Published By : 20 Nov 2015 | Published By : QYRESEARCH
Sales of electric cars (EV) continue to grow rapidly in China as the China automotive market display plenty of innovations in their newly manufactured electric vehicles. Majority of the growth in the sales of electric cars in China is a result of myriad incentives that are offered across the country, more than the organic demand that is driven by consumer interest. The China automotive industry, along with the support of the government, is planning to manufacture and sell around 5 million new EV’s by 2020. In 2015 so far, i.e. in the first nine months, the sales of plug-in vehicles have risen to 136,733 units, which is double the units sold in 2014. This is a clear picture that the sale of vehicles is growing and the automotive industry in China is booming.
According to Yale Zhang, the managing director of Shanghai-based consultancy Automotive Foresight, sales of EV depend moreover on the government support and their policy. Beijing Municipality is supposedly a perfect example. The China government began exempting electric vehicles in June from rush-hour restrictions by keeping all vehicles off-road for one day in every week. The exemption coincides with the explosion of sales at Li’s BAIC dealership. For most of the auto buyers, electric cars are their second buy. EV’s are used by most of the buyers as a second car to drive to work. Yale stated that EV’s can be used on daily basis in Beijing, not just to get to work.
Tax exemptions on purchase and other efforts taken by the government didn’t seem to be effective until the additional move was made to exempt electric vehicles from rush-hour restrictions. It is a wait-and-watch situation to see whether sale trends will change in China for the EV’s. Will sales of EV’s increase as soon as incentives hit the point of weakening returns? Will have to wait to see what happens!