China’s Government and Car Manufacturers Look to Compete in the Electric Vehicle Market
Industry observers expect China to rapidly move to the forefront of the automotive industry. China already buys more cars and electric vehicles (EVs) than any other country, which analysts expect will set China up to be major competition for American and European manufacturers as electric vehicles become standard.
Though Chinese EVs aren’t widely available, the Chinese government and numerous Chinese automotive billionaires are preparing to put their weight beyond a global push. Sales of EVs doubled in 2017, and China made up more than half of the 1 million vehicles sold. The Chinese government has set a goal of 7 million vehicles by 2025 with corporations jostling to even compete with luxury EV manufacturers like Tesla.
China’s government is handing down subsidies and tax rebates for purchasing their vehicles while keeping the tax on imports steady at 25%. Foreign carmakers are experimenting in Chinese markets and many hope to see tariffs lowered soon.
It remains to be seen if Chinese investments will pay off, though the relative nascence of the EV market gives Chinese manufacturers a better shot at significant competition.
Follow us on social media for the latest updates in B2B!