Chinese vehicles companies will take control of the electric vehicle market, with over 50 per cent of all EVs sold by 2026 forecast to be from China.
“There are more than 15 Chinese companies selling EVs and many of these are smaller and much less expensive models than those sold by foreign rivals,” said Mike Ramsey, VP Analyst at Gartner.
“While foreign automakers like Tesla, VW and GM are selling a lot of EVs in China, the growth is much faster with Chinese companies.”
China’s growth has been driven by electric vehicle subsidies, which ended at the beginning of this year. In addition, a number of global factors will slow the growth of EVs in other markets.
“2023 is the moment of truth to drive full electrification forward,” said Pedro Pacheco, VP Analyst at Gartner.
“The spike in electricity prices in Europe make BEV running costs less attractive, some countries, like Australia, the U.K. and Switzerland, are starting to introduce EV taxation. Global charging infrastructure still has many coverage gaps and the average quality of service is poor.
“In addition, the sharp increase in raw material prices like lithium and nickel will inherently drive BEV costs higher, which will make it harder for original equipment manufacturers (OEMs) to close the price gap with internal combustion. As a result, BEV sales may grow at a considerably lower pace or stall in some markets, making investments related to BEVs take longer to achieve break even.”
Chinese EV brand BYD is already the second biggest-selling electric vehicle brand in Australia, behind Tesla, despite being in the market for less than six months.
