KATHMANDU: China has become a dominant force in the electric vehicle (EV) industry in just a few years. Five years ago, fewer than one million EVs were sold there and Chinese brands were rarely seen overseas.
By 2024, they were leading sales at home and gaining ground in emerging markets and parts of Europe, reshaping the global auto business.
Global EV sales have surged since the early 2020s. The International Energy Agency says sales neared 14 million in 2023, with China, Europe and the United States leading the way. Demand kept growing in 2024, especially in emerging economies, where sales jumped more than 60% to nearly 600,000.
One reason for China’s success is price. EVs made in China often cost thousands of dollars less than those from Europe or the U.S. Large-scale factories, integrated supply chains and competitive local suppliers keep costs low.
Past government support also helped speed up product development. Brands like BYD and Geely now sells well-equipped cars with long-range batteries at prices that appeal to many buyers.
BYD has expanded rapidly, selling millions of vehicles in 2024, while Geely and others reported record exports and new models. Chinese EVs are popular in Southeast Asia, Latin America and parts of Africa. Sales in Southeast Asia grew by nearly 50% in 2024, led by Thailand and Vietnam.
Rapid growth has also brought challenges. The U.S. and EU have raised tariffs on Chinese-built EVs, citing unfair state support. These measures protect local industries but make Chinese cars less competitive in premium markets.
Chinese automakers are adapting by investing in overseas networks, research and factories, as well as advancing battery and software technology. For buyers, the growth of Chinese EVs brings more options and lower prices, while international carmakers face stronger competition and greater pressure to innovate.
Risks remain, including factory overcapacity, trade tensions and cybersecurity concerns. How Chinese firms handle these issues will shape the next stage of the EV industry.
China’s carmakers have already transformed the market with scale, efficiency and fast innovation. The coming years will show if they can maintain that lead amid growing challenges.
