China’s share of the global electric vehicle market reached 76% in October, the country’s automotive trade body said, reflecting strong demand for EVs in the country even as western tariffs risk hobbling exports.
Between January and October, sales of EVs reached 14.1m units, according to the China Passenger Car Association, with 69% of those sales in China. In October, China’s share surpassed three-quarters.
The figures suggest that China is on track to increase its share of the global EV market. Last year, just under 60% of new EV registrations were in China, according to the International Energy Agency.
The vast majority of global EV sales happen in China, the EU and the US, with China dominating the market. But tariffs imposed by the western markets in recent years have threatened to hit the brakes on China’s rapidly expanding industry, which has been named by Beijing as one of the “new three” priority areas for China’s economic development and green transition.
Chinese EVs are all but blocked from the US market. This year,Joe Biden increased the levy on Chinese electric cars from 25% to 100%. Donald Trump has promised to imposed an additional levy of 10% on all imports from China. The EU has also decided to impose tariffs on Chinese EVs of up to 35%, on top of existing duties of 10%, a decision that was condemned by China.
Although western markets are becoming increasingly difficult to penetrate for Chinese companies, the strong demand and support for EVs at home has continued. China recently doubled the subsidy available to car buyers to support EV purchases, to 20,000 yuan (£2,169) for consumers who trade in their conventional cars.
Tesla, the US car company led by Elon Musk, a close ally of Trump, appeared to be one of the beneficiaries of the new Chinese subsidy in September. Tesla’s sales increased by 7% in the third quarter.
China’s auto sales to Russia have also continued to surge. Data shared on Monday by Cui Dongshu, the secretary-general of the China Passenger Car Association, showed that exports to Russia have increased by 109% in the past two years, while exports to the US have dropped 23% in the same period.
Cui said that Chinese carmakers were “eager to export” to Russia, as international rivals avoided the market because of “risks”. The US and the EU banned the export of cars to Russia after the invasion of Ukraine in February 2022.
