• Alexander Liu-Middleton

Electric car industry succeeding in China


By David McMullan

The electric car industry in China is growing at a decent rate despite a slump in the overall automotive market there. Standard car sales have slumped form 7 straight months but deliveries of new-energy passenger vehicles (fuelled by a rush before the government scales back subsidies for the zero- and low-emission automobiles by 2020) which include pure-battery, plug-in hybrids and fuel-cell cars have more than doubled to 85,000 units in January 2019

In contrast statistics show that the total for passenger car sales dropped almost 18% to 2.02 million units in January.

While the Chinese government has decided to phase out motivations to those buying new-energy cars over the next few years, it has yet to divulge the new subsidy plan for 2019 that would cut the concessions.

Currently, purchasers can receive as much as 75,000 yuan (S$15,048) from both the central and local governments for a pure-electric e5 sedan made by BYD Co., which gives a driving range of 450km per charge. This incentive saves the customer a third of the cost.

Limitations on car ownership in some 1st tier cities such as Beijing and Shanghai to help congestion and pollution are also playing a important role in improving EV sales.

The growing demand is encouraging auto manufacturers to increase manufacture and add new models. Tesla Inc. is hastening its push in to China with a strategic manufacturing presence, and the American business will compete against electric cars produced by global brands such as Volkswagen AG and BMW AG as well as dozens of local producers seeking a place in the market.


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