“I drive an EV because I am poor”. Drivers like Lu Yunfeng, a private hire driver in Guangzhou, say EVs are a practical solution to rising fuel costs and environmental concerns, but for him In China, electric vehicles (EVs) aren’t just a green choice, they’re often the most affordable one.
From Bicycles to EVs
Once a country of bicycles, China is now the world’s top EV market. With more than 18 million residents in Guangzhou alone, the noise of traffic has shifted from combustion engines to the gentle hum of electric motors.
Government Strategy & Investment
China’s push into EVs began in the early 2000s, with major investment ramping up in the 2010s. The government spent an estimated $231 billion by the end of 2023 to boost the industry, supporting everything from manufacturers and battery suppliers to consumers.
Key decisions, like the government’s push to focus on electrics over petrol cars, helped shift the industry. Domestic brands struggled to compete in traditional car manufacturing, but EVs allowed China to leapfrog past global rivals.
Building the Ecosystem
- BYD surpassed Tesla as the top-selling EV brand in 2024.
- CATL, founded in 2011, now supplies a third of the world’s EV batteries.
- China has the largest public EV charging network, especially concentrated in urban areas with chargers that can charge from 0% to 80% in around 10 minutes.
- Battery-swapping stations from brands like Nio offer fast, affordable refueling alternatives.
State Support & Innovation
China’s centralised planning allows it to sustain long-term support for EVs, through subsidies, tax breaks, and free licence plates for EV buyers. This has helped develop a fiercely competitive market, including young companies like XPeng.
Brian Gu, XPeng’s president, says:
“China has created the most competitive EV landscape without favouritism.”
XPeng’s Mona Max, for example, offers advanced features like self-driving, lie-flat front seats and state of the art entertainment systems, all for around $20,000 and these features are becoming the norm for Chinese consumers buying an EV.
Global Impact & Concerns
Western nations like the US, Canada, and EU have responded to China’s success with import taxes, citing unfair practices. Still, the UK remains open, with Chinese EVs like BYD’s Dolphin Surf and XPeng’s G6 entering the market at competitive prices.
As several Western countries aim to ban petrol cars by 2030, China’s head start in EV innovation, production, and infrastructure could position it as the dominant supplier in a global transition.
Source: Read the full BBC article
