Business and Economy

Cars made in China dominates the global EV industry: Here’s why

13 Mar 20236 min read
Amos Tay
Amos Tay

Content Writer

The electric vehicle war is heating up, with cars made in China taking the top spot. Said Chinese vehicles are now a force to reckon with in the international arena.

Summary

  • Cars made in China are increasingly leading the global EV industry thanks to a powerful combination of scale and supply‑chain control, particularly around battery production and key raw materials.
  • Chinese EV manufacturers are leveraging cost advantages and rapid production growth to expand aggressively into overseas markets while also dominating domestically, reshaping global auto trade flows.
  • The shift signals that anyone in automotive or related logistics must account for China‑origin EVs as a driving force: legacy vehicle makers and suppliers face strategic disruption unless they align with this new landscape.
Electric cars made in China lead a 52% margin against Europe and the United States (US), at a market size of 4.5 million. Of which, 44% of said Chinese vehicles are manufactured within China’s borders. Such data are based from the study made by the Pew Research Center.
China's large electric vehicle (EV) market share paved the way for it to be a leading hub for EV research, technology, and innovation. Such circumstance makes it challenging for competitors to rival Chinese EV manufacturers.

Establishment of a robust supply chain model

China’s low labor costs and favorable government policies make it an attractive destination for manufacturing companies. It has led to the development of an extensive network of suppliers and distributors that can provide goods at a lower cost compared to their counterparts from other countries.
Also, innovative Chinese electric car makers and entrepreneurs are constantly working to improve the country's supply chain model. This drive for innovation has led to the utilization of new technologies. It also paved the way to techniques that have made the supply chain more efficient and cost-effective.

Keeping up with global demand

According to SC Johnson College of Business, China increased its battery component market share to about 60% in 2020 from 43% in 2014.

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Cars made in China dominates the global EV industry: Here's why