"Before most people could realize the extent of what was happening, China
became a world leader in making and buying EVs. And the momentum hasn’t slowed:
In just the past two years, the number of EVs sold annually in the country grew
from 1.3 million to a whopping 6.8 million, making 2022 the eighth consecutive
year in which China was the world’s largest market for EVs. For comparison, the
US only sold about 800,000 EVs in 2022.
The industry is growing at a speed that has surprised even the most experienced
observers: “The forecasts are always too low,” says Tu Le, managing director of
Sino Auto Insights, a business consulting firm that specializes in
transportation. This dominance in the EV sector has not only given China’s auto
industry sustained growth during the pandemic but boosted China in its quest to
become one of the world’s leaders in climate policy.
How exactly did China manage to pull this off? Several experts tell MIT
that the government has long played an important
role—propping up both the supply of EVs and the demand for them. As a result of
generous government subsidies, tax breaks, procurement contracts, and other
policy incentives, a slew of homegrown EV brands have emerged and continued to
optimize new technologies so they can meet the real-life needs of Chinese
consumers. This in turn has cultivated a large group of young car buyers.
But the story of how the sector got here is about more than just Chinese state
policy; it also includes Tesla, Chinese battery tech researchers, and consumers
across the rest of Asia."
Via Future Crunch
*** Xanni ***
Chief Scientist, Xanadu
Partner, Glass Wings
Manager, Serious Cybernetics