Auto China Auto Show 2018, which begins today in Beijing, perfectly illustrates China's ambitions in the automotive industry.
China clearly intends to become a world leader in the production of electric vehicles, the Financial Post said. Chinese consumers have a rather high demand, but they are very price sensitive, which keeps them away from the simplest consumers. However, this does not scare local officials and car makers.
Recently, the state government took an unusual step by allowing foreign investors to acquire full ownership of local car plants. In addition, over the past few years, Chinese authorities have not spent money on subsidies to manufacturers and buyers of electric cars, investing billions of dollars in their promotions.
However, now the Chinese government is starting to review the benefit system and put more responsibility on the car. In particular, the country introduced a mandatory quota for the production of electric cars, and the Chinese car factory is now only required to produce a number of cars with electric motors.
Today, China is considered the world's largest market for electric vehicles - by 2017, the country accounts for nearly 50% of all global vehicle sales. In the first quarter of this year, sales of electric vehicles in China increased 154% over the same period last year and reached 143 thousand units. By comparison, in the United States for the whole of last year, less than 200 thousand electric vehicles were sold.
It is expected that by 2025 electric cars will reach 35% to 50% of all new cars sold in China, so it is not surprising that the views of all the world's auto manufacturers are now fixated on this market.
It can be easily checked by visiting Auto China 2018. Chinese and international cars, including General Motors, Volkswagen and Nissan, will be present at auto show several dozen electric and hybrid cars in various price categories - the cost of cheap cars will be only 152 thousand. ($ 24 thousand).
GM will perform at auto shows as well as 5 new electric vehicles. In total, by 2020, US concerns plan to offer Chinese customers a line of 10 electric cars. VW in the next 2-3 years will start selling in China, 15 new and hybrid electric vehicles, and the investment volume of German companies in the Chinese market is estimated at € 10 billion. And China BYD (by the way, which in 2017, the largest manufacturer of electric cars in the world with 113 669 sold cars) will be present at 12 hybrid car show and electric cars.
Apparently, at Auto China 2018 it will be possible to see not only China's future but also the world car market.
