China's e-mobility: Revolutionary strategy overtakes German auto industry!

China's e-mobility: Revolutionary strategy overtakes German auto industry!

Beijing/Berlin – China's rise in the field of e-mobility is astonishing and is happening at a rapid pace. While German manufacturers like Volkswagen have made major profits with combustion cars for years, they are now seeing sharply falling sales figures in the People's Republic, where the transformation to electric is gaining momentum. The reasons for this significant change are diverse and shaped by technical progress and strategic considerations.

Political scientist and China expert Anders Hove, who worked in Beijing for over a decade and most recently worked as co-leader of a German-Chinese energy transition project, explains why China is in the fast lane when it comes to e-mobility. According to Hove, there are several factors leading to this development.

Competitive prices and economic advantages

According to Hove, one of the key reasons for the success of Chinese electric cars is the price-performance ratio. While buyers in Europe and the USA have to pay a significant premium for electric cars, in China they can purchase attractive models at reasonable prices. Hove makes it clear that China's rise is not due to unethical subsidies or lower wages, but to immense economic economies of scale. “Battery prices have fallen due to high demand, and production has become much more efficient,” explains the expert.

Behind the scenes, China is pursuing a comprehensive industrial policy strategy and using subsidies that are in many cases derived from methods that are successful in the West. Unlike Europe, where the state's influence on the economy is often minimized, China strongly promotes competition and innovation. This support has led to the Chinese automotive industry not only growing, but also constantly setting new standards.

Efficient charging infrastructure as a guarantee of success

Another key aspect of China's success in the field of electromobility is the rapid expansion of the charging infrastructure. Hove emphasizes that significantly less time has to be invested in charging vehicles in China than in Europe. Thanks to widely used digital payment methods such as Alipay and WeChat, the loading process often starts within seconds. “Compared to the often complicated payment methods in Europe, China is actually in a different dimension here,” adds Hove.

This more efficient infrastructure has enabled the number of charging stations to increase massively since 2019, which is a clear advantage for vehicle buyers. The expert compares his own experience in China, where he had to wait less than 30 seconds at a charging station for the charging process to begin, with the much more time-consuming processes in Western countries.

Changing consumer habits and mentality when buying a car

Another factor is the different purchasing habits of the Chinese. Andersen assumes that electric cars in China are viewed less as long-term investments and more as products that are regularly replaced by newer models. This promotes a culture of rapid change and continuous adaptation to the latest models and technologies. Other factors affecting electric car buyers in China range from increased national pride to a reduced focus on environmental considerations when making purchasing decisions.

Although Hove makes it clear that electric cars are environmentally friendly even if the electricity does not come from renewable sources, he is aware that long-term reductions in CO₂ emissions must play an important role in the energy transition.

The question remains whether the German auto industry can maintain its position against this increasing competitive pressure. However, Hove does not see China having an exclusive technological advantage. He believes that Western manufacturers have potential by relying on local innovation and production centers, similar to China, to ensure their future competitiveness.

But political support remains essential. There is a stable framework in China that allows the industry to continuously grow and reduce the cost of battery technologies. This is a crucial competitive advantage that European manufacturers urgently need to compete in the global market. The uncertainty of political guidelines in the West could prove to be a critical factor in the future.

For further insights and detailed analysis of the development of e-mobility in China and its impact on the global market, see the coverage www.merkur.de extensive information.