China’s share of global passenger EV sales has gone from 26% in 2015, to 48% in 2021, to 56% in first half of 2022. Bloomberg’s Colin McKerracher says he expects a big surge in the final months of this year that could push the total EV market share in China to 60%. In trucks, buses, and two-wheeled vehicles, China is even further ahead.1) The average range of electric cars is rising steadily.
4) Plug-in hybrids are taking off in the larger vehicle segments. While plug-in hybrid sales are slowing in Europe and never really took off in North America, they’re finding real traction in the larger vehicle segments in China. PHEVs hit 15% of sales in the large car segment and nearly 25% in the large SUV segment from January to August. Part of this is because high battery prices are making it difficult to fully electrify larger, heavier vehicles while keeping them cost competitive.
5) EV sales are spreading beyond the biggest cities. Places like Shanghai and Beijing have had high EV adoption rates for several years now, due in part to city level policies that restrict the number of new license plates issued. EVs were exempt from some of these restrictions, making them a popular choice in China’s megacities. These cities also have clusters of local automakers and component suppliers, good charging infrastructure, and other incentives helping drive EV adoption.
I’m excited to see what new EVs come to market in the next few years. I think they’ll be the talk of the auto industry