Abstract:

The study result shows that for new energy passenger cars Tier 1 and New Tier 1 cities played a pivotal role in driving the market in both 2015 and 2020, growth in Tier 2–5 cities had gained traction by 2020. Brand diversity also increased dramatically and in 2020, manufacturers sold to more markets beyond their home markets than they had in 2015. This suggests that local market protectionism has mostly been rectified. The authors also found that new energy models for all commercial vehicle types are now widely available. With respect to areas where China might increase investment and policy focus to make more progress in the coming years, urban and regional freight and Tier 3–5 cities stand out. Additionally, the accelerated urbanization and modernization process in small Chinese cities and towns is expected to lead to huge car demand. With effective policies and sufficient model availability, these cities can become large adopters of NEVs.