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Electric Vehicle Production in China

01.07.2019

In order to really understand the development of the electric vehicle market around the world, one has to know what is going on in China, the world leader in the production and sales of electric vehicles (or, new energy vehicles, as they are referred to there).

At Voltia, we help companies switch to electric. One of our core strengths is comprehensive knowledge of the electric light commercial vehicle segment, so that we know what is coming and can advise our clients properly. We pay close attention to developments in China, and elsewhere in the world, not just in Europe.

Over the last few years, members of our team have made 7 trips to China to track developments there and monitor the companies, technologies, vehicle models, production processes, and trends. We want to see them for ourselves and stay in close touch with the people and companies building the vehicles to maintain our market awareness.

Our trips have expanded to include not just the vehicle producers but also the battery producers. And, as more Chinese companies look to sell their products not just domestically but also in Europe, we remain connected with these firms so we can advise our clients about what electric vehicles will be available to them, and when.

Over the course of these many visits we have come to understand a lot more about China and their approach to EVs & production, as well as developing good relationships with people at companies all over the country.

Why China?
Driven partly by environmental and health needs (to radically and quickly reduce the amount of air pollution in their country) partly by smart economic strategy (to quickly leap over the USA and Europe in electronics rather than compete in engine mechanics), and to manufacture domestically for domestic consumption, the Chinese government developed a policy and economic framework to incubate and support the development of the electric vehicle industry and market.
And, it has worked.

Many existing Chinese vehicle companies began developing electric models and new companies also emerged to develop electric only vehicles and components. Lots of R&D into battery & battery production technology to supply those vehicles has also taken place, and now China is a world leader in producing battery cells as well.

In short, China is the world leader in producing everything related to electric vehicles, and so knowing what is going on there is critical to understanding the world market, and trends. Tesla and Nissan may be far more famous in Europe and the USA, and most people have probably never heard of the 300 or so companies in China producing EVs, however these companies are doing most of the EV production in the world.

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