China controls 62% of the global electric vehicle market
China controls 62% of the global electric vehicle market and holds on to its lead in electric transport.
China controls 62% of the global electric vehicle market — part 1
China currently controls 62% of the global electric vehicle market. It holds on confidently to its lead in electric transport worldwide, even without selling cars in the US market, the second-largest and most profitable in the world. The US market is effectively closed to Chinese electric vehicles thanks to the 100% tariffs introduced by decisions of former President Joe Biden in 2024. More than 1.5 million electric cars were sold in the United States in 2024.
China is therefore betting on other markets, including Europe, Latin America and Southeast Asia. Europe, however, also restricts sales of Chinese electric vehicles, in effect starting a trade war with China to protect its markets from cheap Chinese electric cars.
Looking at the chart for Europe, Chinese manufacturers took a share of around 4% of the 578,000 electric vehicles sold in Germany last year. In the United Kingdom, France, the Netherlands and Italy, China accounts for 7%, 5%, 6% and 6% of total electric vehicle sales in those countries respectively. Chinese manufacturers sell more of their electric vehicles in Spain (10%) and Austria (11%).
Beyond the developed markets of Europe and the United States, and Canada, Chinese electric vehicles are a great success in developing countries. In Brazil, the largest country in Latin America, for example, 82% of all electric vehicles sold in 2024 came from China. China holds 70% of the market in Mexico. In India, the largest country in South Asia, and in Nepal, China holds 23% and 74% of the electric car market.
In Southeast Asia, China accounts for 77% of all electric vehicles delivered to Thailand, 75% to Indonesia and 52% to Malaysia. Chinese electric vehicles have proved popular in Israel, Australia and New Zealand, where they account for 64%, 26% and 15% of sales.
China controls 62% of the global electric vehicle market — part 2
As I noted above, the main consumer of Chinese electric cars is the domestic market and the developing countries of Latin America and Southeast Asia, which together provide the bulk of the 62% of global electric car sales accounted for by China. According to analysis by Strategy Partners, EU and US countries account for 18% and 11% of global electric car sales.
China’s success can be explained by several factors:
First, in many of the countries where China dominates there is no strong local car industry and these countries either do not try to protect their markets or protect them only weakly, which gives Chinese manufacturers the chance to dominate.
Second, state support in China must be taken into account. By some estimates, from 2009 to the end of 2023 Chinese electric vehicle manufacturers received state subsidies worth at least $231 billion, which was substantial help in conquering world markets and cutting the cost of these cars. That is a serious competitive and price advantage for China!
Third, China has managed to take control of the entire electric car production chain. China also controls 83% of the world’s lithium-ion battery production, which is used in electric vehicles, according to Bloomberg. At this stage the United States is still forced to buy batteries from Chinese companies.
China also has nickel and lithium, which are needed for electric vehicles. Many of China’s competitors lack them. China controls almost 70% of world lithium production and more than 80% of the processing of battery materials. Six of the world’s ten largest battery suppliers are Chinese. CATL, for example, controls almost a third of global battery supplies.
Moreover, China’s share of world lithium reserves has grown from 6% to 16.5%, according to the Xinhua news agency citing data from the China Geological Survey, which lifted the country from sixth to second place on this measure, ahead of Australia, Argentina and Bolivia. Chile ranks first by lithium reserves.
Fourth, China’s successes point to serious progress in the scientific and technical potential of the country’s car industry. According to some analysts, China’s serious advantage lies in mass and affordable technologies. In the mid-range segment, for example, buyers are drawn by the chance to get better range and power with a host of extra premium features. Chinese cars also stand out for improved quality and significant progress in design.
Fifth, Chinese electric vehicle manufacturers pursue an aggressive strategy in world markets and adapt quickly to market requirements, which makes them a serious threat and competitor in the global car industry, especially to the United States and Europe.