Factors Driving EV Adoption in China

China's significant adoption of electric vehicles (EVs) can be attributed to various supportive government initiatives, including substantial subsidies for consumers and manufacturers. These financial incentives have successfully encouraged millions to choose EVs over traditional internal combustion engine (ICE) vehicles, leading to China housing half of the world’s electric cars. Furthermore, the commercial fleet sector plays a critical role in this transition, with a staggering 87% of new ride-hailing vehicles in China being EVs as of 2023. However, this expanding market has intensified competition among numerous manufacturers, resulting in many companies struggling to survive amid this evolving landscape.