In China electric vehicle (EV) sales made up more than 2.5% of the passenger vehicle market in 2017 and is projected to rise to over 3% this year. China is the world’s leading automotive market selling a staggering 28 million new vehicles in 2017 or 11 million more than the U.S. market. Chinese buyers are buying five times as many EVs as U.S. consumers and this trend is growing. As U.S. is slow to adopt new technology, China has already reached a tipping point.
China’s New Energy Vehicle credit system will drive annual EV sales in China to reach 10% by 2022, 19% by 2025 and 60% by 2040. Bloomberg New Energy Finance (BNEF) released their Electric Vehicle Outlook 2018 report released recently predicts that 55% of new vehicle sales worldwide will be battery-electric vehicles or plug-in hybrids in 2040. This would mean 559 million electric vehicles on the road globally, making up about a 30% of the global passenger vehicle fleet.
China’s New Energy Vehicle credit system which is similar to California’s ZEV mandate is helping to power up the market. BNEF calls it “the single most important piece of EV policy globally.” China is moving fast to power past the diesel and gas era and into cleaner green vehicles. As a result EV sales should reach 11 million units in 2025 and more than 30 million in 2030. China will absorb nearly half the world’s new EVs by 2025.