China's electric vehicle (EV) market is reaching a crucial point as government subsidies are set to end within two years. The country's first nationwide EV subsidy program was launched in December 2015, and the second one will be implemented by 2020. The companies will need to maintain consumer levels, especially as better-known brands like Tesla move into the world's largest market. Domestic brands have taken advantage of the market size to build cheaper models and, with EV uptake expected to reach 18% by 2025, they look ready to succeed.
China's electric vehicle (EV) market is reaching a crucial point as government subsidies are set to end within two years. Beijing's EV subsidies programme, which has been running since 2010, is due to finish by 2020, at which point the country's EV manufacturers such as Nio and Xpeng will face a test. The companies will need to maintain consumer levels, especially as better-known brands like Tesla move into the world's largest market. Domestic brands have taken advantage of the market size to build cheaper models and, with EV uptake expected to reach 18% by 2025, they look ready to succeed.