The global automotive industry is going through a major transition, with electric and electrified vehicles gaining ground and slowly replacing traditional gas and diesel-powered cars. While individual countries and brands have their own sales records, the big picture can only be seen through global sales figures. And there is one country leading the way – China.
China has the world’s largest automotive industry, with a huge population hungry for cars. It is no surprise that the country is selling the most vehicles in the world. However, it is the electric car transition that sets China apart, with unrelenting growth making it the fastest country to adopt electric drivetrains. In the first three months of 2023, there were 2.55 million electrified vehicles sold globally, with 59% of all sales taking place in China.
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Despite no longer offering EV subsidies, China’s electric car sales grew by 25% compared to the same period a year ago, with a global increase of 26% year-on-year. China has also increased its exports of EVs, with BYD leading the export growth, selling nearly 39,000 EVs to other countries, a 14-fold increase over last year’s figures.
Electric cars are on the rise globally, with China leading the way, and electric cars representing a growing share of vehicles sold worldwide. In China, 28% of all cars sold were electric, second only to Norway with its 71% share. The rest of the world is improving as well, with 8% of all cars sold in the US being electric in Q1, and 18% in Germany. However, Japan is lagging behind, with only 3% of cars sold in the first three months of this year being electric.
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The rise of Chinese electric vehicles is not surprising, given the country’s huge market and aggressive adoption of new technology. It is a wake-up call for US and European automakers, and if they miss it, there will be no room left for them. Some argue that Chinese companies are playing an unfair game, heavily subsidized by the government to sell their cars cheaper. However, the truth is that all automakers are subsidized in one way or another, and customers ultimately want reliable and affordable electric cars, with brand loyalty taking a back seat.
As China’s electric car market continues to grow, it is crucial for US and European automakers to take note and adapt to the changing landscape. The future of the automotive industry is electric, and those who fail to recognize this fact may find themselves left behind.
