10/14/2019

The global electric-vehicle market is amped up and on the rise

The Chinese market expanded by 72 percent over the previous year in 2017, solidifying China’s leadership position in EV sales. The country now has a larger EV market—primarily BEVs—than Europe and the United States combined. With a sales share of around 94 percent, domestic OEMs currently dominate the Chinese EV market.

Generous subsidies and tight regulation continue to drive much of the growth. Electric vehicles are exempt from license-plate lotteries and auctions in some Chinese cities, and this still plays an instrumental role in promoting EVs. After a successful pilot program in selected cities, the Chinese government decided last year to introduce green license plates for new energy vehicles (NEVs) across the country. At the end of 2017, the plates were rolled out to all provincial capitals and other selected major cities, with the remaining cities to follow in the first half of 2018. Car owners with these license plates will be eligible for preferential treatment. Furthermore, China’s national and local subsidies for electric vehicles are among the world’s highest, reducing consumer concerns about the comparatively high up-front cost.

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