Electric Vehicles - China | Statista Market Forecast

In 2024, the projected revenue in China's Electric Vehicles market is expected to reach a staggering US$376.4bn.
This forecast indicates a promising future for the industry.
Furthermore, it is anticipated that the market will experience a steady annual growth rate of 2.17% from 2024 to 2029, resulting in a projected market volume of US$419.0bn by the end of that period.
The increasing demand for Electric Vehicles market will contribute to this expansion.
Looking specifically at unit sales, it is estimated that the number of Electric Vehicles market sold China will reach a significant milestone of 9.57m vehicles units by 2029.
This demonstrates the growing popularity and acceptance of Electric Vehicles market among consumers.
Moreover, the volume weighted average price of Electric Vehicles market China is predicted to amount to US$46.8k in 2024.
This figure reflects the average price at which Electric Vehicles market are expected to be sold in the market.
It is worth noting that, on an international scale, China is projected to generate the highest revenue in the Electric Vehicles market in 2024, with a staggering US$376.4bn.
This highlights China's dominant position in the global Electric Vehicles market industry.
China's electric vehicle market is booming, with government subsidies and a strong infrastructure driving rapid adoption.

CO2 emissions exert a profound influence on climate and the environment, fueling the greenhouse effect and contributing significantly to global climate change. Nearly one-fourth of these emissions worldwide can be attributed to the transportation sector. Electric vehicles (EVs) emerge as a promising solution, potentially acting as a carbon-neutral alternative when powered by renewable energy sources. This underscores their pivotal role in mitigating the impact of traditional combustion engine vehicles on the environment.

The Electric Vehicles market includes information about electric vehicles in countries where, according to our sources, a public electric vehicle charging infrastructure is already available. In this context, “public” means that people have unrestricted access to the charging infrastructure. A vehicle can be defined as electric if it is self-contained with a battery or classified as a plug-in hybrid. All key figures shown represent the sales of new cars, and their basic configuration in the respective year. The figures do not include the sale of used vehicles nor adapted equipment for the new cars sold. The prices and revenues shown are accordingly based on the basic models.

The Electric Vehicle market is divided into distinct two distinct markets, namely Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This categorization allows for a nuanced understanding of the market dynamics, considering the specific attributes and market penetration of each electric vehicle type. The emphasis on new car sales and their foundational configurations ensures clarity, while the exclusion of used vehicles and customizations maintains focus on the evolving landscape of electric vehicles.

Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Road electric vehicles
Passenger Cars

Electric vehicles that are not self-contained and cannot be classified as BEVs or PHEVs
Rail electric vehicles
Surface and underwater vessels
Electric aircraft or spacecraft
Motorcycles, scooters, mopeds, buses, vans, and trucks

The Electric Vehicles market in China has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Electric Vehicles market in China is the increasing demand for environmentally friendly transportation options. As the Chinese government has been implementing stricter regulations on emissions and promoting sustainable development, consumers are becoming more conscious of their carbon footprint. Electric vehicles offer a cleaner and more sustainable alternative to traditional gasoline-powered cars, making them a popular choice among environmentally conscious consumers.

Trends in the market: Another trend driving the growth of the Electric Vehicles market in China is the government's strong support for the industry. The Chinese government has implemented various policies and incentives to encourage the adoption of electric vehicles, such as subsidies for buyers and tax exemptions. These incentives have significantly reduced the cost of electric vehicles and made them more affordable for consumers. In addition, the development of charging infrastructure has played a crucial role in the growth of the Electric Vehicles market in China. The government has been investing heavily in the construction of charging stations and promoting the establishment of charging networks across the country. This has addressed one of the main concerns of consumers, which is the availability and convenience of charging their electric vehicles.

Local special circumstances: China's large population and rapid urbanization have also contributed to the growth of the Electric Vehicles market. As cities become more congested and air pollution becomes a major concern, electric vehicles offer a solution to these issues. The compact size and maneuverability of electric vehicles make them well-suited for urban environments, where traffic congestion is a common problem.

Underlying macroeconomic factors: Furthermore, China's strong economic growth and rising middle class have also fueled the demand for electric vehicles. As disposable incomes increase, more consumers are able to afford electric vehicles, which were previously considered a luxury item. This growing middle class has become more environmentally conscious and is willing to invest in sustainable transportation options. In conclusion, the Electric Vehicles market in China is experiencing significant growth due to customer preferences for environmentally friendly transportation options, government support and incentives, the development of charging infrastructure, local special circumstances such as population density and urbanization, and underlying macroeconomic factors such as strong economic growth and a rising middle class. As these trends continue, the Electric Vehicles market in China is expected to continue its upward trajectory 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).

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For the first time in the past decade, lithium-ion battery pack costs increased in 2022 due to the raw material and battery component soaring price inflation. However, this increase in production cost has not slowed down the global electric vehicle (EV)market. Electric vehicle sales have increased tremendously over the past decade.