China has become a relatively rich market for electric vehicles (EVs) in recent times, and companies like Tesla have pounced on the opportunity, according to a recent report by TradingPlatforms.com.
China posted a record number of EVs sold in the country in 2020 despite the global downturn of the automotive industry due to the COVID-19 pandemic. According to data presented by the report, 1.3 million EVs were sold in China in 2020 – a rise of 8% YoY – but that number is projected to grow by over 51% in 2021 to almost 2 million.
In 2019, the global EV market was valued at just over $162 billion and is expected to see tremendous growth in the next decade, the report states. The global EV market is projected to have a compound annual growth rate of 22.12% in the period from 2019-2026 and rise to a value of almost $803 billion in 2026.
China is a particularly strong market for EVs, where a record number of EVs were sold in 2020. However, recent policy changes around the EV industry in China and the more recent coronavirus pandemic slowed down the strong momentum EVs once generated. Despite this, the number of EVs sold in China still saw a modest increase of 8% YoY from 2019-2020 to a record 1.3 million units sold.
Demand is also expected to rebound after 2020’s sharp downturn for the entire industry and EV sales are projected to increase by over 51% to almost 2 million EVs sold.
Two brands and their vehicles carried the Chinese EV industry through a difficult period caused by the pandemic: SAIC-GM-Wuling and Tesla, the report states. The Tesla Model 3 was the most popular EV in China for a time until the Wuling Hong Guang Mini EV entered the market in the middle of 2020. As of July 2020, the Tesla Model 3 was the most registered new electric car in China with the Wuling Hong Guang Mini EV already following closely behind.
An estimated 11,000 Model 3’s had been registered by that period while 7,250 Wuling Hong Guang Mini EV had already been registered despite deliveries only starting in the same month. By the end of 2020, SAIC-GM-Wuling had become the most popular EV brand in China with an estimated 177,000 units in car sales compared to Tesla’s 137,460 units, the report says.
For more statistics and information on this report from Trading Platforms, click here.
