- 19 Aug 2023 23:19
#15283389
China has a population of 1.4 billion people, more than 4 times larger than the U.S.
China accounts for 28 percent of world carbon emissions.
80% of new electric vehicles sold in China are now Chinese brands, mainly because they are cheaper than brands from other countries. Companies like Ford, GM, and Tesla have lost market share.
But the demand for electric vehicles in China is now slowing. Part of this may have to do with the current slump in China's economy. The total number of car sales (not just electric) went down 2.9% in June. Tesla's reported their sales of electric cars in China went down by 31% from June to the month of July.
After strong electric vehicle sales in 2022, the Chinese car market is facing a setback in growth in 2023. Although sales were 10% higher in 2022 than 2021, total sales of electric cars in 2023 are expected be half of what they were 2022, and the share of electric vehicles out total new car registrations stagnated in 2023. One part of the reason may be that in 2023 the government has eliminated subsidies for electric cars (meaning consumers will now be liable for paying the whole cost). Electric vehicles account for 21% of the cars in China, with an additional 8% consisting of plug-in hybrid (half electric) cars.
Electric vehicles can often be more practical in China than in the U.S. because the majority of the population lives in highly urbanized areas where typical commuting distances are short. But a larger share of the Chinese population would struggle to pay the higher expense of an electric car.
Some believe the market in China is saturated and it will be more difficult to increase the percentage of electric cars beyond current levels.
In response to the slowing demand in China, it is forecasted the Chinese electric car brands will try to increase their exports selling in other countries, but this will hurt American companies manufacturing electric cars.
sources:
Business Insider, The bad news for automakers in China is only getting worse, [email protected] (Alexa St. John) 8/19/2023
China's car sales shrink 2.9% in June as big-ticket spending falters,
Reuters, July 10, 2023
Tesla's China-made EV sales in July down 31% mth/mth , Reuters, August 3, 2023
The dominant Chinese electric car market is slowing, ING, 28 February 2023
China accounts for 28 percent of world carbon emissions.
80% of new electric vehicles sold in China are now Chinese brands, mainly because they are cheaper than brands from other countries. Companies like Ford, GM, and Tesla have lost market share.
But the demand for electric vehicles in China is now slowing. Part of this may have to do with the current slump in China's economy. The total number of car sales (not just electric) went down 2.9% in June. Tesla's reported their sales of electric cars in China went down by 31% from June to the month of July.
After strong electric vehicle sales in 2022, the Chinese car market is facing a setback in growth in 2023. Although sales were 10% higher in 2022 than 2021, total sales of electric cars in 2023 are expected be half of what they were 2022, and the share of electric vehicles out total new car registrations stagnated in 2023. One part of the reason may be that in 2023 the government has eliminated subsidies for electric cars (meaning consumers will now be liable for paying the whole cost). Electric vehicles account for 21% of the cars in China, with an additional 8% consisting of plug-in hybrid (half electric) cars.
Electric vehicles can often be more practical in China than in the U.S. because the majority of the population lives in highly urbanized areas where typical commuting distances are short. But a larger share of the Chinese population would struggle to pay the higher expense of an electric car.
Some believe the market in China is saturated and it will be more difficult to increase the percentage of electric cars beyond current levels.
In response to the slowing demand in China, it is forecasted the Chinese electric car brands will try to increase their exports selling in other countries, but this will hurt American companies manufacturing electric cars.
sources:
Business Insider, The bad news for automakers in China is only getting worse, [email protected] (Alexa St. John) 8/19/2023
China's car sales shrink 2.9% in June as big-ticket spending falters,
Reuters, July 10, 2023
Tesla's China-made EV sales in July down 31% mth/mth , Reuters, August 3, 2023
The dominant Chinese electric car market is slowing, ING, 28 February 2023
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