Electric Vehicle Market in China

Apart from freedom from the oily smell and the engine noise, eco-friendliness is the most attention-grabbing feature of the electric vehicles (EV), leading to a worldwide emphasis on manufacturing efficient electric vehicles for the future world.

By grabbing 43% share in EV manufacturing, today, China is the world’s largest automotive market. By announcing that by 2025, 20% of the cars sold in China will be operating on the alternative fuel and passing new regulations mandating the car manufacturers to sell more alternative energy cars, China has become the biggest global supporter of EV.

Biggest consumer market

China has the largest number of electric vehicles on the road. The increased purchasing power of the consumers has made China the largest consumer market worldwide.

Government policies

China offered generous subsidies as an initiative to promote EV. Additionally, exemption from license-plate lotteries and registration fees act as a magnet for the first time buyers. Unavailability of the Chinese market to the global manufacturers by trade barriers and ineligibility of subsidies and stringent IP transfer requirements for the imported EV vehicles set the monopoly of Chinese auto-manufacturers in the EV market. Efficient dealer management software in China can complement the auto-makers to manage their growing dealership networks effectively.

Competitive pricing

Softening in crude oil prices poses the biggest challenge to the electric vehicle market in China to stay put with the competition. On the other hand, lower maintenance cost and fuel pricing have lead to a boom in the mix of EVs in the service fleets.

Be ahead in the competition with futuristic dealer management software

China has immense manufacturing skills. Along with this, many renowned foreign auto manufacturers like General Motors, Tesla, BMW and Nissan have already entered the Chinese EV market with an aim to launch more competitively priced electric and hybrid models in recent future. It calls for all-rounder efforts from the auto manufacturers to reduce the overall EV pricing without compromising the quality. An ideal dealer management system in China can serve as a crucial factor that will help in optimizing the parts pricing along with keeping a tight control on the inventory and schedule.

Standardization – The need of time

Lack of standardization of operation protocols leads to a variation in the governance of electric current and charging infrastructure resulting in location-wide interoperability problems and limited application of new EVs.

‘Environmental Friendliness’ - the new mantra

Today, in China, the conventional vehicles are one of the prime causes of air pollution. By switching to clean energy source, the country not only wants to rectify the air quality of its cities but also be energy secured.

Dealer Management system – The multisolution

Along with the strong support from the government, Chinese EV market has been complemented by continuous development in the supply chain capabilities in terms of electric motors, battery management systems and batteries. Robust electric vehicle management software will act as an ideal supplement to effectively manage the ever-growing supply chain potential of Chinese EV market. Additionally, the warranty management solution can achieve the much required customer satisfaction by the competent management of warranties.

All about charging

China also has its own battery electric technology. Current EV technology is considerably more expensive as compared to traditional vehicles with the battery being the largest single additional expense. The limited range of the battery is another challenge that needs to be tackled to make EV popular amongst the consumers. Deployment of EV also faces a challenge in terms of infrastructure for charging the vehicles.

With various initiatives from the government and the aid from the technology side, all in all, the new EV market in China appears to be both promising and demanding.