Almost half of China’s first time car buyers want an EV: survey
New-energy vehicles are on track to account for more than half of the country’s new-car sales this year for the first time
[HONG KONG] More first-time car buyers in China want to buy battery electric vehicles (EVs) over other types of powertrains, due to their affordability, range of models and improved charging, according to a Bloomberg Intelligence (BI) survey.
About 47 per cent of prospective first-car buyers planned to choose an EV, according to the study conducted in November, which polled 1,000 people in China who indicated they planned to purchase a car in the next 12 months. That’s up from 25 per cent in the previous survey in February.
While China is the world’s biggest EV market, it’s not immune to consumer concerns about range anxiety and the performance of batteries in cold weather. But smarter EV technology, lower maintenance costs and the wider adoption of high-voltage platforms to boost charging speed is enticing buyers, according to the survey.
Accounting for existing car owners, 52 per cent of respondents said that their next car purchase will likely be one that’s battery-powered, up from 34 per cent in February.
“The country beats Europe and the US with battery electric vehicles already reaching price parity versus petrol cars, while consumers’ strong interests in advanced tech features give local startups and tech giants Huawei Technologies and Xiaomi stronger edge in the fierce market competition,” BI analysts, including Joanna Chen, wrote.
New-energy vehicles, a group that includes both EVs and hybrids, are on track to account for more than half of China’s new-car sales this year for the first time. Just over a quarter of that will be pure battery-powered cars, according to industry data.
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But concerns are growing about sales momentum stalling as the government scales back incentives for consumers, which also risks widening the gap in EV adoption between big cities and small towns.
Still, the phasing out of EV subsidies should free up more resources to build out charging infrastructure, according to BI. The government targets 28 million total charging facilities by 2027, up more than 50 per cent compared with current levels, to keep pace with growing demand, it said.
Major battery makers are already championing super fast charging times. The latest offerings from BYD say it can get around 400 kilometres (250 miles) of range with a five-minute charge, while Contemporary Amperex Technology Co Limited’s upgraded Shenxing battery offers 520 kilometres for the same charging time. BLOOMBERG
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