Since the early 2000s, China began to analyze the feasibility of EV technology. From the national strategy level, the Chinese government issued a series of guidelines and planning to promote the development of electric vehicles, with the objective to accelerate China’s EV development by bringing more technologically advanced automakers and auto part suppliers, and creating more intense competition in this market.
China’s EV sales reached 1.26 million units in 2018, showing strong growth with a CAGR beyond 100% in the past five years. The growth potential of EV sales is expected to maintain in the mid-term, and China’s EV sales are to reach 1.7 million units in 2019, and 6 million units by 2025, with market size of 890 billion yuan.
The rapid development of China’s EV is creating tremendous business opportunities to batteries related companies, EV auto parts manufacturers, EV makers, charging infrastructure manufacturers and service providers. The prosperity in the EV market provides excellent opportunities for EU SMEs to enter the Chinese market. Specific components, EV battery recycling, EV charging service, and IoV are the four subsectors to be prioritised in development and developed in the near future.
China will further open up its automotive market by lowering import tariff and easing controls on foreign ownership in an automotive JV in China. EU SMEs can benefit from this growing market/growing business opportunities. EU SMEs may sell their products directly in the Chinese market, or set up a physical base in China by forming a JV with Chinese partners or creating a subsidiary, using the most suitable market entry strategy for their business.
This market report includes the following information:
1. Overview of the Electric Vehicle market in China
2. Electric Vehicle industry value chain in China
3. Opportunities for EU SMEs
4. Challenges for EU SMEs
5. Market Entry Strategies for EU SMEs
6. Conclusion
