The rapid growth of the electric vehicle market in China is not losing momentum. In October, the country captured an impressive 76% of the global electric vehicle market, despite trade tensions and duties imposed by Western countries.
According to the China Passenger Car Association, 14.1 million Chinese electric vehicles were sold between January and October. At the same time, 69% of them were purchased domestically. This indicates the significant role of domestic demand in the development of the electric vehicle market in China.
Although Western duties create difficulties for the export of Chinese electric vehicles, the domestic market remains the driving force. According to the International Energy Agency, nearly 60% of new electric vehicle registrations in 2023 were in China. Given that the majority of global EV sales are concentrated in just three regions – China, the EU, and the US – the Chinese market is becoming the undisputed leader.
The Biden administration has increased duties on Chinese electric vehicles to 100%. The EU has also imposed duties of up to 35% in addition to the existing fees. These barriers are aimed at slowing the rapid growth of the Chinese electric vehicle industry.
Despite the challenges posed by Western tariffs, China’s domestic policies continue to drive demand for electric vehicles. The government has doubled subsidies to 20 thousand yuan (€2600) for buyers who turn in cars with internal combustion engines. Tesla has become one of the companies benefiting from this. Its car sales in China grew by 7% in the third quarter of 2024.
While exports to Western countries are facing difficulties, sales of Chinese cars to Russia have increased significantly. According to the China Passenger Car Association, exports to Russia have increased by 109% over the past two years. At the same time, exports to the United States decreased by 23%.
Source: arenaev