LOGIC.co.id – China continues to solidify its dominance in the global electric vehicle (EV) market, excelling in vehicle production, sales, and battery manufacturing. The country has established itself as a global leader in the EV revolution.
World’s Largest Car Manufacturer
In 2022, China produced nearly 24 million passenger cars, including both electric vehicles and fossil-fueled cars. This accounts for one-fourth of the world’s total car production, making China the largest automotive producer globally.
Sales figures also show significant growth. From just 7 million units sold in 2008, China’s passenger car sales skyrocketed to almost 24 million units by 2022, reflecting a strong and growing domestic demand.
A Leader in the Global EV Market
China has taken the lead in EV sales, scoring 7.70 out of 10 on the EV market leadership index. The country’s EV market share stands at 29 percent, supported by an impressive infrastructure of 760,000 fast-charging stations—the largest network in the world.
Government policies have played a critical role in this success. In 2023, tax incentives worth 520 billion yuan were introduced to accelerate EV adoption. China aims to ensure EVs account for 40 percent of total car sales by 2030.
Dominance in Battery Manufacturing
China’s leadership extends beyond vehicle production, as it also dominates lithium-ion battery manufacturing. The country controls 62.5 percent of global battery production capacity—nearly two-thirds of the world’s total. However, analysts predict that China’s share in the battery market may decrease slightly as other nations ramp up their production capabilities.
Global Competitors: Sweden and Norway
While China leads the EV market, it faces competition from other nations, particularly Sweden and Norway, which are also key players in the EV sector.
- Sweden boasts a 54 percent EV market share and a sales growth rate of 68.42 percent between 2021 and 2022. Incentives like five-year tax exemptions for car ownership are pushing the country toward its carbon-neutral target by 2045.
- Norway, meanwhile, has the highest EV market share globally at 88 percent. The country has set an ambitious target of ensuring all new cars are emission-free by 2025. Tax policies based on emissions and financial incentives have made EVs the top choice for Norwegian consumers.
China’s dominance in the global EV market underscores the success of its comprehensive strategies in production, sales, and infrastructure development. While competition from countries like Sweden and Norway is intensifying, China’s position as a pioneer in the transition to electric mobility remains unrivaled.