In 2020, the Chinese government set a goal for electric vehicles to account for half of new car sales by 2035, but at this rate, China will reach that goal a decade early. According to the latest data, sales of electric cars in China will reach 12 million units in 2024, surpassing cars with combustion engines for the first time ever.

The latest information says that in 2024, sales of cars with combustion engines could fall to less than 11 million units, which is 10 percent less than in 2023. That’s no surprise, considering China has big plans for EVs. Plug-in hybrids are expected to be a hit this year with 4.39 million units sold, rising to 6.05 million vehicles over the next eight years.

Predictions are that once the transition point is reached, electric vehicles will continue to grow and could exceed 18 million units by 2034. By then, sales of cars with combustion engines could drop to just 2.93 million.

What could worry the manufacturers of cars with combustion engines in China is that these vehicles will have very little space in the domestic market. In 2024, the market share of foreign cars fell to 37 percent compared to 64 percent in 2020. This shows that Chinese buyers are increasingly choosing domestic vehicles in the largest new car market on the planet, resulting in a reduction in a significant source of revenue for many manufacturers.

China, as the world’s EV leader, is slowly killing its competition. EV production is turning into a game of survival, and the winners are likely to be the manufacturers that can deliver quality vehicles at affordable prices. This will also mean the shutdown of some of the all-electric brands that have been present on the market for years.

One of the first victims in the cruel automotive world is the American brand Fisker. In 2023, Fisker had big plans, production of 40,000 electric vehicles, but only 10,000 left the production lines. The Ocean SUV has received mixed reviews, with Consumer Reports claiming that the promise has not been fulfilled, while regulators have addressed issues with brakes and doors that won’t open. Further complicating the situation for Fisker was the fact that the Ocean lost its place on the list of tax-deductible electric vehicles unless leased because it was manufactured outside of North America. Now, they are bankrupt.

Source: Reuters