Gartner Research

Government Policies Will Drive Further Electric and Plug-In Hybrid Vehicle Market Growth in China

Published: 01 July 2016

ID: G00297129

Analyst(s): Roger Sheng


Subsidy policies and preferential city traffic regulations helped China become the biggest PHEV/EV market in 2015. However, global auto manufacturers have not prepared to benefit from this emerging market opportunity.

Table Of Contents
  • Impacts


  • Updated New Energy Vehicle Subsidy Policy Redefines Market Entry for EV/PHEV Vendors
    • Major Obstacles That Influence EV/PHEV Growth

Impacts and Recommendations

  • Local government initiatives on traffic jams and air pollution will support auto manufacturers' EV/PHEV penetration growth in China's metropolises
  • China's government encourages local auto manufacturers to make EV/PHEV models to foster its domestic automotive industry by prioritizing them in the qualification process
  • Reduced technical entry barriers for EVs and the government's supportive policies encourage new auto manufacturer entrants with an internet digital business background

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