China: Electric vehicles account for 25% of total domestic car sales

BYD, which overtook Volkswagen to become China's best-selling car brand, now holds 10.3% of the total market share.

According to media reports, China is now the world's largest car market and has managed to adopt electric cars faster than anyone anticipated.

Reports state that 80 per cent of electric cars sold in China last year were from domestic carmakers. This rapid rise of domestic automakers in China is fueled by subsidies offered by local governments in cities where the carmakers have their factories. The rise is so prominent that China today manufactures and sells most of the world's electric cars. China also leads the way in making electric motors and refining the chemicals used in lithium-ion batteries.

In terms of domestic EV sales, reports state that electric cars accounted for almost a quarter of the car market last year, with expectations of them being over a third this year. In comparison, EVs in the USA account for less than 6%.

BYD, which overtook Volkswagen to become China's best-selling car brand, now holds 10.3% of the total market share, up from 2.1% four years ago. Tesla, which sells only electric cars, has also faced a drop in sales growth, prompting the American carmaker to cut prices.

Other international carmakers have also lost out in terms of sales and market share in China. This includes the likes of Ford & Hyundai. General Motors is another brand which has also lost out, however, they have fared better than other international automakers because of its 44% stake in Wuling.

Source: NewYorkTimes