China Electric Vehicle Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Propulsion Type (Battery Electric Vehicle (BEV) and Hybrid Electric Vehicle (HEV)), By Drive Type (All Wheel Drive, Front Wheel Drive, and Rear Wheel Drive), By Range (Up to 150 Miles, 151-300 Miles, and Above 300 Miles), By Component (Battery Pack & High Voltage Component, Motor, Brake, Wheel & Suspension, Body & Chassis, and Low Voltage Electric Component) and Regional Forecast, 2023–2030

The China electric vehicle market size is projected to record a CAGR of 18.4% during the forecast period.

China has seen a significant rise in the production and sales of EVs. The country’s automotive industry witnessed considerable growth in terms of the production of these vehicles and is expected to grow even further during the forecast period. The country holds the biggest share in electric vehicle market share. This growth is attributed to the presence of key manufacturers, with an estimated 500 EV manufacturing companies working in the world’s largest vehicle market. Rising environmental concerns and a worrying increase in exhaust emissions have prompted the country to focus on the development of sustainable transportation.

LATEST TRENDS

Rising Demand for EVs for Commercial Applications to Boost Market Growth

In China, the light electric commercial vehicle market share has increased from less than 1% to 10% over the past two years and might show significant growth during the forecast period. This growth can be credited to the development and introduction of new electric commercial vehicles by OEMs. For instance, in September 2022, BYD Company launched its new eBus Blade Platform — an electric bus chassis made from BYD’s Blade Battery technology. Also, the range upgraded the eBus model and introduced two zero-emission trucks.

DRIVING FACTORS

Rising Sales of EVs Will Drive Market Growth

By launching various initiatives to increase electric car sales, China is determined to reduce vehicle emissions. However, the country plans to lessen its dependence on oil imports, boosting China electric vehicle market growth.

Due to the considerable presence of key players, China is the top country in the Battery Electric Vehicles (BEVs) market. The OEMs are focusing on the development of battery electric vehicles, while still trying to increase efficiency significantly across vehicle systems, especially in e-powertrains. This development will drive the market growth during the forecast period. For instance, in May 2022, Nidec Corporation announced that it had decided to build a flagship factory to produce its traction motor system, E-Axle, in the city of Pinghu, Zhejiang Province, China. The new factory is expected to be the fifth traction motor production site.

RESTRAINING FACTORS

High Manufacturing Costs and Low Battery Range May Hamper EV Market Growth

The EV sales have increased after the COVID-19 pandemic. Electric vehicles are categorized into two types, such as passenger cars and commercial vehicles (electric vans, electric trucks, and electric buses), but they cost more than ICE vehicles. The average range of an EV is between 200 to 350 miles due to lower battery density. This factor may hinder the market growth. Manufacturers are focusing on increasing the range of EVs and reducing EV prices. For instance, in November 2022, BYD Company announced that it would launch a new premium brand in the first quarter of 2023 under the name ‘Yangwan’.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, this market depicts the presence of established and emerging electric vehicle companies. BYD dominated the China market in 2022. The company also became the bestselling electric vehicle brand in the same year.

Some of the other companies with a considerable presence in this market include Tesla, GAC Aion, Hozon, Li Auto, Nio and Xpeng Motors.

LIST OF KEY COMPANIES PROFILED:

• BYD Global (China)


• Tesla (U.S.)


• GAC Group (China)


• Hozon (China)


• Li Auto (China)


• Nio (China)


• Xpeng Motors (China)


• Leapmotor (China)


• Aito (China)


• Zeekr (China)

KEY INDUSTRY DEVELOPMENTS: 

• February 2023 – BYD has added two new dealer corporations to its network in the European region. Motor Distributors Ltd (MDL) is active in Ireland and will offer BYD models at select locations including Dublin and Cork. RSA is a dealer that already works with BYD in Norway, and it will offer the Chinese EVs in Finland and Iceland. BYD initially launched three EV models in select European countries at the end of 2022. Two more series could follow in 2023.


• August 2022 - GAC Group announced that the company was investing USD 329 million in setting up a subsidiary to produce electric drive systems. The new subsidiary planned to build production lines with 400,000 integrated electric drive systems annually by 2025.

REPORT COVERAGE

To gain extensive insights into the market, Request for Customization

The market report provides a detailed analysis of the China market and focuses on key aspects, such as leading market players, vehicle type, and leading applications of the product. Besides, the report offers insights into the latest market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that contributed to the market’s growth in recent years.

Report Scope & Segmentation