China is building EV factories almost as fast as the rest of the world put together. Chinese manufacturers are leveraging billions of dollars from foreign and local investors to lead the burgeoning EV market.
At the moment, it is too early to say that Chinese automakers will be able to take a leading position in the electric vehicle market, but they are working hard in this direction, organizing the necessary infrastructure and expanding production capacity. Xpeng Motors, Nio, Geely and others are building new factories domestically and regularly commissioning new manufacturing facilities that allow for a gradual increase in product output.
In addition, various startups, electronics manufacturers and other companies that are new to the automotive industry are joining the battle for a place in the electric vehicle market. At the same time, they are betting that buyers in China and abroad will be ready to spend at least $ 40 thousand to buy a car from a little-known company.
China aims to become a leader in the production of electric vehicles
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The Chinese industry continues to gain momentum. LMC Automotive estimates that China will produce more than 8 million electric vehicles annually by 2028; up from around 1 million electric vehicles last year. At the same time, in Europe by 2028, only 5.7 million all-electric cars will be produced per year. North American manufacturers plan to catch up. Last month, President Biden urged the United States to step up efforts in the electric vehicle industry; noting that his country is currently lagging behind China. According to LMC Automotive, North American companies plan to produce only 1.4 million electric vehicles by 2028; while last year they produced about 410 thousand cars.
In the Middle Kingdom has already deployed the necessary infrastructure for electric service. With the support of the government, more than 800,000 public charging stations have been built in the country; which is almost twice as many as in the rest of the world. Due to the slower construction of infrastructure outside of China; many manufacturers intend to continue to produce hybrid vehicles that combine an electric propulsion system with a gasoline engine. However, the market for electric vehicles is growing rapidly and more and more major manufacturers are announcing plans to phase out the production of cars with internal combustion engines.
For new Chinese automakers will become a serious problem weak brand awareness; with this as a true outside the country as well as within it. An important factor is the presence of an electric vehicle market within the country, as well as the comprehensive support that Chinese automakers receive from the authorities.