With 1% of electric vehicles circulating, China is the first electric vehicles market in the world. Indeed, the government wants more citizens to drive EV ( Electric Vehicles) in order to reduce gas emissions due to the crowded cities and traffics.
Why invest in Electrics Vehicles ?
Regarding Chinese population and also the “airpocalypse” that they are suffering from especially in the large towns such as Shanghai, Beijing, it is basically a growing market and big industries already know it. China produces and sold over 300000 units of EV, which represent an increase of 300% each year. The country has the potentialities to build a strong industry of EV and then reduce its dependency on imported oil. The EV are fully equipped, respecting the environment ( no more exhaust pipe anymore, curtains for isolations…).
Policies support strongly the industry
Authorities have completely understood how it was important for the country to adopt these types vehicles as managing pollution effects on the environment. Firstly, everything is put in place in order to support and create the competitiveness of the EV. How does it put in place ?
- Restrictions on cars during rush hours
- Electric owners benefits of advantages (license plate gave earlier etc)
- Consumption tax
- Reforms “ 10 cities,10 thousands of EV”
Moreover, automakers call for mass production and cut down the costs in order to democratize the EV in the country. 5 millions of Electric Vehicles are expected for 2020 by the government. Actually, mass production would enable to decrease the price of the materials like batteries, for instance, then people would be more attracted because for now the batteries’ costs still not be reasonable for some.
Indeed, all these policies considerably have boosted the electric vehicle market. One of the big challenges of this industry is to face to the consumers who are not yet convinced by this car. Also, in the large towns people often reside in buildings where they do not have any means to charge their car.