EVs in China: Almost all countries from America to New Zealand are offering incentives to customers to promote the sale of electric vehicles to reduce carbon emissions, and China adopted the same policy for years. Due to which China has become the largest EV market on earth.

According to a news from Japan Times, the success story of Beijing is quite breathtaking. Electric vehicles accounted for a quarter of the vehicles sold in China last year. That’s far ahead of about one in 7 in the US and one in 8 in Europe. While it is still increasing.

Including plug-in hybrids, China’s electric vehicle sales have reached 5.67 million in 2022 itself. It accounts for more than half of the electric vehicles sold in the world. At the same time, according to BloombergNEF estimates, the share of 14.1 million new passenger EVs sold in the world this year will be about 60%.

China is not only a buyer, but is also moving fast as a manufacturer. According to the HSBC report, Chinese brands account for almost half of the electric vehicles sold worldwide.

Adequate infrastructure helps in adoption of electric vehicles. China has the largest charging network in the world. In 2022, China alone had installed 6,49,000 public chargers. Which was more than 70% of the chargers installed in the whole world that year.

After getting all possible help from the government, EV makers filled China with new models. Due to which, in the race to get ahead this year, the competition among the companies has increased regarding the price of the vehicles.

Some things were adopted to prepare the market for electric vehicles in China, which are-

Subsidy for customers- For almost ten years in China, a substantial subsidy was given to EV buyers. Although it was phased out in 2022, local government rebates of up to 10,000 yuan continue in places like Shanghai.

Tax break- 10% tax has been waived till 2025 on buying an electric car below 3,00,000 yuan. It is estimated that 835 billion yuan will be spent till 2027 on this scheme running since 2014.

Subsidy to the companies- Due to the support given directly by the government to the EV manufacturers, many people were helped to move forward. Due to which more than 500 EV brands had come in the market in 2019 itself. Which helped companies move forward and electric vehicle makers like BYD were able to move forward and became the number one best-selling brand in China, ending Volkswagen’s decades-long reign in China.

Infrastructure- Universally available, government subsidized charging stations are readily available, reducing the cost of charging. At the same time, due to the agreement with the manufacturers, the charging standards are the same. That’s why there is no need for separate plug. At the end of May, China had 6.36 million EV chargers for charging electric vehicles, the most of any country.

Fighting for petrol-diesel vehicles – Buying and keeping fuel-powered vehicles in China is now becoming a loss-making deal. Because now there is a lottery system for license plates for these vehicles in Beijing and an auction system in Shanghai. Because of which the number of these cars is being reduced on the roads. In the first five months of last year, plates for petrol-diesel cars in Shanghai sold for an average of 92,780 yuan at auction, while green license plates can be easily obtained for EVs. The number of green plates on the city roads is increasing rapidly.

Production Penalty – China introduced a dual-credit system for the auto industry in 2017, enforcing a penalty for clean car makers with good scores and fuel efficient vehicles. Due to which cars of manufacturers with negative scores can be removed from the market and to avoid punishment, manufacturers can buy credits from companies with positive scores like Tesla Inc or BYD, which is very expensive.

Government institutions bought EVs – Some local governments in China converted their institutions’ vehicles to almost 100% electric for their public transport and also encouraged local agencies to buy electric or plug-in hybrids. Because of which companies like BYD came to the fore.

Also read- Okinawa Okhi 90 EV: Okinawa Okhi 90 electric scooter launched, know from price to features

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