China’s share of global electric car market rises to 76% | Chinese economy

China’s share of the global electric vehicle market reached 76% in October, the country’s automobile trade association said. This reflects strong demand for electric vehicles in the country, although Western tariffs could hinder exports.

According to the China Passenger Car Association, electric vehicle sales reached 14.1 million units between January and October, with 69% of those sales occurring in China. In October, China’s share exceeded three-quarters.

The numbers suggest China is on track to increase its share of the global electric vehicle market. According to the International Energy Agency, almost 60% of new electric vehicle registrations took place in China last year.

The vast majority of global electric vehicle sales occur in China, the EU and the US, with China dominating the market. But tariffs imposed by Western markets in recent years threaten to slow China’s fast-growing industry, which Beijing has identified as one of the “new three” priority areas for China’s economic development and green transition.

Chinese electric vehicles are all but excluded from the US market. This year, Joe Biden increased the levy on Chinese electric cars from 25% to 100%. Donald Trump has promised to impose an additional 10% levy on all imports from China. The EU has also decided to impose tariffs of up to 35% on Chinese electric vehicles on top of existing 10% tariffs, a decision condemned by China.

Although it is becoming increasingly difficult for Chinese companies to penetrate Western markets, strong domestic demand and support for electric vehicles continues. China recently doubled the subsidies available to car buyers to support electric vehicle purchases to 20,000 yuan (£2,169) for consumers who trade in their conventional cars.

Tesla, the US auto company led by Elon Musk, a close Trump ally, appeared to be one of the beneficiaries of new Chinese subsidies in September. Tesla’s revenue rose 7% in the third quarter.

China’s car sales to Russia also continued to rise. Data released on Monday by Cui Dongshu, secretary general of the China Passenger Car Association, showed that exports to Russia rose 109% in the past two years, while exports to the United States rose 23% in the same period have declined.

Cui said Chinese automakers are “eager to export to Russia” as international competitors avoid the market due to “risks.” The US and EU banned the export of cars to Russia after the invasion of Ukraine in February 2022.