Tag Archives: EVs

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EV sales in China in 2024

As the world’s largest automotive market, China has been at the forefront of the electric vehicle (EV) revolution. By 2024, the country’s EV industry has reached new heights, driven by government policies, technological advancements, and shifting consumer preferences.

In 2024, China’s EV market continues to dominate globally, accounting for over 60% of worldwide EV sales. According to the China Association of Automobile Manufacturers (CAAM), EV sales in the country surpassed 10 million units in 2024, marking a 25% year-on-year increase. This growth is fueled by the rapid adoption of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), which now represent nearly 40% of all new car sales in China.

The surge in EV adoption is largely attributed to the Chinese government’s ambitious carbon neutrality goals. By 2024, China has implemented stricter emissions regulations and extended subsidies for EV purchases, particularly in rural areas where EV penetration was previously low. Additionally, the expansion of charging infrastructure has alleviated range anxiety, making EVs a more practical choice for consumers.

Key Players in the Market

China’s EV market is highly competitive, with both domestic and international automakers vying for market share. Domestic brands like BYD, NIO, Xpeng, and Li Auto continue to lead the charge, collectively holding over 70% of the market. BYD, in particular, has solidified its position as the top-selling EV manufacturer in China, thanks to its affordable pricing and innovative battery technology.

International automakers, including Tesla, Volkswagen, and BMW, have also made significant strides in the Chinese market. Tesla’s Gigafactory in Shanghai remains a critical production hub, enabling the company to offer competitive pricing and meet the growing demand for its Model 3 and Model Y vehicles. Meanwhile, traditional automakers like Volkswagen have accelerated their electrification efforts, launching new EV models tailored to Chinese consumers.

Technological Advancements Driving Growth

Technological innovation has been a cornerstone of China’s EV success in 2024. Breakthroughs in battery technology, particularly in solid-state batteries, have extended vehicle ranges and reduced charging times. Chinese companies like CATL and BYD are leading the charge in battery production, supplying not only domestic automakers but also global manufacturers.

Moreover, advancements in autonomous driving technology have made EVs more appealing. Companies like Baidu and Huawei have partnered with automakers to integrate advanced driver-assistance systems (ADAS) and smart connectivity features into their vehicles. These innovations have positioned Chinese EVs as some of the most technologically advanced in the world.

Challenges Facing the Industry

Despite the impressive growth, China’s EV market faces several challenges in 2024. One major concern is the oversupply of EVs, which has led to intense price competition and shrinking profit margins for automakers. Additionally, the reliance on rare earth materials for battery production has raised concerns about supply chain sustainability and environmental impact.

Another challenge is the uneven distribution of charging infrastructure. While major cities like Beijing, Shanghai, and Shenzhen boast extensive charging networks, rural areas still lag behind. Addressing this disparity will be crucial for sustaining long-term growth.

The Road Ahead

Looking ahead, China’s EV market shows no signs of slowing down. The government’s commitment to achieving carbon neutrality by 2060, coupled with ongoing investments in renewable energy and smart transportation, will continue to drive EV adoption. Analysts predict that by 2025, EVs could account for over 50% of all new car sales in China.

Furthermore, the global expansion of Chinese EV brands is expected to intensify. Companies like BYD and NIO are increasingly targeting international markets, particularly in Europe and Southeast Asia, where demand for affordable and high-quality EVs is growing.

As the world transitions to a greener economy, China’s EV market will undoubtedly remain a key driver of change.

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The future of PHEV cars

Since the EU passed a regulation banning the sale of ICE cars from 2035, European manufacturers have been trying to find a solution to resist the invasion of cheap Chinese cars. The price of EVs has started to rise and buyers have increasingly chosen hybrids. However, now PHEVs could be a problem for manufacturers.

A recent EU study showed that plug-in hybrids used electric motors between 70 and 85 percent of the time, but the reality was very different. A closer look at the data showed that drivers used the combustion engine more often than previously thought, lowering the use of electric motors to less than 50 percent.

The study showed that drivers did not charge the batteries as needed, but used combustion engines that emitted more CO2. Therefore, the EU adjusted the calculation of CO2 emissions of PHEVs in normal use, increasing the efficiency factor, the percentage that runs on electricity, and manufacturers extended the electric range to counteract this. However, manufacturers had to install more powerful charging systems (up to 50 kW) and report electricity consumption so that the EU could update its CO2 calculation model.

It should not be forgotten that EVs must account for at least 30 percent of total sales, which is currently almost impossible for most manufacturers. This could give an opportunity for manufacturers to attract a larger number of customers by reducing the prices of hybrid cars, but also bring a new headache because Asian manufacturers, which are leading in electrification, have greater opportunities compared to the competition.

Source: Automotive News Europe, Photo: Land Rover

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EVs more popular than ICE cars in China

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