by The electric vehicle market in China is not just growing; it is evolving faster than most can realize. With new models appearing at an incredible pace, local automakers are not just keeping up with global trends but are setting them themselves.
And they are not building electric cars in a vacuum. Domestic demand, especially among young people and first-time car buyers, is pushing this change forward.
It turns out that more and more such buyers are leaning specifically towards electric vehicles. A recent Bloomberg Intelligence study showed that 47 percent of potential first-time car buyers in the country plan to purchase an electric vehicle within the next 12 months. This is a sharp jump compared to 25 percent in February.
If we broaden the scope to include all potential car buyers in the country, the trend persists. A full 52 percent now state they intend to choose an electric vehicle as their next means of transport, compared to 34 percent back in February and March 2024.
Popularity of Different Technologies
Interest in electric vehicles with extended range, which offer additional kilometers thanks to an onboard generator or similar technology, is also gaining momentum. According to the latest data, 8 percent of surveyed buyers stated they would consider such an option for their next purchase.
Interestingly, the Bloomberg survey also found that plug-in hybrids are rapidly losing ground. Only 12 percent of respondents now consider them for their next car, a sharp drop from 23 percent in February.
Conventional hybrids have retreated even further. Once considered a smart middle option, their share fell from 15 percent in February to just 9 percent in November.
However, demand for traditional internal combustion engine cars has not disappeared, which is somewhat surprising. 19 percent stated they would choose an ICE model for their next car. It is worth noting that only 1,000 people participated in the survey, so drawing definitive conclusions based on such a small sample is difficult.
Reasons for the Sharp Growth
According to Bloomberg Intelligence analyst Joanna Chen, competitive prices for electric vehicles in China have contributed to exceptionally strong demand for them.
The country is ahead of Europe and the US because battery electric vehicles have already reached price parity with gasoline cars, while strong consumer interest in advanced technological features gives local startups and tech giants Huawei Technologies Co. and Xiaomi Corp. a stronger advantage in fierce market competition.
This dynamic indicates a deep transformation of consumer preferences, based not only on environmental awareness but also on economic feasibility. Achieving price parity has made electric transport more accessible to the general public, which is a key factor for the mass market. The success of local companies like Huawei and Xiaomi in this sector highlights how technological innovation and consumer knowledge intertwine, shaping a new reality for the automotive industry where traditional giants may find themselves in the role of catching up. This also poses new challenges for European and American manufacturers, who will have to find ways to compete not only in technology but also in cost to maintain their positions in the global market.
