Boulder, Colorado – While initiatives and programs for electric vehicles (EVs) are underway across the Asia Pacific region, China will be the leading market in the area for them by 2015, according to Pike Research.
The Chinese EV market has critically important implications for global market participants, the company said. While subsidies for EV purchasers, research and development support, tax incentives and public education programs have already been effective in certain markets such as Japan, market players in Japan and Korea are concerned about new challengers, mainly driven by competition in China. Pike Research predicts that the Chinese market will represent almost half of the region’s total sales by 2015.
“China, where around 55 vendors are developing electrified vehicles or launching EV development programs, will likely create and lead an entirely new category around clean transportation,” said senior analyst Andy Bae. “The country will become one of the biggest consumer markets for EVs, and global industry players want to enter this market to tap the related opportunities.”
China has one of the most extensive automobile industries in the world, with over 150 finished auto manufacturers. In contrast to Japan, where plug-in hybrid electric vehicles will continue to be the largest category of EVs, China’s central government has placed strong emphasis on battery electric vehicles.
While Japan’s relatively mature EV market will grow at a compound annual growth rate (CAGR) of less than 10 per cent between 2010 and 2015, the Chinese market will display a CAGR of more than 40 per cent during that period, the company predicts.