Journey of China's electric vehicle (EV) industry over the past decade. 

President Xi's China EV Dream: A Decade of Transformation

Ten years ago, President Xi Jinping delivered a pivotal speech that would set China on the path to dominate the electric vehicle industry. His vision emphasized the importance of developing new-energy vehicles, recognizing that claiming a head start in this sector was crucial for global competition¹. At that time, China sold around 75,000 EVs and hybrids, with the domestic market largely dominated by international manufacturers like Volkswagen AG and General Motors Co. These foreign automakers had entered China through joint ventures with local players in the 1980s and 1990s, transforming the nation from a bike-riding society to a car-driving one.

However, China aimed higher. To tackle environmental challenges and leapfrog traditional Western and Asian auto powerhouses, Beijing bet on fuel-efficient and alternative energy vehicles. In 2012, the state published guidelines to develop the industry, including sales goals, subsidies, and resources for building charging infrastructure. President Xi's speech two years later signaled China's determination to surpass even Japan, home to Toyota Motor Corp, in the EV race¹.

Tesla's Role as a Catalyst

China needed a catalyst to spur consumer interest in EVs, especially since early 2010s EVs were mostly cheap cars with limited ranges. That catalyst turned out to be Tesla Inc., which became the first foreign automaker to set up a wholly owned operation in China. With special permission, Tesla completed its Shanghai factory in 2019, motivating local players to improve their EV offerings. Fast forward to 2024, and China has achieved remarkable milestones:

1. World's Largest Auto Market: China now sells more electrified vehicles than any other country, with 9.5 million cars delivered last year.

2. Battery Supply Chain Dominance: China controls the majority of the battery supply chain.

3. BYD Co. Takes the Lead: Homegrown champion BYD Co. dethroned Volkswagen to become the best-selling brand in China and, in the last quarter of 2023, surpassed Tesla as the world's largest producer of EVs.

4. Auto Exporter: China overtook Japan as the largest auto exporter, sending 4.14 million units abroad, including 1.55 million EVs or plug-in hybrids².

Conclusion

President Xi's vision for China's EV industry has indeed come true. Walls have gone up, not to isolate, but to protect and propel China's position as a global leader in electric mobility. The journey continues, with innovation, sustainability, and technological advancements driving the future of transportation.