Battery Electric Vehicles - China

China

Highlights

In 2024, the revenue in the Battery Electric Vehicles market is forecasted to reach a staggering US$210.8bn.
This market segment is expected to demonstrate a steady annual growth rate (CAGR 2024-2029) of 7.02%, resulting in a projected market volume of US$295.9bn by 2029.
By that year, unit sales in the Battery Electric Vehicles market are anticipated to reach a significant number of 7.59m vehicles.
Furthermore, it is estimated that the volume weighted average price of Battery Electric Vehicles market in 2024 will amount to US$39.1k.
Notably, when considering the international perspective, it is evident that China will generate the most revenue in the Battery Electric Vehicles market, with a projected revenue of US$210.8bn in 2024.
China is leading the global market for Battery Electric Vehicles with its strong government support and increasing consumer demand.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureMethodology

China has emerged as a global leader in the Battery Electric Vehicles (BEV) market, with a rapidly growing demand for electric vehicles. This trend can be attributed to various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Chinese consumers are increasingly prioritizing environmentally friendly transportation options, leading to a surge in demand for electric vehicles. The government's push for sustainable development and the growing awareness of climate change have influenced customer preferences towards cleaner and greener modes of transportation. Additionally, the availability of government subsidies and incentives for purchasing electric vehicles has further incentivized consumers to choose BEVs over traditional combustion engine vehicles.

Trends in the market: The BEV market in China has witnessed significant growth due to several market trends. Firstly, there has been a rapid expansion of charging infrastructure across the country, making it more convenient for consumers to own and operate electric vehicles. This has alleviated concerns about range anxiety and increased consumer confidence in the viability of BEVs. Secondly, advancements in battery technology have led to improved vehicle performance, longer driving ranges, and reduced charging times, making electric vehicles a more attractive option for consumers. Lastly, the increasing number of domestic and international automakers entering the Chinese market with a wide range of electric vehicle models has significantly expanded consumer choice and competition in the market.

Local special circumstances: China's unique market dynamics and government policies have played a crucial role in the development of the BEV market. The Chinese government has implemented strict emission regulations and targets, which have forced automakers to invest heavily in electric vehicle production to comply with these regulations. Additionally, the government's financial support and subsidies for electric vehicle manufacturers and buyers have created a favorable business environment for the growth of the BEV market. Furthermore, China's large population and urbanization have created a high demand for transportation, making the adoption of electric vehicles a viable solution to reduce pollution and congestion in cities.

Underlying macroeconomic factors: China's strong economic growth and rising middle class have contributed to the increasing demand for electric vehicles. As disposable incomes rise, more consumers are able to afford electric vehicles, which were previously considered a luxury. Moreover, the Chinese government's focus on developing a domestic electric vehicle industry has led to the creation of jobs and investment opportunities, further driving the growth of the BEV market. In conclusion, the Battery Electric Vehicles market in China is experiencing significant growth due to customer preferences for environmentally friendly transportation, market trends such as charging infrastructure expansion and advancements in battery technology, local special circumstances including government policies and market dynamics, and underlying macroeconomic factors such as economic growth and rising middle class. As China continues to prioritize sustainable development and invest in the electric vehicle industry, the BEV market is expected to further expand in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).