Li Xiang, the CEO and founder of Chinese car manufacturer Li Auto, has stated that electric vehicles (EVs) could account for more than 80% of all new vehicle sales in China by the end of 2025. This prediction is a significant increase from his February estimate of 70% NEV penetration rate by Q4 2025. Li has likened the growth in EV production in China to the industrial expansion during World War II, and he believes that the years 2023-2025 will be transformative for China’s smart EV market.
Li Auto reported an impressive Q1 2023, delivering 52,584 vehicles, marking a 65.8% YoY increase and a 13.53% increase from Q4 2022. The EV market share in China has been steadily rising, with 25% of all new car sales in 2022 being electric, and this figure increased to around 35% in March 2023.
Tech researcher Tony Seba, during a recent podcast interview, highlighted the impressive growth of the Chinese EV market and predicted that EVs could achieve 40-50% of all new car sales in China this year. The global shift to EVs is gaining momentum, and countries are introducing new pollution and emissions standards. Legacy auto brands from Germany, Japan, and the US may face significant challenges as market conditions change.
Even in Australia, EV sales are on the rise, with the EV market share reaching 8% in April, up from 1% in the same month in 2022. The ACT saw a particularly high market share of 21%. As the world continues its transition to EVs, there will be winners and losers. Companies that move early on EV production, such as Tesla and Chinese automakers, are set to see their lead increase. Meanwhile, legacy automakers that are slow to adapt may struggle to keep up.