China continued to leave 2024 with a new history as the export record of electric vehicles (EVs) surpassed 2 million units for the first time, said Lu Daliang, director of the Department of Statistical Analysis at China's General Administration of Customs on Monday.
The success was driven by strong demand for electric motorcycles and bicycles, with exports exceeding 40 billion yuan ($5.45 billion).
But will 2025 be the same?
The China Passenger Car Association (CPCA) warned that EV exports may stagnate or not grow at all, affected by the European Union's additional tariffs and subsidy investigations throughout the year.
In addition, shipments to Russia and several other major markets are forecast to start shrinking.
Although China remains the largest car exporter with 4.8 million units in 2024, the industry's profits continue to decline, recording a profit margin of only 4.4% compared to 6.2% in 2020.
For the domestic market, NEV sales jumped to 47.2% of total sales, almost reaching the 50% mark, helped by government subsidy programs.
If the challenges of tariffs and thin profits continue to squeeze, will China be able to stay ahead, or will it be squeezed by increasingly fierce global competition?
