{"id":146303,"date":"2024-08-29T11:32:45","date_gmt":"2024-08-29T10:32:45","guid":{"rendered":"http:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/fuel-for-thought-electric-vehicle-adoption-trends-china.html"},"modified":"2024-08-29T11:32:45","modified_gmt":"2024-08-29T10:32:45","slug":"fuel-for-thought-electrification-in-china-on-track-but-challenging","status":"publish","type":"post","link":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/2024\/08\/29\/fuel-for-thought-electrification-in-china-on-track-but-challenging\/","title":{"rendered":"Fuel for Thought: Electrification in China \u2014 On Track but Challenging"},"content":{"rendered":"

Listen
\nto this Fuel for Thought podcast<\/a>.<\/p>\n

Mainland China's transition to electrification reached a major
\nmilestone in July 2024 when sales of new-energy vehicles (NEVs)
\nsurpassed internal combustion engine (ICE) vehicles for the first
\ntime, according to data released by the China Passenger Car
\nAssociation (CPCA).<\/p>\n

NEVs include battery electric vehicles (BEVs), plug-in hybrid
\nvehicles (PHEVs) and range-extended electric vehicles (REEVs). In
\n2023, automakers' aggressive sales promotions and a tidal wave of
\nnew model launches helped to boost sales of NEVs in mainland China
\nafter the 2022 withdrawal of the central-government subsidy
\nprograms.<\/p>\n

It is beyond doubt that the Chinese auto market will continue to
\ntransition to electric vehicles in the next few years with
\nautomakers advancing their electrification plans. S&amp;P Global
\nMobility expects that NEV share of the Chinese passenger vehicle
\nmarket will reach 46% in 2024, compared to 36% in 2023.<\/p>\n

The acceleration in the market's shift to EVs will be helped by
\ndeclining battery prices, a wider availability of models and the
\nintense level of competition that exists in the market.<\/p>\n

With NEVs going mainstream, trends taking shape in the sector
\nhave begun to affect the broader passenger car market and influence
\nconsumer choices.<\/p>\n

EV adoption increasingly driven by plug-in hybrid
\nmodels with BEV sales slowing down<\/strong><\/h2>\n

Although purchases of BEVs, PHEVs and REEVs are all eligible for
\nthe central-government's purchase tax reduction incentive programs
\nthrough 2027, what is really accelerating the market's shift to
\nelectrification in 2024 are PHEVs and REEVs, rather than pure
\nelectric vehicles.<\/p>\n

In the first half of 2024, Chinese sales of BEVs rose by 12%
\nyear over year to 3.02 million units, by comparison, sales of
\nPHEVs, including vehicles with extended-range electric powertrain,
\nsurged by 85% year over year to 1.92 million units in the first
\nhalf of this year.<\/p>\n

These market dynamics were already taking shape in 2023. S&amp;P
\nGlobal Mobility research shows that combined sales volumes of PHEVs
\nand REEVs in the passenger vehicle market surged by 83% year over
\nyear in 2023 to 2.75 million units, while that of BEVs grew by 20%
\nto 5.2 million units.<\/p>\n

S&amp;P Global Mobility expects PHEV and REEV sales in mainland
\nChina to continue to grow in the next few years, accounting for 24%
\nof total passenger vehicle sales by 2029. Despite a slowdown in the
\nannual growth rate, BEV sales share is expected to reach 51% in
\n2029. Together, the total NEV sales share would be 75% that year,
\naccording to S&amp;P Global Mobility forecasts.<\/p>\n

\"China<\/p>\n

Growing presence of Chinese automakers poses a
\nchallenge for global companies<\/strong><\/h1>\n

Chinese brands' strong presence in the NEV market has helped
\nthem to advance their market share in the overall passenger vehicle
\nmarket. Domestic brands' market share in the Chinese retail
\npassenger NEV market increased from 83% in the first half of 2023
\nto 87% in the first half of 2024, while their global counterparts
\nhave a combined sales share of less than 15% in the first six
\nmonths of 2024.<\/p>\n

\"China<\/p>\n

Chinese OEMs' growing presence in the NEV market has led to a
\nshift in consumer preferences over brands and models. Global OEMs,
\nespecially the Japanese brands, have struggled to match their
\nChinese rivals in the speed of adapting to changing consumer demand
\nand market conditions. Toyota has already cut production at its
\nChinese JVs by 22% year over year in the first half of 2024 to cope
\nwith declining demand. Nissan and Honda, the other two major
\nJapanese automakers in mainland China, have all recorded huge
\ndeclines in Chinese sales during 2024, faced with BYD's aggressive
\nproduct offensive.<\/p>\n

In addition, the premium automakers, including the big 3 German
\nbrands, also face the challenge of commanding a price premium for
\ntheir new-generation BEVs as price competition intensifies. To keep
\nup with the speed of innovation in China and reduce development
\ncosts, VW is working with Xpeng and SAIC Motor on separate EV
\nprograms that will use the two Chinese companies' vehicle platforms
\nand software technologies. VW's upcoming new launches in mainland
\nChina will also include long-range PHEVs and REEVs developed
\njointly with SAIC.<\/p>\n

S&amp;P Global Mobility's latest projection shows Chinese
\nbrands' sales share in the country's passenger NEV market is set to
\nreach 87% in 2024, further improving from 83% in 2023. With global
\nautomakers rolling out their new-generation BEVs and PHEVs in
\nmainland China in the next few years, we expect global brands'
\nmarket share to improve from 2026 onwards to reach 25% in 2029 with
\nVW and BMW contributing strongly.<\/p>\n

Chinese tech companies tapping into consumer
\npreferences for SDVs<\/strong><\/h2>\n

Software is increasingly a point of difference in influencing
\nbuying choice in mainland China. Growing consumer interest in
\nsoftware-defined vehicles (SDVs) presents an opportunity for
\nmainland China's tech companies to tap into the electric vehicle
\nmarket.<\/p>\n

Xiaomi Corporation, a leading smart phone manufacturer, aims to
\ndeliver 100,000 EVs this year. The company's first electric model,
\nthe SU7 sedan, has received unprecedented publicity in mainland
\nChina thanks to Xiaomi's strong brand appeal, its huge consumer
\nelectronics products userbase and new smart car features it
\nintroduced to the SU7.<\/p>\n

China's telecom giant Huawei also emerged as a major player in
\nthe NEV sector, providing a range of intelligent vehicle
\ntechnologies to its OEM partners. The success of AITO, a
\nHuawei-backed NEV brand, has encouraged China's state-backed
\nautomakers including BAIC and JAC to forge partnerships with Huawei
\nto transition their product line with software-defined cars.<\/p>\n

China's export surge met with new trade
\nbarriers<\/strong><\/h2>\n

Although electrification in mainland China continues to grow,
\nthe country's status as an EV production and export hub may face
\nsome challenges.<\/p>\n

Mainland China's EV exports surged in the past two years amid
\nautomakers' efforts to expand sales in global markets. Data from
\nthe China Association of Automobile Manufacturers (CAAM) suggests
\nChina's NEV exports reached 1.2 million units in 2023, compared
\nwith less than 680,000 units in 2022.<\/p>\n

Although Tesla contributed largely to mainland China's EV export
\nsurge in recent years, growing EV shipment volumes of Chinese
\nautomakers including SAIC and BYD has fueled concerns over China's
\novercapacities and its intention to dominate the global market with
\nlow-price vehicles.<\/p>\n

The EU's provisional tariffs, which adds up to 36.3% of custom
\nduties to Chinese-built BEVs, are the latest example of rising
\nprotectionist actions taken by major economies to protect their
\nmarket from the influx of BEVs originating in China. Canada and the
\nUS have also announced strict tariffs on China-made BEVs.
\nAutomakers are looking to cope with these trade barriers by
\nshifting production of certain models to other manufacturing
\nlocations or investing in local production capacities to circumvent
\ntariffs. The high tariffs will also prompt automakers to further
\noptimize their cost structure to maintain a reasonable margin
\nlevel.<\/p>\n

However, within the automotive sector, major global automakers
\nincluding Stellantis and Volkswagen are seeking their own way to
\nkeep up with competition from Chinese rivals. Both automakers have
\ninvested in Chinese EV startups in the past year to gain access to
\nEV know-hows\u2014especially software architecture\u2014and speed up
\nnew launches. The Stellantis and Leapmotor joint venture already
\nbegan shipment of Leapmotor EVs built in mainland China to Europe
\nin July.<\/p>\n

To cope with the EU tariffs, Stellantis also kicked off assembly
\nof the Leapmotor T03 EV at its plant in Poland from
\nsemi-knocked-down kits imported from mainland China.<\/p>\n

S&amp;P Global Mobility offers detailed sales-based
\npowertrain forecasts for the United States, Canada, Brazil, United
\nKingdom, Italy, Germany, France, Spain, Netherlands, Sweden,
\nNorway, Rest of EU30, India, mainland China, and Australia.
<\/em><\/p>\n

Learn more<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Listen
\nto this Fuel for Thought podcast.Mainland China's transition to electrification reached a major
\nmilestone in July 2024 when sales of new-energy vehicles (NEVs)
\nsurpassed internal combustion engine (ICE) vehicles for the first
\ntime, according…<\/p>\n","protected":false},"author":2411,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-container-style":"default","site-container-layout":"default","site-sidebar-layout":"default","disable-article-header":"default","disable-site-header":"default","disable-site-footer":"default","disable-content-area-spacing":"default","footnotes":""},"categories":[3267],"tags":[61,122,127,129,124,128,125,132,131,133,126,130,123,66,94,88,97,56,64,65,60,3344,3351,3357,3360,3335,3340,3362,112,3353,40,75,95,3350,3352,3356,3343,3359,3339,3345,3334,3341,104,3354,33,120,3358,3349,3337,3348,105,101,98,115,30,29,41,86,3342,3361,70,69,68,72,71,26,118,108,87,3355,46,55,48,52,54,51,50,83,3338,62,58,57,3336,109,35,3346,59,63,85,79,82,96,80,27,81,114,44,42,43,45,38,39,110,117,100,111,116,3300,73,89,90,92,91,93,84,78,37,102,34,36,77,67,74,99,113,3347,119,28,121,32,47,49,53,103,31,76],"class_list":["post-146303","post","type-post","status-publish","format-standard","hentry","category-car-or-automobile","tag-airpods","tag-anime","tag-anime-characters","tag-anime-cosplay","tag-anime-edits","tag-anime-merchandise","tag-anime-movies","tag-anime-news","tag-anime-recommendations","tag-anime-reviews","tag-anime-series","tag-anime-streaming","tag-animes","tag-app-store","tag-app-store-samsung","tag-appgallery","tag-appgallery-oneplus","tag-apple","tag-apple-music","tag-apple-tv","tag-apple-watch","tag-auto-financing-guide","tag-automobile-industry-news","tag-automobile-laws-and-regulations","tag-automobile-shows-and-expos","tag-automobile-specifications","tag-automobile-technology","tag-autonomous-vehicles","tag-bbc-sport","tag-best-cars-for-long-drives","tag-best-mobile-games","tag-bixby","tag-bixby-xiaomi","tag-car-accessories","tag-car-comparison","tag-car-customization-ideas","tag-car-insurance-advice","tag-car-interior-design-ideas","tag-car-maintenance-tips","tag-car-resale-value","tag-car-reviews","tag-car-safety-features","tag-champions-league","tag-city-cars","tag-cyberpunk","tag-cyberpunk-2077","tag-driving-tips-and-tricks","tag-eco-friendly-cars","tag-electric-vehicles","tag-family-cars","tag-fantasy-football","tag-fifa","tag-football","tag-formula-1","tag-fortnite","tag-free-fire","tag-free-mobile-games","tag-freebuds-pro","tag-fuel-efficiency-tips","tag-future-of-automobiles","tag-galaxy-a52","tag-galaxy-note-20","tag-galaxy-s21","tag-galaxy-watch-4","tag-galaxy-z-fold-3","tag-game","tag-games","tag-golf","tag-harmonyos","tag-highway-cars","tag-how-to-backup-iphone","tag-how-to-factory-reset-iphone","tag-how-to-reset-iphone","tag-how-to-restore-iphone","tag-how-to-unlock-iphone","tag-how-to-unlock-iphone-5","tag-how-to-unlock-iphone-6","tag-huawei","tag-hybrid-cars","tag-ios","tag-ipad","tag-iphone","tag-latest-car-models","tag-live-soccer","tag-lol","tag-luxury-cars","tag-macbook","tag-macos","tag-mate-40-pro","tag-mi-11-lite","tag-mi-home-security-camera-basic-1080p","tag-mi-home-security-camera-basic-1080p-huawei","tag-mi-smart-band-6","tag-minecraft","tag-miui","tag-mlb-scores","tag-mobile-game-design","tag-mobile-game-development","tag-mobile-game-marketing","tag-mobile-game-monetization","tag-mobile-games","tag-mobile-gaming","tag-nba-scores","tag-nba-standings","tag-nfl","tag-nfl-scores","tag-nhl-scores","tag-off-road-vehicles","tag-one-ui","tag-oneplus","tag-oneplus-9-pro","tag-oneplus-buds-pro","tag-oneplus-nord-ce-5g","tag-oxygenos","tag-p40-pro-plus","tag-poco-x3-pro","tag-pokemon","tag-premier-league","tag-pubg","tag-pubg-mobile","tag-redmi-note-10-pro","tag-samsung","tag-samsung-pay","tag-soccer","tag-sports","tag-sports-cars","tag-steam","tag-steeam","tag-top-10-anime","tag-valorant","tag-when-do-the-iphone-7-come-out","tag-when-does-the-iphone-7-come-out","tag-when-is-the-iphone-7-coming-out","tag-world-cup","tag-xbox-series-x","tag-xiaomi"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/146303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/users\/2411"}],"replies":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/comments?post=146303"}],"version-history":[{"count":1,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/146303\/revisions"}],"predecessor-version":[{"id":147093,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/146303\/revisions\/147093"}],"wp:attachment":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/media?parent=146303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/categories?post=146303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/tags?post=146303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}