Title: China’s EV Market: Why a Storm of Competition Is Coming
Headings: China’s Electric Vehicle Market: A Storm of Competition Is Coming
Management
China’s Electric Vehicle Market: A Storm of Competition Is Coming
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Content: Bullish Growth Outlook
Even in the face of those headwinds, China’s EV industry is expected to continue growing; sales grew 62% in 2018 to 1.3 million vehicles, while those of fossil fuel-driven cars fell nearly 3% last year to about 28 million vehicles, as they did in the U.S. and in Europe as well. No major casualties are expected in the immediate aftermath of the withdrawal of China’s EV subsidies. “ [ China’s] EV makers – which for now prioritize volumes and market shares over profitability – will subsidize customers for the time being to mitigate the subsidy cuts, while passing on some of the losses to suppliers,” said ratings agency Fitch. Over time, China’s EV industry has more than enough room to grow. Even as it is the world’s biggest market for EVs, sales of those vehicles account for just about 4% of total vehicle sales, MacDuffie noted. Some studies projected EVs to command a market share of 50% by 2025. Growth opportunities await Chinese EV battery makers as well. MacDuffie pointed out that Western makers of EVs have mostly been using either Japanese or Korean batteries. However, as they expand their EV manufacturing in China, they would have to source Chinese batteries as mandated by the government.