Electric cars are poised to be the future of transportation. While the United States has some of the most popular manufacturers around, China’s national policy might make Chinese competition dominate the market.
A national policy in Beijing has encouraged new electric car companies that will rival popular brands such as Tesla. This latest national policy is a big threat to US-based EV brands as China is already the world’s largest car market.
In fact, electric cars and other vehicles powered by renewable energy had a record sale last September in China. The Chinese market is very potent that Tesla has put up a factory there.
China is also showing off in the electric battery segment — which is the key component for electric cars. Contemporary Amperex Technology and BYD are all China-based companies and account for about a third of the global market.
An analyst from UBS suggests that the Chinese players in the EV supply chain will aggressively attempt to penetrate the overseas market. Primarily, they would use their lower materials costs as an advantage.
Daniel Yergin of IHS Markit said that EVs are important for China due to oil demand and pollution and as a competitive strength.