With an increasing focus on reducing greenhouse gas emissions and combating air pollution, China’s aggressive push towards NEV use is not only environmentally conscious but also a strategic move to establish itself as a global leader in clean transportation solutions.

The Chinese government’s commitment to transitioning to clean energy transportation is evidenced by its stringent regulations and policies. To promote the adoption of NEVs in the commercial sector, several key requirements and incentives have been put in place:

• China has introduced an NEV Credit System that mandates automakers to generate a certain number of credits by producing and selling NEVs. Failure to meet these requirements results in penalties. This policy applies to both passenger and commercial vehicles, pushing manufacturers to incorporate cleaner technologies into their fleets.
• The Chinese government provides subsidies for NEV purchases, which includes commercial vehicles like buses and lorries. These subsidies aim to reduce the upfront cost of NEVs, making them more attractive to consumers and fleet operators.
• Several major cities in China, including Beijing, Shanghai, and Shenzhen, have implemented zero emission vehicle mandates that require a certain percentage of newly purchased public transportation vehicles to be electric. This drives the demand for electric buses and other public service vehicles.
• Stricter emission standards for traditional internal combustion engine vehicles have been put in place to encourage the adoption of cleaner alternatives. These standards, such as China VI, incentivise the use of NEVs by making it challenging for conventional vehicles to meet the required emissions criteria.

China’s electric bus market has seen exponential growth in recent years and is considered one of the most mature and extensive in the world. According to data from Mordor Intelligence, the market’s growth can be attributed to a combination of government support, technological advancements and increasing urbanisation.

Generous subsidies, tax exemptions and grants provided by the Chinese government have significantly propelled the adoption of electric buses. These incentives have helped reduce the cost differential between electric and conventional buses, making the former more financially viable.

Chinese electric bus manufacturers such as BYD and Yutong, the largest EV bus manufacturer in the world, have invested heavily in research and development, leading to technological breakthroughs such as longer battery life, faster charging and improved energy efficiency. These innovations have boosted consumer confidence in electric buses.

“China has pushed ahead, determinedly and with government support, the move to electric buses”, says David Gregory, China Market Business Advisor, CBBC. “For example, in the southern city of Shenzhen, the entire bus fleet of circa 16,000 is all electric. Several China bus makers are exporting to other countries, including the UK, to support their transition to electric fleets.”

Despite its success, China’s electric bus market faces challenges related to battery technology, range anxiety, and charging infrastructure. However, these challenges have opened doors for collaboration and innovation, spurring advancements in battery technology and charging networks.

Battery technology, in particular, will likely continue to improve, leading to longer ranges, faster charging times and reduced costs. This will alleviate some of the current challenges associated with electric buses. Chinese electric bus manufacturers are expected to explore international markets more aggressively, leveraging their technological expertise and competitive pricing to secure contracts in other countries.

While electric buses have been at the forefront of China’s NEV push, there is also growing interest in hydrogen-powered trucks for commercial transportation. Hydrogen fuel cell technology presents an alternative to battery-electric vehicles, offering longer ranges and faster refuelling times. The Chinese government has recognised the potential of hydrogen-powered vehicles and has initiated efforts to develop the hydrogen economy. Shanghai Sinofuelcell, China’s largest producer of hydrogen fuel cells for vehicles, has forecasted that its sales will more than double in 2023 and that at least 2,500 new hydrogen-powered vehicles will make it onto the roads this year. However, this technology is still in its nascent stages and faces challenges such as production costs, infrastructure development and hydrogen sourcing.

NEVs in the commercial transportation sector are undergoing a transformative shift toward cleaner alternatives. With stringent regulations, robust incentives and a commitment to technological innovation, China has positioned itself as a global leader in the adoption of commercial electric vehicles in particular. Furthermore, the exploration of hydrogen fuel cell-powered trucks showcases China’s willingness to explore diverse solutions to meet its clean transportation goals. Over the next couple of decades, the evolution of China’s NEV landscape will have implications for the global transportation industry as a whole.

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The global shift towards sustainable and eco-friendly transportation solutions has given rise to the rapid adoption of electric vehicles (EVs) across the world. China has been leading this transformation and has been strengthening its EV market for over a decade. The size of the EV market – which grew 29% year-on-year in the first quarter of 2023 to over 8 million vehicles – has led to the development of a comprehensive charging network.

Although battery-powered EVs (BEVs) make up 70% the market, plug in hybrid electric vehicles (PHEV) are also seeing huge growth, with a surge of 88% year-on-year. This growth comes despite the fact that the Chinese government has discontinued the 13-year-old new energy vehicle (NEV) purchase subsidy, and is in no small part due to the country’s vast and successful EV charging infrastructure. This infrastructure means that it is not just cheaper and more environmentally friendly to drive an EV in China today, but also a lot more practical than it was in the past.

In 2014, China started to roll out EV charging infrastructure in urban areas, along highways and in key regions where EV adoption was encouraged. By 2018, there were approximately 330,000 public charging points servicing 2 million electric vehicles. Today, there are over 1.2 million charging stations, demonstrating the country’s rapid progress in building a comprehensive charging network and commitment to sustainable mobility. The dominant provider of charging stations across China was the State Grid Corporation of China, but an increasing number of private car manufacturers and energy suppliers are joining the EV charging race.

Chinese original equipment manufacturers (OEMs) have emerged as significant players in the EV market. While compatibility among different EV models is generally high, it is important to note that not all EVs made by Chinese OEMs work with the same charging stations. The charging infrastructure in China includes various types of connectors and charging speeds, leading to a requirement for adaptable charging solutions.

The compatibility of internationally made EVs with Chinese charging stations also depends on the type of charging connector used. However, as the industry has evolved, many internationally manufactured EVs now offer adaptability to the Chinese charging infrastructure. This adaptability has allowed foreign EV manufacturers to ease into China’s vast EV market with less friction.

“As with other areas of BEV technology, China continues to generate ideas to make ownership and utilisation more practical. One of the more creative ideas is the battery swap concept, which is now being widely introduced,” says Mark Xu, Sector Lead, Advanced Manufacturing and Transport at CBBC.

Battery swapping offers a quicker alternative to conventional charging, addressing the time-consuming aspect of recharging. Users can replace depleted batteries with fully charged ones, significantly reducing waiting times. This approach is particularly beneficial for EVs used by ride-hailing platforms such as DiDi and delivery services including Meituan and ele.me, where downtime affects profitability.

This concept has been embraced by Chinese EV companies like Nio. Nio has set up an extensive network of over 1,300 battery swap stations, allowing its customers to exchange batteries quickly, akin to refuelling a conventional vehicle.

International energy company bp has also recognised the potential of China’s booming electric vehicle market. Bp, known for its expertise in fuel retailing, has made strategic moves to establish a foothold in China’s EV sector. One of its initiatives involves collaborating with DiDi to develop a charging network through its joint venture, bp Xiaoju. This partnership already provides rapid charge points across a network of around 400 charging hubs, covering 30 cities.

“We’re really excited by our joint venture with DiDi in China. Their drivers are completing around 25 million journeys a day, covering approximately 300 million kilometres and all these journeys need to be electrified. We’re doing that and we’re serving other fleet customers across the country,” Richard Bartlett, head of bp pulse says. “China holds massive market potential and bp pulse has substantial potential for expansion there. And we’re expanding fast. bp pulse entered the China market in 2020 and today has around 10,000 DC rapid or faster charge points. We see massive opportunity for more growth and fast, launching us towards our ambition to be China’s leading EV charging brand, providing ultra-fast and rapid charging services to customers when and where they need it.”

As well as the State Grid Corporation of China and NIO, Chinese tech giants Tencent and Alibaba have also invested in EV charging infrastructure through their respective platforms. They aim to integrate charging services into their ecosystems, offering users the convenience of locating, reserving and paying for charging services through their apps.

In terms of international brands, Tesla has taken a unique approach to charging in China. In addition to its widely adopted standard charging connectors, Tesla has also established its own network of Supercharger stations across the country. These Superchargers are designed exclusively for Tesla vehicles and offer faster charging speeds compared to standard charging stations. This approach aligns with Tesla’s commitment to providing seamless charging experiences for its customers.

China’s EV charging landscape is dynamic and rapidly evolving, accommodating a diverse range of EV models and charging solutions. The compatibility of both Chinese and international EVs with charging stations has contributed to the expansion of the EV market. As China continues to witness remarkable growth in EV adoption, collaborations between companies like bp and DiDi underscore the global interest in shaping the future of sustainable transportation. With Tesla’s unique charging approach complementing the infrastructure, China’s electric vehicle sector is poised for continued progress and innovation.

14 September: CBBC Auto Roundtable event in collaboration with the Institute of the Motor Industry

The next CBBC Automotive Roundtable of 2023 will be hosted by the Institute of the Motor Industry at its conference centre on 14 September.

This roundtable will focus on how the industry is tackling new automotive technology and the skills gap, with speakers including Steve Scofield FIMI, Head of Business Development, Institute of the Motor Industry; Owen Edwards, Head of Downstream Automotive Consulting, Grant Thornton; Andy Turbefield, Head of Quality at Halfords Autocentres; and David Gregory, China Market Business Advisor, CBBC.

After the presentations from the Institute of the Motor Industry, Grant Thornton and Halfords, there will be a Q&A session, where you’ll get the chance to put your questions directly to the industry experts. The event will conclude with a networking buffet lunch.

Click here to register.

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