Foreign media: China's electric vehicle sales will continue to account for half of the global total

According to foreign media reports, a total of 97 million new vehicles were delivered worldwide last year, but electric vehicles accounted for only about 2%. Although the share is small, the development is fast. Last year, the annual growth rate of electric vehicle sales in the world reached 50%. In 2018, sales of electric vehicles are expected to approach 1.6 million. According to Bloomberg New Energy Finance (BNEF), the manufacturing cost of electric vehicles in 2030 is expected to be lower than that of traditional fuel vehicles. Before 2030, electric vehicle sales will hit a record high every year.

Foreign media pointed out that thanks to a set of new government incentives and policies learned from California, China's electric vehicle sales may grow faster than anywhere else in the world. China has already occupied half of the world's electric vehicle market. BNEF expects that despite the explosive growth of the global electric vehicle market, China will still maintain this share. BNEF predicts that by 2025, electric vehicles will account for 19% of China's total passenger car sales, while Europe and the United States will have 14% and 11% respectively.

The media pointed out that China’s success is due in part to the California Zero Emissions Vehicle (ZEV) program. Although the plan is managed by the California government, the other nine states are also implementing it. According to the requirements of the ZEV project, car manufacturers must obtain new energy points through the sale of electric vehicles, or purchase from competitors. Each state will determine the base of new energy credits for each car company based on the total sales volume. Each electric vehicle gets its points according to its cruising range and energy efficiency. The integration policy is undoubtedly a boon to electric vehicle manufacturers such as Tesla, which sells new energy points to traditional car companies that have no intention or power to sell full-size electric cars, thereby gaining billions of dollars in high profits.

According to the media’s view, since the average purchasing power of Chinese car buyers is much lower than that of the United States and Europe, it is more challenging for China to complete the huge electric vehicle sales target. From next year, China will implement a new policy based on the California ZEV plan. So far, China has implemented a national new energy subsidy policy, but the subsidy is about to retreat and gradually be replaced by the new energy auto points system. Like the California ZEV, the system will award points for each zero-emission vehicle (including fuel cells and other new energy vehicles) based on cruising range and energy consumption, while allowing car companies to produce or trade these points.

Compared with the one-size-fits-all subsidy policy, the new policy can stimulate auto makers to increase their demand for points, promote the steady growth of China's electric vehicle market, and enable Chinese regulatory agencies to respond more flexibly to market changes. BNEF writes, "This is the most important part of the global electric car policy. It is shaping the electrification plan of car manufacturers."