China Is Transforming the Automotive World While the Germans Are Lagging Behind
A recent report from the Centre for Automotive Research, at the University of Duisberg-Essen in Germany has predicted that the fast growing vehicle market in China could exceed 30 million units per year by 2025. Moreover, it also predicted that over 30 percent of those vehicles might become electric cars.
Last year, the total EV sale in China was nothing more than 2.1 percent. That might not seem much, but considering the percentage was doubled compared to what was seen in other countries, it’s clear that Chinese consumers are moving towards an EV friendly future.
Nevertheless, the report from the University of Duisberg-Essen had some harsh criticisms for the German automobile industry.
The report states that German automakers obsession to keep developing diesel engines for their vehicles can have ramifications down the road. China is slowly but steadily changing the automotive industry; while German carmakers think diesel vehicles might still have an importance even pass the 2030’s.
The report foretells that German manufacturers might have a hard time competing in the Chinese market, where existing local manufacturers will have the upper hand in dealing with the Chinese government's aggressive policies that favour electric cars.
However, German manufacturers are not alone. Recently, the Japanese automotive giant Toyota had to rethink its plans when the Chinese government decided to reclassify conventional hybrid vehicles such as the Toyota Prius as a traditional gasoline-powered car, essentially removing it from China’s new energy vehicle category.
As far as the Chinese government is concerned, the Toyota Prius is nothing more than a glorified gasoline powered car. As a result, the head of Toyota’s China operations, Hiroji Onishi, told the press that the company would focus on selling plug-in electrics and EV’s in the near future.
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Image Source: telegraph.co.uk
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