China Will Reign Supreme In Electric Car Market, Claim Experts
Elon Musk might be ruling the electric car world from America at the moment, but experts are claiming that it will eventually be China who decide where this market is going.
Although Norway is home to more adopters per drivers than anywhere on the planet, top automotive manufacturers will play out a Battle Royale in China in a bid to convert drivers over to EV’s.
China is presently the world’s biggest car market and sold more electric models in 2015 than anywhere else.
Indeed 247,000 EV’s were sold in 2015, which is four times more than were sold in 2014.
Despite these numbers, only 1% of all cars on Chinese roads are electric.
The Chinese government is trying to turn more people onto electric cars in a bid to clean up the country’s air pollution crisis.
State Subsidies Driving Electric Car Evolution
Presently, Chinese authorities are offering subsidies up to $8,500 for every car bought which is exempt from China’s traffic restrictions in their busiest cities.
One of the reasons why Chinese drivers are sceptical about electric cars is their big price tags. Combined with a restricted driving range, this makes them unappealing to the working man and woman.
Indeed, the worldwide adoption of electric cars has largely been state-subsidised. In Norway, 17% of all cars bought in 2015 were electric, but buyers were incentivised by government handouts.
Experts, though, are now saying that winning a chunk of Chinese sales has to be the prerogative of the world’s leading automotive brands.
Auto expert Flavien Neuvy said: “Given the size of the market, it would be a powerful driver.”
EY expert Jean-Francois Belorgey added: “China is perhaps the one place in the world where the automobile industry can achieve the economy of scale needed to bring down the costs.”