Market for EVs growing rapidly in China reports suggest

Tue 20 January 2015 View all news

Electric vehicles are expected to account for at least 11% of all the new vehicles sold in China in the next decade on the back of growing environmental awareness and stricter regulations, a new survey has found. Meanwhile, Tesla are reported to see great market potential in the country. 

The survey, published by KPMG, showed that a majority of the Chinese respondents (68%) expect EV sales of hybrid, battery and fuel cell units-to account for between 11% to 15% of China's markets in the next 10 years.

The survey was based on responses from 200 executives from automobile companies, suppliers, dealers, financial services providers, rental companies and mobility solutions providers in 31 countries, including 25 from China.

Respondents from China ranked fuel efficiency as the top criterion for buying a car, with about 76% indicating it would be the main priority, far higher than the global average of 67%.

Meanwhile, a senior Tesla executive says that his company sees China as having great potential for electric vehicles thanks to the country's favorable policies and promising market prospects. 

Jerome Guillen, Tesla's vice president of Worldwide Sales and Service, told Xinhua at the 2015 Detroit Auto Show: "China is a very important automotive market overall, but also for electric cars," .

In 2014, Tesla began rapidly ramping up its Chinese supercharger stations.

China's Ministry of Finance said in January that it will create a favorable environment to foster quicker growth in the new-energy vehicle sector through fiscal policy. Zeng Xiao'an, Director of the ministry's economic construction department said that existing polices have already created a fertile environment for the sector to expand.

He added that a new policy package was on the cards, which would support the growth of new energy vehicles. Future policies will include more charging stations and supporting infrastructure, as wel as plans to boost innovation, he said.

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