Automotive and Transportation China Electric Car Market Research Report | Page 2

China Electric Car Market
The Chinese government subsidised the purchase of electric vehicles in 2009, however, this subsidy was mostly
restricted to public vehicles. In 2013, the subsidy programs were extended to the electric cars considerably
benefiting its sales. The 2013-2016 period can be considered as the booming period for the China electric car
market when the sales saw a significant growth. Over the next few years, the government has plans to gradually
remove the subsidy making electric vehicles as a self-sustained market. Sub-standard products and lack of
charging stations are the main challenges of the China electric car market.
The Chinese electric car industry is benefited by strong drivers such as government support and rising income
levels. Rising per capita income is encouraging people to own private vehicles driving the electric car market in
the country. Increasing aspirations among the people to own cars can be met in a sustainable way by electric
cars. Moreover, the government has plans to support electric cars to reduce its dependence on the imported
fossil fuel.
One of the major advantage that China has over other countries is a developed electric battery manufacturing.
There are close to 150 electric vehicle battery manufacturers in China. As battery is the key component of an
electric car, a sufficient and developed battery manufacturing capacity in the country would reduce the
dependence on imports and sustain the prices of electric cars.
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