2024 was a banner year for electric vehicles (EVs) in China. Over 6.5 million traditional vehicles were scrapped and replaced, and the domestic market penetration rate for new EV cars exceeded 50% for seven consecutive months starting in June. Annual domestic EV retail sales reached a remarkable 11 million units, a testament to the rapid acceleration of China’s EV revolution. This surge in EV adoption is not merely a consumer trend but also a catalyst for the profound societal changes China is experiencing.

According to a survey published by OCC strategy, 97% of surveyed Chinese consumers consider EV their next car purchase. Furthermore, the government has actively encouraged this shift through policies like the “Plan to Promote the Large-Scale Renewal of Equipment and the Trade-in of Old Consumer Goods for New Ones.” This initiative aims to accelerate the replacement of older vehicles with newer, more efficient models, including EVs.

Many regions have implemented policies that offer subsidies for electric vehicles through trade-in programs to encourage EV adoption. This combined effort, involving government incentives, industry support, and consumer demand, has propelled China’s EV market to unprecedented heights.

The plan forecasts a doubling of scrapped vehicle recycling by 2027 compared to 2023 and a 45% increase in used car transactions. This will promote a circular economy and mitigate the intensifying competition among domestic EV brands.

The explosive growth of the EV market over the past decade has been astonishing. In 2014, EV sales represented a minuscule 0.32% of the market; by 2024, they had skyrocketed to over 50%.

Year	Total EV Unit Sales	EV Sales Ratio (%)	Total EVs in Use	Total EVs as % of All Vehicles
2014	6K	0.32%	12K	0.13%
2024	11M	50%-60%	25M	7%
2030 (Predicted)	35M	80%	100M	30%

Charging infrastructure

China’s development of its charging infrastructure, driven by a strategic vision of “overtaking on a curve” and potentially breaking free from Western car technological dominance, has proven highly effective. The 2015-2020 “Electric Vehicle Charging Infrastructure Development Guidelines, launched in 2015, laid the groundwork for this success, demonstrating the critical role of early planning and strategic investment in charging infrastructure for widespread EV adoption.

From January to September 2024, the charging infrastructure expanded significantly, with a 16.6% year-on-year increase, adding 2.837 million units. While public charging pile growth slowed slightly, with a 9.3% year-on-year increase of 603,000 units, the private charging sector saw robust growth of 26.4%, adding 2.234 million units.

By September 2024, China boasted an impressive 11.433 million charging stations nationwide, representing a substantial 49.6% year-on-year increase.

Environmental Impact

The environmental benefits of this rapid EV adoption are significant. Chinese reports from the National Bureau of Statistics of China indicate that the country’s new energy vehicles reduced approximately 50 million tons of global carbon emissions in 2023. This aligns with research from the China Automotive Technology and Research Center (CATARC), which estimates that EVs in China can reduce carbon emissions by around 37.8% over their lifetime compared to traditional internal combustion engine vehicles.

Bloomberg estimated that the aggregate reduction in CO2 emissions from China’s EV shift could be at least 1 billion tons during 2023-40, equivalent to Japan’s total 2020 emissions. This trend underscores the substantial carbon reduction potential of widespread EV adoption.

Domestic Brands Outpacing Traditional Automaker

November 2024 EV sales data underscore a significant shift in the Chinese automotive market, with domestic brands gaining ground. The BYD Seagull emerged as the top seller, surpassing Tesla. Notably, BYD Seagull sales surged 38% year over year, while Tesla experienced a 10% decline. This dominance is further solidified by BYD’s strong showing in the top five best-selling car models, with three positions secured by this Chinese automaker.

This shift reflects a changing consumer mindset in China, which favors domestic brands and poses a significant challenge to traditional automakers from Europe, Japan, and the United States.

Global Export

While domestic competition heats up, Chinese EV brands are simultaneously making waves on the global stage.

BYD’s international journey is a prime example of this trend, offering a glimpse into the broader ambitions of Chinese automakers.

In 2009, though BYD was destined to become a renowned EV brand in China, it was virtually unknown amidst a surge of over 1,000 EV manufacturers that emerged following the Chinese government’s “Ten Cities, Thousand EV Vehicles for Each” initiative. BYD launched the F3 DM plug-in hybrid, which garnered little attention then. However, this marked the beginning of their journey, anticipating the monumental energy transition China was poised to undergo in 2014.

2014 proved pivotal as the Chinese government began prioritizing subsidies for personal EVs over those for government vehicles or infrastructure projects.

In 2023, BYD models such as the Seagull and Atto 3 caused a “lithium iron phosphate storm” in the European market. Particularly in Germany and France, these models quickly attracted many consumers with their 15% lower cost than the Tesla Model 3 and higher intelligent configuration.

Data shows that BYD’s sales in Europe grew by over 50% year over year in 2023, with the Seal model alone selling 30,000 units. This year, BYD also beat Tesla in global EV production.

A decade ago, Tesla’s groundbreaking decision to open-source its electric vehicle patents spurred a wave of new domestic automakers and prompted traditional automakers to accelerate their transition to electric vehicles. However, in retrospect, the pace of change among these established players appears slower than anticipated.

Other Chinese companies, such as Xiaomi, which makes smartphones, have begun releasing EVs. The convergence of mobile technology and manufacturing toward EVs signifies that cars are no longer simply heavy machinery but integrated symbols of intelligent living.

Can Countries Resist? Chinese Cars Are Coming

Japan, a country historically known for its relatively protectionist stance in the automotive market and reluctance to open its automotive market to foreign companies, has opened its doors to Chinese EV makers. This shift is evident in the sight of Japanese consumers watching Nagasawa Masami, a prominent Japanese actress, endorse BYD in a commercial, saying”ありかも” (alluding “it might be good, why not give it a try”) in front of a BYD car, encouraging people in Japan to try a car from a country once associated with low-end manufacturing.

This Post was submitted by Climate Scorecard China Country Manager Vincent Mau.

Learn More Resources

1. Staff reporter. (2024, February 28). China’s Electric Vehicle Market Soars in 2024. People’s Daily Online. http://finance.people.com.cn/n1/2024/0228/c1004-40185301.html

2. China EV Car Usage Report (2024, December). Retrieved from https://www.autohome.com.cn/news/202412/1302716.html

3. China Electric Vehicle Charging Infrastructure Alliance. (n.d.). Nationwide cumulative total of 11.433 million units! Operation status of electric vehicle charging and swapping infrastructure in China in September 2024. Retrieved September 26, 2023, from https://mchd.in-en.com/html/chd-2447788.shtml

4. International Council on Clean Transportation [ICCT] Title: Driving Green Future: China’s Electric Vehicle Industry [驱动绿色未来：中国电动汽车产业发展报告] (ICCT Report) URL: https://theicct.org/wp-content/uploads/2021/06/China-green-future-ev-ch-jan2021.pdf Date published: June 2021

5. China Energy Portal. (2020, October 28). Electric vehicle charging infrastructure development guidelines (2015-2020). Retrieved September 26, 2023, from https://chinaenergyportal.org/en/electric-vehicle-charging-infrastructure-development-guidelines-2015-2020/
6. National Bureau of Statistics of China. (n.d.). [中国“年产1000万+”，世界的绿色里程碑]. Retrieved September 26, 2023, from http://www.sass.cn/109011/77242.aspx

7. Hawkins, G. (2023, September 21). China’s EV shift may cut a billion tons of CO2 emissions by 2040. Bloomberg Professional. https://www.bloomberg.com/professional/insights/sustainable-finance/chinas-ev-shift-may-cut-a-billion-tons-of-co2-emissions-by-2040/

8. com. (2024, December 14). Best-selling vehicles ranking in China (November 2024) – BYD Seagull is First. Retrieved September 26, 2023, from https://carnewschina.com/2024/12/14/best-selling-vehicles-ranking-in-china-november-2024-byd-seagull-is-first/

9. (2023, June 07). BYD beats Tesla in global EV production in first half of 2023. Retrieved September 26, 2023, from https://insideevs.com/news/746064/byd-beats-tesla-ev-production/

• Effenberger, John. (2023, September 21). BYD EV teardown impresses Japan. InsideEVs. Retrieved September 26, 2023, from https://insideevs.com/news/738606/byd-ev-teardown-impresses-japan/

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