5.22.18





Author: Lanie Meyers


As US residents attempting to bolster Electric Vehicle (EV) business here at Electra Vehicles, it is easy to solely look at the challenges presented by American markets. However, as the need for EVs expands globally, it is important to keep watch of the global front and learn from other countries’ successes. It is expected that by 2040 EVs will makeup half of all new car sales worldwide, and that China will account for the majority of these sales. China is the leader in electric vehicle sales and has seen a 136% increase in new purchases over the last year, with more than 52,000 more EVs sold in that time than in the US.



This rise in sales is largely thanks to the policies put in place in multiple major Chinese cities to reduce gasoline-powered car sales and incentivise EVs. Six cities have implemented license plate auctions for traditional internal-combustion engine vehicles that create an expensive market for licensing new gasoline-powered cars. The auction process often takes years, in which time fed-up Chinese drivers often choose to purchase an EV that is given a free license plate and may be subsidised by the government. This system is imperfect because it doesn’t solve the road congestion issues many Chinese cities face, but the preferential treatment EVs are given both at the licensing stage and once they are on the road - preferential parking, access to drive in bus lanes, etc. - makes switching to electric vehicles more enticing and lessens the carbon impact of transportation.



To read more of the specifics of the Chinese EV market over the past year, visit https://www.bloomberg.com/news/articles/2018-05-21/gas-guzzlers-set-to-fade-as-china-sparks-surge-for-electric-cars and https://www.bloomberg.com/news/articles/2018-05-22/these-six-chinese-cities-dominate-global-electric-vehicle-sales for more information.