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China, the next superpower … in electric cars!

Zhidou D2 EV
They may not all be pretty but the invasion is coming.

China's growth in electric car manufacturing is set to flood the market in the very near future.

Britain is the third largest market for electric cars (EVs) in Western Europe, sales of alternatively fuelled cars so far, this year, have been around 4%. March this year being a particularly good month. A number of car brands offer these hybrid vehicles, including Renault, Mitsubishi and Nissan to name but a few. And in the US, although petrol engines are more of a popular choice, there has been an interest towards EVs; Tesla and Chevrolet being the main contenders creating sales of 1% on EVs.

And the drive for these types of vehicles? Quite simply, to decrease CO2 emissions. By 2025 in Europe, the CO2 target is 70g/km (Currently the average car emits 120g/km).

China, the world’s biggest car market, has the potential for increased sales of EVs and hybrids even more so than in the west due to the large population, increasing levels of pollution and the lack of a natural resource; oil.

Over 28 million cars were sold in China in 2016 making an increase of 13.7% from the previous year leaving the US behind with their sales of 17.5 million. According to China’s Ministry of Industry and Information Technology (MIIT), they predict car sales will stand at 35 million by 2025 and they require 20% of that figure to be the New Energy Vehicles (NEVs).

China not only offers imported cars but they have an array of domestic brands including BYD, BAIC, Geely and SAIC all of which offer an electric ‘fuel’ alternative. Smaller companies have been merged with larger ones, ideas have been shared through ventures with Western brands all to improve the health of China’s domestic cars. And so far, Chinese brands take 45% of the home market. But with increased knowledge of EV making gained through Western car manufacturers, there’s an opportunity to develop better EVs at a lower cost than imported brands to sell within China which will decrease the need for the more expensive imported car in their country. Only time will tell the outcome of China’s EV market.

If you would like to see just how big the Chinese electic car industry is, then take a look at the chart on chinaautoweb for the Top 40 best-selling China made electric cars in 2016.

June 2017

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