Market update: China to dominate electric vehicle market for years to come
China is predicted to strengthen its status as the global leader in the production of Electric Vehicles (EV) over the next 20 years, according to a report by Bloomberg. This prediction comes as a result of a government drive towards the production of more environmentally friendly vehicles that cut down on Carbon emissions.
China overtook the USA as the world’s top producer of EVs in 2015 and the gap between the two countries is getting bigger with each year. The pace of growth in EV sales in China is unprecedented, with sales predicted to double from 1 million EV sales in 2018 to over 2 million next year.
International car makers have to adapt to this rapid change by investing huge amounts into Research & Development in new technologies, in order to keep pace with Chinese EV manufacturers. Local governments across China have helped to boost sales in major cities, by making the registration process for EVs easier, while licenses for traditional vehicles are being increasingly restricted.
This is part of the government’s plan to transition drivers over to more environmentally friendly modes of transport over the next few decades. EV cars will account for 8 percent of China’s passenger-vehicle sales next year, 20 percent in 2025 and 68 percent in 2040, according to the report. As EV battery prices continue to fall; industry analysts now suggest that within five years it will be cheaper to buy an electric car than a gas or diesel-powered one.
The long term impact of this growth will be felt across many areas of industry, as demand for the cheap and sustainable vehicles grows in China, gasoline demand in the country could fall sharply. Meanwhile, the number of manufacturers in the EV market is becoming very crowded, and there is sure to be a ferocious battle over the coming years for market share. Those companies who are able to innovate quickly, and offer affordable EVs to the mass market are likely to be the big winners in the long term. This means more jobs in the EV industry in the coming years, so prepare yourself for the future!
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