China is on its way to Becoming a Leading Car Exporter
Background
EVs are becoming popular in the entire
world, mainly due to the emission of no to less pollution and no use of non-renewable
energy resources. The China is world’s second-largest economy which is growing
rapidly. A halt in Chinese economic development was seen due to the
restrictions of COVID-19. However, their economy is again on its way to
stability and growth. This development also includes a big growth in the
automobile industry. In the past, China was a nation where foreign automaker
brands enjoyed a large share of the auto industry. But, with the increasing
popularity of electric vehicles, this is about to change.
Latest Developments
According to experts, China is on its
way to becoming the biggest vehicle exporter in the world. Currently, the first
place belongs to Japan which managed to export about 3.2 million vehicles in the
first 11 months of 2022. These numbers are almost the same as the past year.
According to experts, Japan is about to face a loss in export numbers of these
vehicles, each coming year. As per China is concerned, it is expected to enjoy
a significant increase in exports from the automobile industry.
Increasing Demand for EVs in China
China is a country where foreign
automakers are still enjoying the advantage as they are holding about 50.8
percent of total sales of conventional vehicles. However, The Chinese EVs are far
from par as they have successfully gained 84.7 percent of the share in the same
amount of time.
Increase in Car Exports
As the demand for EVs is rising rapidly,
millions of Chinese drivers are shifting towards electric vehicles, leaving
their petrol ones. These Second-hand vehicles are planned to be exported to
other developing nations. The Chinese government is also taking initiatives to
ease the selling and exporting of these vehicles in different regions.
According to researchers, China is estimated to be exporting 5.5 million units
by 2030, of these 5.5 million vehicles exported, 2.5 million would be Electric.
Reasons Behind this Success
China, thanks to its economic development and planning, has a very strong supply chain that is helping carmakers to keep up the supply-in-demand. Moreover, the Chinese are also developing powerful and reliable EV batteries which makes it easier to lower the overall cost of electric vehicles. The Chinese are also planning for a long-term expansion of EV markets in other parts of the world. The people of China aim to spread their markets in Europe and North America as well, by installing some of the most sophisticated technologies and features in their EVs.