New Energy Vehicle Market in China by Vehicle Type and Propulsion- Forecast and Analysis 2022-2026

The new energy vehicle market share in China is expected to increase to USD 370.23 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 38.24%.

This new energy vehicle market in China research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers new energy vehicle market segmentation in China by propulsion (pure EV, PHEV, and FCV) and vehicle type (passenger NEV and commecial NEV). The new energy vehicle market in China report also offers information on several market vendors, including BYD Co. Ltd., Chery Automobile Co. Ltd., China FAW Group Co. Ltd., Chongqing Changan Automobile Co. Ltd., Dongfeng Motor Corp., Great Wall Motor Co. Ltd., Guangzhou Automobile Group Co. Ltd., Hezhong New Energy Automobile Co. Ltd., Jiangsu Kaiwo Automobile Co. Ltd., Li Auto Inc., NIO Ltd., SAIC Motor Corp. Ltd., Tesla Inc., Wuling Motors Holding Ltd., Xiaopeng Inc., Yutong Bus Co. Ltd., Zhejiang Geely Holding Group, Zhejiang Leapao Technology Co. Ltd., Zhongtong Bus Holding Co. Ltd., and Beijing Automotive Group Co. Ltd. among others.

What will the New Energy Vehicle Market Size in China be During the Forecast Period?

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New Energy Vehicle Market in China: Key Drivers, Trends, and Challenges

The growing focus on the development of NEV charging infrastructure is notably driving the new energy vehicle market growth in China, although factors such as the FCVs removed from the NEV benefits may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the new energy vehicle industry in China. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key New Energy Vehicle Market Driver in China

• One of the key factors driving growth in the new energy vehicle market is the growing focus on the development of NEV charging infrastructure.
• The government, as well as original equipment manufacturers (OEMs), are focusing on developing the charging infrastructure, which would aid in the mass adoption of electric cars and public transport vehicles.
• China has the highest number of charging stations in the world.
• As of 2021, the total number of charging stations in China reached more than 1 million. China's draft energy vehicle development plan 2021-2035 is aimed to increase the share of NEVs to 20% of the total vehicle sales in China by 2025.
• The plan also focuses on R&D areas for various charging infrastructures such as high-voltage charging, wireless charging, safety monitoring, and warning systems for charging infrastructure. Further, the government is planning to add more EV charging stations to support the target of 20 million EVs by 2025.

Key New Energy Vehicle Market Trend in China

• The application of ultra-capacitors in EV energy storage systems is a new energy vehicle market trend in China that is expected to have a positive impact in the coming years.
• Ultra-capacitors used for energy storage and for the discharge function in the battery packs for EVs are highly attractive futuristic trends.
• China-based CRRC Corp. Ltd. has already tested ultra-capacitors, and they have been in use for powering its public transport buses since 2008.
• In June 2021, the first electric bus equipped with an ultracapacitor started operating in the Tongzhou district of China. 
• The price of ultra-capacitors will decline during the forecast period, with a high demand for ultra-capacitors over batteries. Moreover, in the long term, the total cost of ownership will decrease with ultra-capacitors, as the lifespan of ultra-capacitors is more than two times compared to normal Li-ion batteries.
• The implementation of this trend can boost the growth of the electric bus industry in China, thus driving the growth of the market in focus.

Key New Energy Vehicle Market Challenge in China

• The FCVs removed from the NEV benefits will be a major challenge for the new energy vehicle market in China during the forecast period.
• FCVs were a part of the NEV policy and were getting subsidy benefits till April 2020, post which the Chinese government planned to remove these vehicles from NEV benefits. This severely affected the manufacturers who concentrated their major business on FCV rather than pure EVs. This pushed down the end user's adoption of FCVs, especially in 2020. 
• The government's strict regulations on automakers toward NEV product portfolio will, in turn, make OEMs curtail their fuel cell businesses and move on to all-electric technologies, which will require huge investments and rapid R&D activities.
• Initially, in 2017, the regulation mandated that 8% of sales by automakers should account for EVs, which was subsequently raised to 10% in 2019, and 12% in 2020. Therefore, such factors may negatively impact the growth of the market focus.

This new energy vehicle market in China analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the new energy vehicle market in China as a part of the global automotive market under the global automobiles and components industry. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the new energy vehicle market in China during the forecast period.

Who are the Major New Energy Vehicle Market Vendors in China?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• BYD Co. Ltd.
• Chery Automobile Co. Ltd.
• China FAW Group Co. Ltd.
• Chongqing Changan Automobile Co. Ltd.
• Dongfeng Motor Corp.
• Great Wall Motor Co. Ltd.
• Guangzhou Automobile Group Co. Ltd.
• Hezhong New Energy Automobile Co. Ltd.
• Jiangsu Kaiwo Automobile Co. Ltd.
• Li Auto Inc.
• NIO Ltd.
• SAIC Motor Corp. Ltd.
• Tesla Inc.
• Wuling Motors Holding Ltd.
• Xiaopeng Inc.
• Yutong Bus Co. Ltd.
• Zhejiang Geely Holding Group
• Zhejiang Leapao Technology Co. Ltd.
• Zhongtong Bus Holding Co. Ltd.
• Beijing Automotive Group Co. Ltd.

 

This statistical study of the new energy vehicle market in China encompasses successful business strategies deployed by the key vendors. The new energy vehicle market in China is fragmented and the vendors are deploying growth strategies such as focusing on the localization of their products to compete in the market.

Product Insights and News

• byd.com - The company offers new energy vehicles under the brand Arcfox.

• byd.com - Through the rechargeable batteries and photovoltaic products segment, the company manufactures and offers the sale of lithium-ion batteries and nickel batteries, photovoltaic products and iron batteries products for electric vehicles, mobile phones, electric tools and other portable electronic instruments.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The new energy vehicle market in China forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

New Energy Vehicle Market in China Value Chain Analysis

Our report provides extensive information on the value chain analysis for the new energy vehicle market in China, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

What are the Revenue-generating Propulsion Segments in the New Energy Vehicle Market in China?

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The new energy vehicle market share growth in China by the pure EV segment will be significant during the forecast period. The PEVs segment is expected to grow significantly during the forecast period owing to the government efforts to curb carbon and greenhouse gas (GHG) emissions. Favorable incentive programs and air quality targets are driving growth in the pure EV segment. 

This report provides an accurate prediction of the contribution of all the segments to the growth of the new energy vehicle market size in China and actionable market insights on post COVID-19 impact on each segment.

 

New Energy Vehicle Market Scope in China
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 38.24%
Market growth 2022-2026	$ 370.23 billion
Market structure	Fragmented
YoY growth (%)	28.85
Regional analysis	China
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	BYD Co. Ltd., Chery Automobile Co. Ltd., China FAW Group Co. Ltd., Chongqing Changan Automobile Co. Ltd., Dongfeng Motor Corp., Great Wall Motor Co. Ltd., Guangzhou Automobile Group Co. Ltd., Hezhong New Energy Automobile Co. Ltd., Jiangsu Kaiwo Automobile Co. Ltd., Li Auto Inc., NIO Ltd., SAIC Motor Corp. Ltd., Tesla Inc., Wuling Motors Holding Ltd., Xiaopeng Inc., Yutong Bus Co. Ltd., Zhejiang Geely Holding Group, Zhejiang Leapao Technology Co. Ltd., Zhongtong Bus Holding Co. Ltd., and Beijing Automotive Group Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this New Energy Vehicle Market in China Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive new energy vehicle market growth in China during the next five years
• Precise estimation of the new energy vehicle market size in China and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the new energy vehicle industry in China
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of new energy vehicle market vendors in China

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