China enjoys unprecedented growth in plug-in car adoption

China enjoys unprecedented growth in plug-in car adoption

While Europe and the United States are grappling with the implementation of hefty tariffs on Chinese electric vehicles (EVs) to safeguard domestic markets, China continues to enjoy an unprecedented growth in plug-in car adoption. According to fresh data provided by research house Rho Motion, more than 5 million plug-in cars were sold worldwide during the January through May period of this year, up 20 per cent year over year, with 1.3 million units sold in the month of May alone. Behind this growth, China emerged as the main force, with an increase of 31 per cent year over year in the January to May period and 36 per cent in the month of May alone.

The report also revealed that Europe, which includes the EU plus EFTA and the UK, recorded a growth of just 4 per cent year-over-year, while the US and Canada (combined) noted a growth of 5 per cent. Furthermore, the European EV market declined 9 per cent year-over-year in May, while the US and Canada combined suffered a contraction of around 3 per cent.

China, the largest plug-in car market in the world, has a share of over 50 per cent. In other words, China alone accounts for more than half of the world’s total plug-in car market. At the same time, it is also the fastest growing market in the world, while the markets of Europe and North America seem to have entered stagnation. Experts are of the view that a number of reasons are responsible for the slowdown in Europe and North America, such as reduced incentives and various economic challenges.

The aforementioned stats show that the global plug-in electric vehicle market is expanding, but the rate of growth is not equal in all parts of the world. To be more specific, the world’s main three electric car markets, viz. Europe, North America and China, have witnessed different growth rates.

This year, the situation will likely become more intriguing as European authorities have announced plans to impose higher tariffs of up to 38.1 per cent on all-electric cars built in China. When it comes to the U.S., tariffs have been quadrupled from 25 per cent to 100 per cent.

As China continues to spearhead growth in the EV sector, the global plug-in electric car market appears poised for wider divergence and adaptation. Of course, innovations in production efficiency and affordability of electric cars will be crucial for sustaining market competitiveness.

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