China continues to be the world’s largest market for electric cars, leading global electric car sales by a wide margin. In 2024, China sold more than 11 million electric cars, accounting for almost two-thirds of global electric car sales.
The figure is a clear indication of how the electric car market in China has exploded, with the country seeing a 40% year-on-year increase in sales from 2023 to 2024.
The strong rise in electric car sales has made China the undisputed leader of the electric vehicle (EV) market globally.
The Role of Price Competitiveness in Electric Car Market in China
One of the key reasons China has seen such impressive growth in the electric car market in China is the price competitiveness of its vehicles. Battery electric vehicles (BEVs) have become more affordable, making them a practical choice for many Chinese consumers.
For example, in 2024, the average price of an electric car in China was considerably lower than that of traditional gasoline-powered vehicles. This price difference has made electric cars accessible to a broader segment of the population.
In addition to the falling prices, electric cars in China also benefit from a growing number of affordable models.
The availability of affordable electric vehicles has encouraged more people to make the switch to electric, even in cities with lower-income populations. With electric car sales growing rapidly, more Chinese consumers are choosing clean energy vehicles over their gasoline counterparts.
Government Support and Incentives in Electric Car Market in China
China’s government has played a crucial role in supporting the rise of electric car sales. The government introduced a range of incentives and subsidies aimed at making electric cars more affordable for consumers.
One of the most notable policies is the trade-in scheme introduced in April 2024. This scheme offers financial incentives for consumers who trade in their old vehicles for new electric cars.
The program has been a significant factor in driving the growth of the electric car market in China. By the end of 2024, around 6.6 million consumers had applied for the trade-in incentive, and 60% of them chose electric cars.
The trade-in scheme is just one example of how the Chinese government has encouraged the adoption of electric cars.
Beyond that, various local governments in China also offer subsidies and tax exemptions for electric vehicles, further reducing the cost to consumers. These subsidies have been a key factor in China’s dominance in the electric car market.
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Shift Towards Plug-in Hybrid Electric Vehicles (PHEVs) in China
While battery electric vehicles (BEVs) continue to dominate in China, plug-in hybrid electric vehicles (PHEVs) have been growing in popularity. The share of PHEVs in China’s electric car market has increased significantly in recent years.
In 2020, PHEVs accounted for only about 15% of electric car sales, but by 2024, that figure had nearly doubled to 30%. This rise in PHEV adoption can be attributed to the increasing variety of options available and the flexibility they offer drivers, with a mix of both electric and gasoline power.
The rapid rise in PHEV sales has led to a decrease in the percentage of BEVs in China’s overall electric car market. In 2020, about 80% of electric cars sold in China were BEVs, but by 2024, this percentage had dropped to below 60%.
Despite this, BEV sales in absolute terms have grown sevenfold since 2020, showing that BEVs are still highly appealing to consumers in China.
China’s Electric Car Exports
China is not only the leader in electric car sales within its borders but also a major exporter of electric vehicles. Chinese companies, such as BYD and Geely, have expanded their production capabilities and begun exporting electric cars to other countries.
In 2024, BYD became one of the largest exporters of electric cars, with shipments to Europe, Southeast Asia, and Latin America.
The increase in exports has been driven by the growing demand for electric cars in markets outside of China. For example, VinFast, a Vietnamese electric car brand, has expanded its reach into other countries, including the United States and several Southeast Asian nations.
Chinese manufacturers have also benefited from changes in import tariffs, which make their electric cars more affordable in foreign markets.
China’s dominance in the electric car market has encouraged other countries to take notice of the shift toward electric vehicles. As China’s electric car sales continue to rise, it will likely influence other markets to accelerate their own adoption of electric cars.
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The Future of Electric Car Market in China
The future looks bright for China’s electric car market. In 2025, electric car sales in China are expected to exceed 14 million units, further solidifying the country’s position as the global leader in electric car sales.
China’s electric vehicle market is expected to continue growing as government incentives and subsidies are maintained and new policies are introduced to encourage adoption.
The ongoing development of electric car technology in China is also expected to contribute to the growth of the market. As battery technology continues to improve, electric cars will become even more affordable, and their driving range will increase.
With these advancements, electric vehicles will become an even more attractive option for consumers.
Conclusion
China’s dominance in the global electric car market is undeniable. In 2024, the country saw electric car sales reach over 11 million units, accounting for a large portion of global sales. This rapid growth can be attributed to factors like price competitiveness, strong government support, and the rise of plug-in hybrid electric vehicles.
With the support of the government and continued improvements in technology, electric car sales in China are set to keep growing. As a result, China will likely remain the leader in the electric car market for the foreseeable future.
Source: Global EV Outlook 2025
