With 76% share of the global market in October 2024, electric and plug-in hybrid cars continue to gain ground in China. Chinese registrations of electric cars have almost represented 64% of global performance since the start of 2024.
China continues to establish itself as the undisputed leader in the global market for electrified vehicles (electric cars + plug-in hybrids). In October, its market share reached 76%according to the China Passenger Car Association. From January to October 2024, China represented 63.9% of global sales of 100% electric carscompared to 62.3% over the same period last year.
Undisputed leaders in their market, Chinese brands dominate and intend to export their know-how throughout the world, even if the United States and Europe have recently significantly increased customs fees.
A domination that asserts itself
Between January and October 2024, 14.1 million electrified vehicles were sold worldwide, including 68.9% in China. This result confirms an upward trend, since last year, China already represented 64% of new registrations of these “plug-in” carsaccording to the International Energy Agency.
This hegemony can be explained by a particularly dynamic Chinese market and a policy favorable to this energy, with generous subsidies granted for many years to help local manufacturers invest in research and development.
China considers electric cars a strategic priority for the country's economic development and ecological transition. By recently doubling subsidies for purchases of these models, the government is further encouraging customers to opt for these vehicles, with grants of up to 20,000 yuan (approximately 2 600 euros) for the replacement of a thermal car for an electric model.
A help that seems very modest, but let's not forget that the price of electric cars is two, or even sometimes three times lower than in Europe.
Obstacles in Western markets
Despite these good results in China, Chinese exports of electric cars face trade barriers imposed by Western markets. In the United States, tariffs on Chinese EVs increased from 25% to 100% under President Joe Biden, and Donald Trump plans to add an additional 10% tax on all Chinese imports.
The European Union, for its part, has introduced customs duties of up to 35%, in addition to the existing 10%. These measures, described as unfair by China, aim to limit competition from Chinese manufacturers in their local markets, in particular in order to support their own industry, which unfortunately lags well behind China at this level.
Export diversification
Faced with these restrictions, China is redirecting its exports to other markets. Sales of Chinese cars to Russia have exploded, increasing 109% over the past two years. In contrast, exports to the United States fell by 23% over the same period.
This dynamic is partly explained by the withdrawal of many international competitors from the Russian market after the invasion of Ukraine in 2022, leaving a space that Chinese manufacturers have rushed to fill.
Ironically, Tesla, an American manufacturer, took advantage of Chinese subsidies to increase its sales by 7% in the third quarter. The policy of supporting electric cars in China can also benefit foreign companies, because Tesla has a factory in Shanghai, a factory which notably produces the Tesla Model 3 intended for the European market.
