China is very confident about its strong EV global supply chain, including cell manufacturing, raw materials, processing, and many more
Although several countries like USA, India, and EU countries are joining hands to shatter the industrial growth of China, experts have now stated that the electric vehicle market of China is escalating every year and it’s massive and the growing market is expected to unleash some wonders in the coming years. Advisory firm Automobility told the media that a year back, around 27 percent of new cars sold in the country were electrified, which are either hybrids or complete electric cars.
In spite of the harsh lockdown imposed due to the coronavirus pandemic and various other challenges affecting the financial growth and consumer sentiment, it is still an interesting time for the Chinese automobile industry backed by the government EV incentives and schemes, and the distinctive EV supply chain. As per media reports, EV companies like Geely, Xpeng, Li Auto, NIO, and more are gaining traction. TIn the country, the company’s market share increased to 17 percent in 2022, while that of non-Chinese automakers dropped 11 percent. (Firm BYD alone sold nearly 1.8 million battery electric vehicles and plug-in hybrids in China last year — surpassing Tesla's 1.3 million worldwide.)
GlobalData on the other hand added that, if other countries join the competition league, China will still spearhead this market in this year. Therefore, industry leaders think that the US could play an important role to beat the Chinese EV market with some new schemes and strategies like it’s doing for its semiconductor sector. When compared to the American manufactured cars, the ones produced by China are far less expensive. The European, Japanese and the Korean car makers grabbed a lot of success in the US over the past few years. For instance; Toyota managed to become the biggest selling car company in the US in 2021.
Experts also highlighted that China will not be able to qualify for the US-final assembly requirements because of the newly unleashed Inflation Reduction Act's EV tax credit rules. This will help the buyers of EVs with a $7500 credit. The biggest challenges are the current geopolitical pressures and to scuffle with the established companies in a mature market. Interestingly, even if China fails to beat the US in terms of EV sales, it would play a pivotal role in the market.
This is because China is very confident about its strong EV global supply chain, including cell manufacturing, raw materials, processing, and many more. As per a report of BloombergNEF, around 90 percent of the electrolyte production, battery anode, and 75 percent of the battery cell manufacturing is done by China. Therefore, the giant firms such as Tesla and GM have been dependent on several companies in China such as CATL, for their battery requirements.
