China becomes the core driving force of global electric vehicles

The significance of the Chinese market to the international automotive industry is unquestionable. In the past few decades, China has not only written an unparalleled success story in terms of population mobility and population development, but has also attracted almost all international automakers to join the world's largest auto market, with a development momentum that was almost unforeseeable ten years ago. More and more Chinese independent auto brands are expanding their influence in the market.

Meanwhile, the rapid development of China's auto industry is continuously shifting to new energy vehicles. The China Society of Automotive Engineers said that by 2030, the market share of electric vehicles and plug-in hybrid vehicles in China will reach 50%. By 2020, the number of new energy vehicles is expected to reach 5 million, including plug-in hybrid vehicles, electric vehicles and fuel cell vehicles. A recent research report published by the China Society of Automotive Engineers set ambitious goals for China.

Horst Binnig, CEO of German Tier 1 automotive supplier Rheinmetall Automotive, said: "Now and in the future, the Chinese automotive market will play a very important role in the promotion of electric vehicles in the country and even across borders." For more than 20 years, the company has been committed to the Chinese market, with 5,000 employees generating sales of nearly 1 billion euros. Rheinmetall Automotive also confirmed the clear trend of the Chinese market's steady transition to new energy sources.

The global supplier's product range extends from electrical components for hybrid drives, such as variable auxiliary components or pumps, to products for all-electric propulsion. Today's products include battery trays for electric vehicles or special housings for integral electric motors, which Rheinmetall Automotive will produce locally in China in the near future.

Mr Binnig said: “The automotive technology sector is paying attention to China and will continue to do so in the future, with many important data showing that the world’s largest automotive market will once again play a leading role in the electric vehicle sector.”

In fact, the Chinese government is currently strictly enforcing new EU-style emission standards, such as those now in force in Beijing and Shanghai. In addition, the corporate average fuel consumption (CAFC) requirement is to be reduced from 6.7 l/100 km in 2016 to 5 l/100 km in 2020, and then continue to decline to only 4 l/100 km by 2025. This will almost inevitably require major manufacturers to launch innovative hybrid drive systems.

New energy vehicles are an area of ​​Chinese government support, as reflected in the controversial “super target” for fuel-efficient vehicles with a fuel consumption of less than 2.8L/100km, and new energy vehicles (NEVs). From 2018, the subsidy threshold for NEVs will likely be 5%, climbing to 12% in the following two years.

At the same time, China is working to expand the network of charging stations along major transportation routes. In addition, all new buildings must have electric vehicle charging stations. One in ten of all existing parking spaces must be converted to allow charging. All in all, China is planning to add 4.8 million charging stations by 2020.

In addition, China is vigorously promoting the purchase of electric vehicles at the national, regional and municipal levels. Such incentives are not only reflected in the price of the vehicle, including purchase and motor vehicle taxes, but also involve the issue of license plates, which are of greater concern, especially in large cities. In addition, there are incentives in terms of charging vehicles. The capital Beijing is also a pioneer in this regard, focusing on the promotion of all-electric vehicles (EV).

The measures taken by the state also have a great impact on the automobile industry itself. According to the resolution of the State Council in October last year, vehicle manufacturers considering investing in new production bases in China will find it difficult to obtain approval if their production lines do not include electric vehicles. Currently, 11 Chinese companies have obtained electric vehicle production licenses.

Mr. Horst Binnig said: "The Chinese government's broad-based action plan combined with "shared mobility" or new vehicle use arrangements will help promote the Chinese electric vehicle market and consolidate China's pioneering role as the world's most important automotive market. We are convinced that what happens in China tomorrow will have a profound impact on the international automotive industry."

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.