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China Bracing Itself For Global Dominance in Electric Vehicle Market

A couple of weeks ago, my colleague Florin Amariei wrote an in-depth and captivating piece on China's unstoppable automotive takeover, "China Thanks Tesla, the Asians Will Take It From Here," and I couldn't agree more with him. It's not a secret anymore. Combustion giants like General Motors and Volkswagen are already losing to local players in China's rising electric vehicle market.
Wuling Motors Plant 16 photos
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Electric vehicles are an emerging industrial revolution, and China is on a mission to seize the moment. The country that also doubles up as the leading automotive market globally saw its electric market rise by 154% in 2020 despite the global pandemic and an industry-wide shortage of microchips.

According to the China Association of Automobile Manufacturers, the number of new energy passenger cars (combination of plug-in hybrids and EVs) more than doubled to 1.49 million units in the first four months of 2022 from the previous year.

NEVs (New Energy Vehicles), as China calls them, accounted for about 23% of the Asian country's passenger car market, while overall vehicle sales fell by 12%, revealing a steep decline in the demand for ICEs, Reuters reported.

If global automotive leaders think their automotive dominance will last for another term, they might be in for a rude shock.

Most local consumers in the Asian country are fixated on buying local brands such as BYD or Nio and might only consider getting an overseas brand if they are looking for a gasoline-powered alternative, Reuters discovered.

With current skyrocketing fuel prices and demand for EVs in an estimated $500 billion automotive market, electric car sales are rocketing in China.

Additionally, data from China Passenger Car Association reveal Tesla was the only foreign brand among the top 10 auto manufacturers in the country's NEV segment this year.

Industry critics don't think China has a shot at global automotive dominance, arguing it's premature judgment. But with the worldwide recession, geopolitical issues, and the average price of a base-model EV steadily rising above $40,000, China, with its abundance of raw materials, battery industries, established EV manufacturers, and a supportive government, could sweep everyone off their feet.


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