Why China’s electric vehicle sales will reach 1 billion in 2020, but not yet the billion mark
China’s car sales will hit a record 1 billion units this year, according to a new report.
The figure is expected to grow by over 500 percent from 2017, according an estimate by China Automotive Research, a Beijing-based think tank.
“China will be the biggest market for electric vehicles in the world in 2020,” the report said, adding that electric vehicles are the best-selling vehicle category in China.
The report estimates that by 2020, the Chinese government will spend over 5 trillion yuan ($74 billion) on incentives and sales of plug-in hybrids, electric vehicles, and electric-car-powered buses.
China will see over 1.1 million electric vehicles by 2020 and a total of 4.2 million by 2025, the report found.
By 2020, electric vehicle deliveries will be a major source of demand for China’s auto manufacturers, according the report.
Electric vehicles will be increasingly used in cities as people seek more energy-efficient vehicles to reduce their carbon footprint, the analysts added.
The Chinese government has made electric vehicles a priority, and its government-backed company, the National Development and Reform Commission, has been promoting electric vehicle adoption.
China will set an overall goal of 1 billion electric vehicles sold by 2020.
Analysts believe that the government’s goal is too ambitious, but the number of EVs sold to date in China is not yet anywhere near that goal.
In 2017, the government announced a plan to buy nearly 50,000 EVs in 2020.
That number is now at a low of about 500,000.
Chinese automakers have yet to fully adopt the technology and have faced criticism for using outdated battery technology.