Electrification of Transportation: A Study of the Electric Vehicle Industry in China

The world transportation industry is experiencing a significant transaction with the emergence of new technologies in alternative energy. Among different technologies, the electric vehicle (EV) is considered to be the future trend of transportation that could replace the use of hydrocarbons fuels completely as well as reduce emission to zero. The development and commercialization of EV will have a great influence on the landscape of transportation energy in the next decade. This project assesses the current situation and future development of the EV industry in China, focusing on economic analysis and population projection. Based on market research, the study identifies the opportunities as well as challenges for China’s EV industry. Strong government support and large power battery industry are the comparative advantages for the EV industry in China. Currently, charging technology and accessibility to charging stations are the major bottleneck that hinders the commercialization of EV. Lifecycle costs analysis of different EV types was conducted to study the economic competitiveness of EV, and the results show that with government subsidies hybrid electric vehicles and plug-in hybrid electric vehicles are economically competitive in China’s vehicle market. The next 10 years will be an important phase for EV’s market penetration. According to projection, EV will account for more than 8.8% of total vehicle population in China, by the end of 2020