China Emerges as a Dominant Force in the Global Electric Vehicle Revolution

In the latest Global Electric Mobility Readiness Index (GEMRIX 2023), compiled by Arthur D. Little, China has asserted itself as a global powerhouse in the electric vehicle (EV) movement, securing the second position on the ranking. The rapid rise of China in the EV sector is testament to its unwavering commitment to sustainable transportation, the report said.

The Top EV Nations

# 1 Norway

# 2 China

# 3 Germany

# 4 Singapore

# 5 United Kingdom

# 6 Hong Kong

# 7 United Arab Emirates

# 8 United States

# 9 Qatar

# 10 New Zealand

China, with its sprawling EV industry, is the world’s largest producer of electric vehicles, accounting for a remarkable 58 percent of global production, as confirmed by the International Energy Association (IEA). The nation’s share of exported EVs has surged from 25 percent in 2021 to 35 percent, underscoring China’s growing influence in the global EV market.
Plug-in electric vehicle (BEV/PHEV) sales in China comprised nearly 25 percent of the total automotive sales in 2022, with an increasing emphasis on local automotive manufacturers. In terms of vehicle diversity, China stands as the most developed EV market worldwide, boasting more than 90 brands offering over 300 models across all price ranges, from compact micro cars to luxury vehicles. Local manufacturers enjoy a commanding market share of over 80 percent, featuring prominent names like BYD, Wuling, Chery, and Changan. Notably, China is also home to internationally renowned EV start-ups, including Nio, XPeng, Zeekr, and Aiways.

With China representing roughly 50 percent of the global BEV market, international Original Equipment Manufacturers (OEMs) are required to adapt to local preferences and regulations to remain competitive. To succeed in this robust market, OEMs must not only enhance their technological capabilities but also establish strong local ties to unlock additional opportunities.

In 2022, Chinese OEMs such as XPeng, Nio, Geely, and BYD reported record-breaking growth in EV sales. These regional companies have consistently provided a superior consumer experience, offering features such as robust human-machine interfaces and advanced connectivity, setting them apart from the competition.

China’s dedication to expanding its EV infrastructure is evident in the rapid growth of its charging network, with over 2.5 million charging stations added in 2022 alone. China’s charging infrastructure growth has kept pace with other emerging technologies, such as battery-swap stations, establishing the nation as the leading figure in the global EV infrastructure landscape.

The Chinese government is playing a pivotal role in supporting the growth of the EV industry through regulatory policies and incentives. These initiatives extend to both EV manufacturers and consumers, including substantial financial benefits. Buyers can receive incentives ranging from $1,500 to $2,000 per vehicle, while manufacturers are entitled to receive $1,000 to $1,500 in support.

China’s remarkable journey to becoming a global EV juggernaut is a testament to the nation’s vision for sustainable and eco-friendly transportation, and it remains poised to shape the future of the electric vehicle industry on a global scale.