Honda and Nissan, which were Japanese car models, impacted the American vehicle market around the 1970s and 1980s. History would soon repeat itself, but this time around, the electric vehicle market will change, and the cars to change it will be from China. After all, it is the most significant contributor to the electric vehicle market share at the moment going by the volume. Statistics from the International Energy Agency show that China had about 2.58 million battery electric vehicles in 2019. That’s quite a significant figure. The likes of the United States and Europe had 880,000 and almost a million, respectively. Therefore, it is way ahead of other countries in the sector.
Other than the electric vehicle market share, it is also leading in other related areas. For instance, out of all the fast-charging electric vehicle charging stations, 82% of them are in China. Equally important, they are also the highest contributors to public slow charging stations in the world. In January 2021, a Chinese electric vehicle model Wuling Motors’ Hong Guang Mini EV, registered more sales than the Tesla 3. The model was also doing well in the 2020 second half. Its total sales were 112,000 cars within the period, and only Tesla 3 had registered sales higher than the figure. However, the situation changed in favor of Hong Guang Mini EV after registering 25,778 cars, whereas Tesla only sold 13,843 during the same period.
If data is something to go by, a Chinese electric car was the best-selling model. Therefore, even Tesla’s most selling model, the Tesla Model 3, came second to that. It wouldn’t come as a surprise if that became the new norm. Chinese carmakers can also afford to sell the EV at an affordable price of $4500. The fact that high prices have been hindering the transition to electric vehicles means there could be light at the end of the tunnel for the sector. The Chinese government is also pushing for a state whereby more than their total number of new auto sales will be clean energy cars by 2035.
That said and done, there are some Chinese EVs with the potential to impact the U.S. auto market soon. BYD, a Chinese brand, could change it given that one of the Americans, Warren Buffett, bought its shares worth $232 million in 2008. As of 2020, the value had increased to $4.5 billion. Therefore, it is doing good, and that’s great for business even in the United States. Other automakers include BJEV, SAIC, Wuling, and NIO.