KATHMANDU: Chinese electric vehicle owners are replacing their cars sooner than they upgrade their smartphones, reflecting the rapid pace of innovation in the country’s EV market, writes Bloomberg.
According to a report by the China Association of Automobile Manufacturers (CAAM) and Hejung Consulting, the average electric vehicle on Chinese roads is just 1.8 years old, compared to 8.2 years for internal combustion engine (ICE) vehicles.
The report attributes the trend to several factors, including rapid depreciation. On average, an EV retains only 43.35% of its original value after three years, encouraging owners to switch to newer models sooner.
Fast-paced improvements in battery technology, software and semiconductor chips are also driving frequent upgrades. As new models offer better range, smarter features and improved performance, many consumers are opting to replace their vehicles earlier.
The study found that 43% of Chinese EV owners replace their vehicles mainly to access the latest technology and enhanced user experience, highlighting the country’s highly competitive and fast-evolving electric vehicle market.
