Views: 0 Author: Li Publish Time: 2025-01-25 Origin: Site
China is poised to become the first country in the world where electric car sales will surpass those of traditional internal combustion engine vehicles by 2025. This remarkable development indicates that China will achieve its goal set in Beijing a decade earlier than anticipated.
According to predictions from investment banks and research institutions, including UBS, HSBC, Morningstar, and Wood Mackenzie, China's electric vehicle (EV) sales—comprising both battery electric vehicles and plug-in hybrids—are expected to exceed 12 million units by 2025, marking an approximate growth of 20%. In contrast, the sales of conventional fuel vehicles are projected to decline by over 10% the following year, dropping below 11 million units, nearly a 30% decrease compared to 14.8 million in 2022.
These projections suggest that the Chinese government’s target, set in 2020, to have electric vehicles account for 50% of total automobile sales by 2035 can be achieved ten years ahead of schedule. This achievement would position China several years ahead of Western countries, making it the first to reach this historic milestone.
The Rise of Electric Vehicles in China and the Slow Transition in the West
Data from Shanghai-based consulting firm Automobility indicates that the market share of foreign automobile brands in China has plummeted to a historic low of 37% in 2024, down from 64% in 2020. Meanwhile, the annual growth rate of the electric vehicle market in China is approaching 40%.
In December of this year, General Motors announced a restructuring of its joint venture with SAIC Motor Corp, leading to non-cash charges and write-downs exceeding $5 billion. Similarly, Porsche released a statement predicting potential write-downs of up to €20 billion on its holdings in Volkswagen. On December 23, in response to the significant changes occurring in the automotive industry and external environment, Japan's second and third-largest car manufacturers, Honda and Nissan, announced the initiation of merger discussions.
The Financial Times notes that the slowdown of electric vehicle sales growth in Europe and the United States reflects the sluggish transformation of the traditional automotive industry in the West. This is compounded by uncertainties surrounding government subsidies and a rising wave of protectionism against imported vehicles from China. The research director at Wood Mackenzie remarked that China's momentum in the electric vehicle sector signifies successful advancements in technology development and securing key resources along the global supply chain. The sheer scale of the industry has led to significant reductions in manufacturing costs and consequently lower prices for consumers.
Conclusion: The Future of Automobiles in China
As China rapidly advances in electric vehicle technology and production, the shift from traditional sedans and pickups to new energy cars is becoming increasingly visible. The rise of electric cars is not just about the transition from combustion engines; it is a fundamental change in the automobile landscape. With a growing number of car dealers adapting to this new reality, the market for electric cars will continue to expand, making electric vehicles more accessible to consumers across the nation.