The Swift Development of Electric Vehicles

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China Will Take the Lead in Electric Vehicle Area

Electric vehicle has emerged in the auto industry these years as it is a typical case which takes advantages of new energy. UBS’s latest global auto survey predicts that “one in five cars sold by 2025 will be electric, and estimates will only grow higher overtime”. The rise of electric vehicle could attribute to the emission control and gas prohibition to release the pressure environment. Moreover, Tesla’s success has also influenced other automakers to improve their technologies in electric vehicle area.

China is considered as the biggest auto market with huge potential in electric vehicle area. Chinese government emphasizes on the new energy development and ban conventional gasoline and diesel-powered cars, and the government promulgates policy to support the growth of electric vehicle area. According to statistics, “China made more than half of EV purchases in the third quarter in 2017”.

What’s more, according to World Energy Outlook 2017 from International Energy Agency(IEA), “China is forecast to capture more than 40 percent of the world EV market in 2040”, which means that China will take the lead in EV market in the future. A lot of experts have estimated that sales of global electric vehicle market will exceed 60 million per year after 2040. Undoubtedly, automakers in China will try their best to meet the requirement of EV sales. For example, Volvo Cars stated that it would not produce fossil fuel-powered vehicles by 2020; and Great Wall Motors expressed that it planned to cooperate with Germany’s BMW produce EVs.

In addition to Chinese automakers, the auto industry giants around the world hold an optimistic view on the prospects of the Chinese market, they would like to invest in China and find proper cooperation opportunities with Chinese auto enterprises.

William C. Ford Jr., executive chairman of Ford, said “China will be the best market to develop and sell electric vehicles.” Thus there’s no surprise that Ford would like to set up joint venture with Zotye Auto to produce and sell electric vehicles in China.

Another powerful auto enterprise, BYD, which is China’s largest electric vehicle maker, paid attention to the potential value of Chinese market and carried out a nearly $1 billion private fund to finance monorail systems in 20 Chinese cities, so that you could see numerous BYD electric buses in the street.

Volkswagen had recently announced that “it planned to bring 25 models of electric cars to the Chinese market between 2020 and 2025. And it will invest almost $12 billion in the effort with its joint venture partners”. It’s just a start that the industry giants expand their business in the Chinese EV market. They hope to witness the prosperity of this market, as well as their ample profits.

Not only the Chinese government and automakers focus on the electric vehicles, but also the strong enterprises abroad explore this market actively. China is predicted to be a bellwether in electrical vehicle area, thus more business opportunities could be found. Enterprises that catch the chances to broaden business may result in success as long as they make a proper plan and perform well in the market.

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