E-car revolution: China is leading global change!

E-car revolution: China is leading global change!

China's automotive market is set for a sea change as key players and innovations take center stage at the upcoming Shanghai auto show. From Wednesday, over 100 new models, mostly electric cars, will be presented there. The China Auto Industry Association predicts that more than half of new car sales this year will be electric. This is a significant increase that reflects the rapid decline in internal combustion engine market share in China.

Political support and subsidies have greatly encouraged e-mobility, while lower electricity prices and higher oil prices provide further motivation. Incentives such as priority license plates introduced in some cities are making electric vehicles easier to access. The government measures also include the obligation for manufacturers to produce a certain number of electric and hybrid models. The NEV share of the new car market was 47% in 2024, up significantly from 31.6% in the previous year.

Market leader and competitive pressure

The dominance of BYD, one of China's leading electric car manufacturers, has increased significantly in recent years. The manufacturer recorded a market share of 29% in the first quarter of 2025 and sold 700,000 electric and plug-in vehicles. Overall, BYD was able to increase its profit by 33% to 5.1 billion euros in 2024, supported by the rapid growth of the electric car market in China. Tagesschau reports that BYD plans to sell between five and six million cars in 2025 and has already taken over market leadership in China from Volkswagen.

However, the challenges in the market cannot be ignored. The aggressive price war within the electric car industry has led to shrinking margins and multiple bankruptcies for startups such as Jiyue and Byton. Other manufacturers such as Li Auto and Geely are also showing growth figures, while Chinese brands are expanding internationally, including in Germany, South America and Southeast Asia.

Global trends and European stagnation

In the global context, there is a stable sales market for electromobility, despite stagnation in some European countries. The global sales market for battery electric vehicles (BEV) rose by almost 10% to around 11 million vehicles sold. In China, sales grew 6% in 2024, with NEVs accounting for over 40% of total sales volume, reinforcing the growth trend in this region. According to one Report from Fraunhofer ISI About 7 million BEVs and 5 million PHEVs were sold in China, underlining the country's leadership in the e-mobility sector.

In contrast, Europe saw a 4% decline in the vehicle market and a 6% decline in BEV sales. The United Kingdom has overtaken Germany as the largest European market, due to different funding policies. In this environment, foreign manufacturers, especially German car brands, are under pressure while Chinese manufacturers are expanding their international influence.

In summary, it can be said that China is not only a leader in electromobility, but also has a lasting influence on global competition through drastic changes and government support. The upcoming innovation presentations in Shanghai will be crucial to show how this dynamic market will continue to develop.