When it comes to the electric vehicle (EV) market, China is leading the charge ahead of traditional automotive juggernauts like Germany and Japan. China’s new EV sales increased by 82% in 2022, accounting for nearly 60% of global EV purchases. This greatly surpasses that of the U.S., Norway, and other Scandinavian nations that were early adopters of EVs.
3 Drivers of China’s Booming Electric Vehicle Market
China now accounts for nearly 60% of EV sales worldwide.
January 03, 2024
Xiu Huo/Getty Images
Summary.
More than half of the electric vehicles (EVs) on roads worldwide are found in China. In 2022, new EV sales in China grew by 82%, and the country provided 35% of global EV exports. While the U.S., Norway, and other Scandinavian nations were early adopters of EVs, and Germany and Japan have long been automotive powerhouses, their EV markets have lagged in mass market adoption compared to China. How did China get to this point? What can companies looking to scale up their innovations learn from their approach? This article outlines three key reasons for the growth of China’s EV sector: experimenting in adjacent industries, encouraging operational solutions, and doubling down on core technology.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Sharpening Your Business Acumen. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Take your career to the next level by learning business and finance basics, and developing an enterprise mindset.