What China’s Electric Vehicle Market Can Teach American and European Automakers
In 2020, battery electric vehicle sales in both China and Europe accounted for about 5% of personal vehicles sold, while US sales were at 2%. By 2024, the market share for battery electric vehicles in China rose to about 27%, Europe plateaued at 13%, and the United States continues to lag at only 8%. The reasons behind this disparity in electric vehicle sales are well understood. Chinese industrial policies provide support for emerging automakers and offer direct incentives for consumers to purchase electric vehicles. There are also indirect incentives, including massive expansion of public charging infrastructure and relatively low-cost home charging compared to the EU and United States. Lessons Learned from the Chinese Market: