How will India face the King of ELECTRIC vehicles? | China's dominance in the electric vehicles market.

What is the reason for China's dominance in the electric vehicles market?

Do you know which is the largest electric car market in the world? And the answer is China, which is the largest electric vehicle manufacturer. Now let's look at some statistics. A New York Times report said that if all countries in the world sold electric vehicles this year, then China would be the only country that would sell more electric vehicles in the year 2022.

Nearly half of the world's top electric vehicle brands are from China. If we look at some statistics, electric vehicles account for 5% of total car sales in the US. It was achieved by China only in 2018. However, China was selling more than 5% of electric vehicles in its country in 2018. Luxury car sales in India accounted for only 0.7% of total car sales in 2021-22. 

That is, today electric vehicle is the future for most countries of the world, whereas for Chinese automakers its present. Looking at these figures, some questions must be coming to your mind. One is, how is China getting everything done so fast? China dominates the electric vehicle market. It is important for us today to understand this. What steps need to be taken if India is to increase its electric vehicle adoption and sales? 

Today we will try to find out. But before that let's try to understand China's electric vehicle market. Electric vehicle sales in China are expected to double this year, i.e. by 2022, to nearly six million vehicles. This is more than the number of electric vehicles sold in the whole world. Not only this, half of the world's top 10 best-selling electric vehicle brands are from China. 

25% of all new cars purchased in China this year will be fully electric or plug-in hybrids. Currently, more than 300 Chinese companies are making electric vehicles.

If seen, China has stood on its own in this market after spending a decade on subsidized long-term investment and infrastructure and has achieved this milestone. Now let's know the answers to those questions which we did above in this article. 

That is, what is the reason for China's dominance in the electric vehicles market? Its answer is, the Chinese government, focusing on subsidies, has given about 33% of sales subsidies to automakers, suppliers, and consumers. The Chinese government changed the rules for Tesla, focusing on battery manufacturing. Infrastructure creation was given a national priority and the focus was on electric vehicle development. 

How will India face the King of ELECTRIC vehicles?

Now coming to the question, why are we behind? The answer is that there are three major apprehensions in the minds of Indian consumers regarding electric cars, which need to be addressed. The first is that the cost of electric cars is very high. Second, the choice of electric cars is very limited. 

Although electric cars are now entering the market in large numbers, there are still fewer than in China, and the third biggest reason is the lack of infrastructure. There is still very little facility to charge electric cars in India. Most people in India charge their cars at home right now. Another major reason for India's backwardness is its dependence on other countries. India is still dependent on China for electric car batteries.

China is a leader in the lithium-ion battery business. However, the Indian government wants India to become the largest center for manufacturing electric cars across the world. Along with this, big companies like Suzuki and Tata Motors have also announced to invest heavily in the manufacturing of Lithium Ion batteries. Under the electric mobility mission plan, the government has set a target of producing 60 to 70 lakh electric and hybrid vehicles by 2025.

The government expects sales of electric vehicles to increase to 30% in private cars, 70% in commercial vehicles, and 80% in two and three-wheelers by 2030. The electric vehicles market is expected to be around ₹475 billion by 2025, with India being one of the largest markets for electric vehicles in Asia, behind China and ahead of Japan. If India achieves its actual capacity of 50% electrification, every tenth electric vehicle sold globally could be manufactured in India.

This will make India a global electric vehicle powerhouse. Consumers are also gradually adopting and preferring the state to the target, as evidenced by the rise in demand. What do you have to say about this? Please comment on our site www.tradeipohub.co.in. Thanks for reading.