USD 252.67 Billion
Report ID:
SQMIC25C2155 |
Region:
Country |
Published Date: November, 2024
Pages:
186
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0
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China Electric Vehicle Market size was valued at USD 252.67 Billion in 2023 and is poised to grow from USD 299.16 Billion in 2024 to USD 1180.12 Billion by 2032, growing at a CAGR of 18.4% during the forecast period (2025-2032).
The Chinese government has substantially increased the production and sale of electric vehicles within the country. Consequently, the nation has witnessed a huge rise in these cars within its automotive sector, and this trend will continue during the forecast period. In terms of market share of electric vehicles, the nation is at the top. This growth is contributed by as many as 500 EV production enterprises that exist in the world's largest vehicle market. Due to increasing environmental concerns and an alarming rise of exhaust emissions, the nation is focusing on sustainable transportation. China has vowed to reduce vehicle emissions and launched several initiatives to generate more revenue from the sales of electric cars. To boost the growth of the China electric vehicle market, the country is going to reduce its imported oil. China takes the biggest share in the global sales of battery electric vehicles because it has a significant number of major carmakers operating within its borders. While the OEMs are indeed working on improving the battery-electric cars, they are also striving for massive system improvements across the vehicle, such as in powertrains. This expansion will continue to drive market growth during the period under forecast. For instance, in May 2022, Nidec Corporation reported that it will establish a flagship plant in Pinghu, Zhejiang Province, China, to manufacture E-Axle traction motor technology. The company stated that this new factory will be the company's fifth production facility for traction motors.
Market snapshot - 2025-2032
Global Market Size
USD 252.67 Billion
Largest Segment
Passenger Car
Fastest Growth
Commercial Vehicle
Growth Rate
18.4% CAGR
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China Electric Vehicle Market is segmented by Component, Propulsion Type, Drive Type, Range, Vehicle Type and region. Based on Component, the market is segmented into Battery Pack & High Voltage Component, Motor, Brake, and Wheel & Suspension. Based on Propulsion Type, the market is segmented into Battery Electric Vehicle, Hybrid Electric Vehicle. Based on Drive Type, the market is segmented into All Wheel Drive, Front Wheel Drive, and Rear Wheel Drive. Based on Range, the market is segmented into Up to 150 Miles, 151-300 Miles, above 300 Miles. Based on Vehicle Type, the market is segmented into Passenger Car, Commercial Vehicle.
The passenger car segment is marked by strong demand growth, and this trend is predicted to be sustained in the near term because this is where the market is led. The world population is increasing, which increases electric vehicle (EV) demand, and this is the main driver behind this growth. EVs are gaining more popularity as people seek greener transport options and become more cognizant of environmental issues. Strong pollution regulations by the government are predicted to be the largest sales driver for electric vehicles. For instance, Tesla Inc announced that it would reduce the prices of electric vehicle batteries and increase production. The most affordable variant of Tesla was available to a wider audience at 36,500 USD in 2021.
Though there are more buyers for passenger cars, the commercial vehicles segment is expected to grow the fastest. There are many factors such as increased urbanization, growth of logistics and e-commerce firms, and other infrastructure developments in regions that prove the rapid growth. Companies continue to spend increasing amounts of money on upgrading fleets to boost productivity and cut costs, which often creates an element of the need for the most modern commercial vehicles. What is more, the search for less polluting solutions is pushing producers into developing electric commercial vehicles that can quite easily be in line with environmental objectives. This is expected to be a very innovative market, hence setting up for future years of huge growth.
Since front-wheel drive remains at the top of the automobile industry, FWD systems retain their position due to the widespread use of front-wheel drive in passenger cars. Other advantages of the FWD system include better grip in bad weather conditions, more weight, and greater fuel economy. Since most sedans and small cars go out with front-wheel drive, makers who wish to attract mainstream drivers have grown accustomed to this layout. Compared to the other drive types, the layout offers more interior space and a lower production cost. FWD is still the favorite of car users, so this market will still stay at the top of the selection list, given that consumer preference is moving into efficiency and practicality.
The All-Wheel Drive (AWD) is the automobile market segment that grows the fastest because the customers keep demanding safer and better vehicles. AWD systems that distribute the power to all four wheels have delivered improved traction, stability over a variety of terrains, and in cases of inclement weather. This has been responsive to the needs of the drivers who nowadays demand variability in their vehicles. It is most tempting for regions that are regularly susceptible to snow, rain, or off-road conditions. Moreover, technological advancements have made AWD systems more efficient, yet accessible, thereby making it even more alluring. SUV and crossover models will record high growth over the next few years, largely because of a very unprecedented surge in the popularity of these vehicles. Most of them are sold with all-wheel drives as standard.
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East China dominates the country's electric vehicle market, with cities such as Shanghai and Beijing falling under that category. However, East China enjoys other forms of heavy infrastructure, in terms of large networks of charging stations and government subsidies that promote the use of EVs. East China's booming economy, densely populated areas, and progressive environmental regulations have greatly surged the demand for electric cars. This is how not only major established manufacturers such as NIO and Tesla have made huge investments locally, but this region has also taken over the leadership in electric car sales. Efforts toward the reduction of air pollution and a switch to greener modes of transport have therefore further sealed the position of East China in the country's electric car market hub.
The electric vehicle market is growing at the fastest pace in Southern China due to growing urbanization and the government's favorable schemes for green transportation. Rapid growth is being witnessed in the infrastructure of the urban cities such as Chengdu and Chongqing for the charging of electric vehicles, besides incentives are also being provided to people to shift to electric vehicles. Interestingly, the increasing middle class within the region has grown to become more interested in economical yet environmentally friendly means of transport. This is mainly one of the reasons why electric vehicles sales increase. The local governments have also been enacting laws that will help facilitate the development of the supply chain for electric vehicles such as battery production and recycling. The electric vehicles market is predicted to boom in Southwest China in the next coming years as environmental considerations and technological advancement begin to gain further acceptance.
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Governmental Incentives for Electric Vehicles
Growing Concerns for the Environment
Unavailability of Infrastructure for Charging
Exorbitant Battery Prices
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A few firms dominate the China electric vehicle market include BAIC Motors, SAIC Motors, Honda Motor Company, Geely Motors, and BYD Co. BYD currently dominates the China electric vehicle market as it sells more of its electric buses and passenger cars due to growing local and global demands. SAIC will rank second in revenue after Geely Motors and BAIC Motors. A lot of money is spent on R&D to make cutting-edge goods and technology.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, advances in battery technology, environmental sensitivities and government incentives may make the China electric vehicle market to grow substantially. However, one of the biggest challenges so far has been battery-related costs and the lack of necessary charging infrastructure; in either case, government and business largesse in building a thriving EV ecosystem point to better times ahead for the sector. China has become the world's undisputed leader in electric mobility due to new innovative companies emerging and innovation in car technologies. The China electric vehicle market is going to play a very crucial role in determining the course of a cleaner and more sustainable future because of customers increasingly opting for greener alternatives for transportation.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 252.67 Billion |
Market size value in 2032 | USD 1180.12 Billion |
Growth Rate | 18.4% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the China Electric Vehicle Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the China Electric Vehicle Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the China Electric Vehicle Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the China Electric Vehicle Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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