Automotive and Transportation China Electric Car Market Research Report | Page 3

China Electric Car Market
Despite the above drivers, the electric cars account for a negligible share in total car sales in the country. Lack of
infrastructure in the form of charging stations is the biggest challenge affecting the sales of electric cars in China.
The growth of electric cars would be dependent on penetration of charging stations.
The subsidy being offered for the electric vehicles in China could be close to $7,000 depending upon the battery
size. The subsidy is received by the company based on the electric car sales. Many companies put sub-standard
parts in the car to receive the subsidy. Moreover, companies also inflated their car sales figures to receive the
subsidy. Such incidences have put a bad name for the Chinese electric vehicles and affected the consumer
perception for electric cars. Now, the government has plans to stop the subsidy in the coming years and support
the industry by other measures such as introducing product specifications, standards for Chinese Cooperate
Average Fuel Consumption and New Energy Vehicle Credits, new safety rules and so on.
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