Chinese consumers are increasingly choosing battery-electric and hybrid vehicles (new-energy vehicles, or NEVs) over internal combustion engine (ICE) cars.
From January to November this year, more than 2.99 million NEVs were sold in China. That is an increase of 167% compared to the same time period in 2020, and accounts for 12.7% of all new car sales, according to data from the China Association of Automobile Manufacturers.
That number is expected to grow rapidly in the coming years. China EV100, a location EV industry think tank, estimates that NEV sales in 2022 will increase more than 70% to over 5 million units.
By 2025, that number could reach at least 7 million units. They believe that is a realistic estimate, and in a more optimistic scenario it could be 9 million or 10 million units by 2025.
Even with more domestic manufacturers coming out with more NEVs in China, Tesla and Giga Shanghai is in a prime position to take a large chunk of those sales.