Because nowhere are the conditions for e-cars better than in China. In 2018, combined manufacturer sales reached over one million e-cars in the People’s Republic for the first time, more than half of total global production during the same year. “People’s mindsets and government policies are more focused on electric cars than in any other country,” says CEO Herbert Diess. “More and more cities, especially the mega-cities like Beijing and Shanghai, are supporting them with special benefits.”

It is true that financial subsidies for customers to purchase e-cars are currently being reduced in order to allow the explosive increase to mature into qualitative growth. However, electric cars continue to offer some compelling advantages to encourage more and more Chinese customers to buy an electrified vehicle: electric cars are not banned from driving in large cities – as is the case with vehicles with combustion engines on certain days. In addition, purchasers of an electric car can obtain registration documents faster than for conventional vehicles. And they can use their own dedicated lanes in many places.

“A healthy market cannot be based on financial incentives,” says Stephan Wöllenstein, CEO of Volkswagen Group China. “Therefore, the reduction in subsidies for electric vehicles will benefit the market in the long-term.” Quick profit is no longer necessary. This will encourage manufacturers to step up research and development of electric vehicles and make them more competitive and better. Instead of rapidly putting many electric cars with disappointing quality on the roads, the Chinese government will in future focus more on quality when it comes to electric cars.

