establishing the modular platform e-CMP, which will provide the bases for the production using the segments B and C of Peugeot, Citroen and Dongfeng brands. The companies cooperate in terms of HR, training, research&development as well as marketing, finances and production.

French PSA is working towards ensuring the remission of the carbon dioxide and further development of the countries. Strategic cooperation within the DPCA will allow the company to deal with the Chinese production framework. Considering the boom of electric cars in China, PSA is considering entering the market with its own vehicles.

Summary

The statistics of sales and production of the electric cars in China are growing rapidly. Considering the popularity and the leadership of the country in the global rankings, the cooperation is highly promising and offers various benefits.
The examples of the international cooperation in Hungary, Germany, Poland and France shows the tendencies of the Chinese producers who work toward entering other markets.