China’s electric vehicle industry is the largest in the world, accounting for more than half of total production. What’s behind its rapid growth and popularity? In this article, we’ll explore:

• The figures for the Chinese auto industry
• The price-quality ratio
• Innovation and attractive car models

The figures of Chinese electric cars in a row

You can throw together quite a few numbers that show just how gigantic the Chinese electric car industry is: based on global data, six out of the top ten best-selling brands are Chinese, 60 percent of electric cars sold in 2024 were Chinese-made, and projections show that ten million electric cars will be sold from the country this year. And those aren’t just domestic sales. In the first half of 2024, 70,000 new electric cars from Chinese brands were registered in Europe. That’s an increase of 26 percent compared to the first half of 2023. So European data also shows a huge increase in sales figures.

Not so long ago, China was not known as a car producer, especially not in Europe and the US. How did that change so quickly?

High quality for a low price

The lower price is for many people the main reason to choose a Chinese electric car. In combination with the fact that they are not inferior to European and American brands in terms of quality and innovation. An important point: Chinese electric cars now have a greater range than cars from Western brands.

Investments and infrastructure

The attractive price-quality ratio did not come out of the blue because the Chinese government has been fully committed to electric transport for over twenty years. Hundreds of billions have been spent on research, and the car industry is now reaping the benefits. In the country itself, considerable investments have been made in infrastructure. There are now almost 5.5 million charging points, which is about 65 percent of the world’s total.

High-quality and cost-effective industry

The fact that there are many charging points in China does not immediately say much about the increased popularity of electric cars in the rest of the world. But indirectly, it is a cause. By stimulating the government and emphasizing innovation, China produces high-quality electric cars. By producing large numbers, the costs per unit go down.

Access to affordable batteries

Why do you get more for your money when you buy a Chinese electric car? The lower labor costs are an important reason. But there are more factors. For example, the car market in that country has access to excellent batteries at a favorable price. On average, Chinese brands pay 18 percent less for batteries than European car manufacturers. They also come from China and the enormous volumes mean that the unit prices are lower. The Chinese company CATL (Contemporary Amperex Technology Co. Limited) is now the largest battery manufacturer in the world with a market share of 38 percent.

The development of the automotive industry in China

So you get a lot for your money when you buy a Chinese EV. But what about innovation? For many consumers, a car is still a status symbol and a little luxury can’t hurt.

Rapid modernization

China’s industry has been modernizing at a rapid pace, making its products far more advanced and high-quality, although extremely cheap products from the likes of Wish and Alibaba have done the country’s reputation no good. But the hard numbers show that China is growing rapidly in advanced industries such as AI, IT, electronics, and chemicals.

Models have become more attractive

A good price-quality ratio is all well and good, but the consumer also pays attention to the appearance. A few years ago, many Westerners did not find the cars of Chinese brands that beautiful. Furthermore, the choice was limited and there was still a stigma attached to it. Nowadays, there are many more brands with a whole series of models. Moreover, they have spent time on the appearance and the cars are therefore much more popular. On average, a Chinese car brand introduces a new series of models every 1.6 years. Western brands take almost 3 years to do this. This means that you not only have a hip model but there is also a greater chance that all the modern gadgets are built in.

Innovation comes from China

Westerners often think that Chinese technology is copied and produced cheaper. For a long time, this was more or less true. But now, China is leading in many areas. What about AR head-up displays? These provide important information through augmented reality right in the driver’s line of sight.

Another example is Nio’s swappable batteries, which eliminate the need to wait for your battery to charge. These are just examples of a huge shift. According to the Australian Strategic Policy Institute (ASPI), in 2010, only 2.4 percent of electric vehicle patents were Chinese; by 2020, that number had risen to 26.9 percent. And now, 65.4 percent of high-impact scientific publications on battery technology are Chinese. All things considered, it’s no wonder that Chinese EVs are becoming increasingly popular.