China’s Electric Vehicle Industry: A Decade of Dominance
A decade ago, President Xi Jinping delivered a speech that would set China on the path to becoming a powerhouse in the electric vehicle (EV) industry. Emphasizing the importance of new-energy vehicles, Xi highlighted the need for China to claim a leading position in this sector to compete globally.
In 2014, China sold around 75,000 EVs and hybrids, with the domestic market previously dominated by international manufacturers. However, with Beijing’s focus on fuel-efficient and alternative energy vehicles, the landscape began to shift. The state’s guidelines and investments in the industry paved the way for China to become the world’s largest auto market, selling 9.5 million electrified vehicles in 2023.
Tesla’s entry into the Chinese market in 2019 served as a catalyst for local players to improve their EV offerings. By 2024, China had overtaken Japan as the largest auto exporter, with homegrown champion BYD Co. surpassing Tesla as the world’s largest producer of EVs.
Despite these achievements, tensions with the West have escalated. Trade barriers, including increased import tariffs and investigations into unfair advantages from government subsidies, have hindered Chinese automakers’ efforts to expand globally.
SAIC Motor Corp., one of the key players in China’s EV industry, has invested significantly in research and development, positioning itself for continued success in the coming years. With advancements in technologies like solid-state batteries, China aims to maintain its edge in the fiercely contested EV market.
As China’s EV industry continues to evolve, the next decade promises further innovation and growth, despite the challenges posed by trade wars and international competition.