Why China will Rule the Electric Car Industry

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There is one reason why automakers around the world are stepping up their game in regards to developing electric cars. While it might look like a brainer to the common person, the sole reason why this trend has been on the rise is China. This has been made possible by the massive investment from their own government. At the same time, the vision of the Chinese dominating the fast-growing industry has led to the growth of research in this area. As a result, companies from other parts of the globe including Seoul, Detroit, Stuttgart, and Yokohama have upped their games as they compete for the ultimate prize. None of these companies want to be left behind in this field. In China, the government has made it mandatory that for every five cars sold, one should be using alternative energy. There is a 2025 deadline in regards to this issue. The government has also made it clear that if international and local companies want to continue doing business in the country, they must sell more cars using alternative energy. According to an official from the Chinese government, there is a plan to do away with cars that use internal combustion engine in the long run.

A top Volkswagen official known as Jürgen Stackman said that car makers are at crossroads as they try to make the transition. Several factors motivate China to embark on clean energy technologies. The country believes that it has a dark future if it fails to act as its cities will be cloaked in smog. At the same time, China is motivated to join this industry in its efforts to become the leader in sci-fi technology. China has been on the forefront of researching about things like artificial intelligence. China has also struggled in acquiring the oil it needs to run its expanding economy. At the moment, the Far-East country is already the largest consumer of electric cars. In fact, approximately 300,000 electric cars are expected to be sold in China this year. This number is greater than that in the United States and the world combined. For instance, Chinese buy more General Motors cars than the Americans. Even with the new American Tesla, China has emerged as the second largest market for Tesla cars. However, car taxes in China are quite high compared with those of the United States. Chinese car tax is 10 times greater than that of the United States.

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