China's e-car boom: The world looks at Shanghai!

China's e-car boom: The world looks at Shanghai!

Electromobility is becoming increasingly important worldwide, especially in China, where the sales of electric cars have experienced rapid development in recent years. According to Westfalen-blatt.de and in view of the market development, over 100 new models and technical developments are presented at the current car show that will be the focus on progress in electromobility and in the area lay of autonomous driving. This fair is considered an important shop window in the automotive future.

In the summer of 2024, electric cars in China made up more than half of the new cars sold for the first time. This is a sign of the unbroken upward trend on the Chinese market, which was the largest car market worldwide with around 31 million vehicles sold in 2024. Chinese manufacturers, especially BYD, have managed to leave foreign competition behind and increasingly dominate the market.

market developments and challenges

The global view shows that the market for battery-electric vehicles and plug-in hybrid is growing sharply despite buying the purchase in Germany. In 2023, 13.7 million electric cars were sold worldwide, which corresponds to market growth of 35%. In China, sales rose by 37% to over 8 million vehicles, while in the USA there is an increase of 48% to almost 1.5 million electric cars, as Tageschau.de

However, German manufacturers continue to face enormous challenges because they lose market shares in China. Volkswagen plans to launch two electric cars specially developed for the Chinese market this year. These new Audi models will integrate digital communication, entertainment and driving assistance programs.

political and economic framework conditions

The political tensions between the USA and China influence international trade in electric cars. High additional tariffs from the United States on Chinese e-car imports make the US market unattractive for Chinese manufacturers. In addition, the EU Commission accuses China Commission to distort competition from state subsidies, which means that the EU has levied compensatory tariffs on electric cars from China since last year. Talks about alternatives such as minimum prices for Chinese vehicles are underway.

Despite falling grants in Europe and a limited product portfolio in the USA, increasing growth is expected, particularly in China. The competition is becoming more intensive, since new providers worldwide have reached a market share of 55% in battery -electric vehicles, while this share in China is even 85%. It is estimated that over 700 new e-car models will come onto the market worldwide by 2026. There are over 200 e-car models offered in Germany alone, which takes second place to China, according to the report by mcKinsey.com .

The quick development of electromobility in China is supported by more than 130 brands with over 400 e-car models. The dominance of the Chinese automotive industry on the global market is undeniable, while a high level of competition intensity in the electric car segment is expected in Europe, especially by Chinese manufacturers. The market conditions will be decisive in the coming years to make the trends of electromobility sustainable.