“Electric cars in China will surpass the sales of cars with internal combustion engines for the first time next year.”, — write: epravda.com.ua
Electric cars in China will surpass the sales of cars with internal combustion engines for the first time next year. The Financial Times writes about it. The newspaper notes that this is a “historic moment” that will put the world’s largest automotive market years ahead of its Western competitors. According to the latest estimates by four investment banks and research groups provided by the Financial Times, China’s domestic EV market will grow by about 20% to more than 12 million cars in 2025. That’s more than double the 5.9 million sold in 2022.Advertisement: Meanwhile, sales of traditional cars in China will fall more than 10% next year to less than 11 million, representing a nearly 30 percent drop from 14.8 million in 2022. In contrast, EV sales growth in Europe and the US has slowed due to slow adoption of new technologies in the traditional auto industry, uncertainty over government subsidies and increased protectionism against Chinese imports. Although the growth rate of electric vehicle sales in China has slowed since the pandemic, forecasts suggest that Beijing’s official goal of reaching 50% electric vehicle sales by 2035 will be met 10 years early.Advertisement: Forecasts from UBS, HSBC, Morningstar and Wood Mackenzie also suggest that within the next decade factories in China, which produce tens of millions of traditional cars, will lose the domestic market. The rapid development of the Chinese electric vehicle industry poses a threat to the national manufacturers of Germany, Japan, and the United States. The share of foreign-made cars in China fell to a record 37% in 2024, down from 64% in 2020, according to Automobility, a Shanghai-based consultancy. In December, General Motors wrote off more than $5 billion in the value of its China business. Porsche’s owner company has warned of a possible write-off of up to €20 billion in its Volkswagen stake. Meanwhile, Nissan and Honda announced the merger due to “dramatic changes in the business environment.” We will remind: Chinese automakers can more than double their production capacity of electric cars abroad in order to avoid import duties and meet market demand. At such manufacturers as BYD Co. and MG SAIC Motor Corp. accounted for 7.4% of electric car registrations across Europe in November, compared to 8.2% in October. This is the lowest level since March.