China's grip on the global EV market tightens

China's electric vehicle market impressive growth shows no signs of slowing down. It captured an impressive 76% of the global market share in October. And all that despite trade tensions and tariffs imposed by Western countries, proving that Chinese EV industry is as resilient as ever.

According to the China Passenger Car Association, a remarkable 14.1 million Chinese EVs were sold between January and October. 69% of those sales took place within the country. This data is the clearest indication yet of the significant role domestic demand plays in propelling China's EV market forward.

While Western tariffs pose challenges to Chinese EV exports, the country's internal market remains a driving force. According to the International Energy Agency, under 60% of new EV registrations in 2023 were in China. Since the vast majority of global EV sales are concentrated in just three areas - China, the EU, and the US - it makes the Chinese EV market an undisputed leader.

Under the Biden administration, the US has increased tariffs on Chinese electric cars to 100%. The EU has also imposed tariffs of up to 35% on top of already existing duties. These trade barriers were designed to slow down China's rapidly expanding EV industry. Beijing has long prioritized the EV industry as the most important component of its economic development and green transition strategies.

Even with the challenges posed by Western tariffs, China's domestic policies continue to stimulate EV adoption. The government recently doubled subsidies to RMB 20,000 ($2,900) for car buyers trading in their ICE-powered vehicles. Tesla is one of the companies benefiting from the increased subsidies. Its sales in China jumped up by 7% in the third quarter of 2024.

Interestingly, while exports to Western markets face hurdles, China's auto sales to Russia have surged. Data from the China Passenger Car Association reveals a 109% increase in exports to Russia over the past two years. Exports to the US dropped by 23% during the same time.

China's unrelenting focus on EV development, coupled with strong domestic demand and supportive government policies, makes it a dominant player in the global electric vehicle market.

Via