China's long-term strategic investments in electric vehicles, which it started seriously about 15 years ago, have begun to bear fruit. China has identified electric vehicles as a "strategic emerging industry" in its "Made in China 2025" plan and it is estimated that it invested approximately 60 billion dollars between 2009 and 2017 to develop the sector.
This support from the country, along with incentives that direct consumers to buy electric vehicles and the obligation to convert fleet vehicles to electric, created a comprehensive ecosystem while accelerating the adoption of electric vehicles. Today, more than 50 percent of new vehicle sales in the country are electric vehicles.
With the long-term investments made, China has transformed from a follower in the automotive sector to one of the world's leading electric vehicle markets with a competitive model. It is seen that Chinese manufacturers have adopted an industrial policy that leads in technology, pricing and market share instead of following global trends and have matured this approach. A historical turning point is being experienced in the global automotive industry as Chinese brands leave established Western manufacturers behind.
China’s largest manufacturer delivered 416,388 electric vehicles in the first quarter of 2025, ahead of its rival, which delivered 336,681 units, and rose to the top of the list compared to its US rival. It also produced 1,777,965 electric vehicles in 2024, exceeding its rival’s full-year production of 1,773,443 units.
The competition extends far beyond these two companies; many Chinese automakers now offer competitive models in lower price segments than the brands that once dominated the market. The weakening of competitors due to falling sales in Europe and declining demand in major markets suggests that the momentum of Chinese manufacturers will continue in the coming period.
Electric vehicles continue to cause major change in the entire automotive sector and the aftermarket. While the existing aftermarket and technology requirements for internal combustion engine vehicles are changing, new markets, new supply processes and a new ecosystem continue to emerge in the automotive sector.
Batteries, which are the most important in electric vehicles and have been subject to serious R&D investments, will soon offer longer ranges. Automotive companies and the sub-industry will make long-term investments in this area. It is predicted that the sub-industry market will completely change in 2030 and beyond, along with the sensors that the automotive sector needs for autonomous, connected and electric vehicles. Engine parts, transmission and injection systems used in internal combustion engines will become history day by day.
This situation needs to be defined as a major change and a new ecosystem. In addition to consumer expectations and financing needs, the need for long-term commercial financing by the automotive industry and the sub-industry will become even more important for sectoral development. While the major players in the automotive sector will increase their partnerships with new generation start-ups or technology companies and share the R&D burden, they will also try to keep up with the change.
Of course, this transformation in the automotive sector will also bring about significant developments in the field of labor. New job fields and career opportunities that do not exist today but will be shaped by different dynamics in the future will emerge. Although the economic impact may seem painful at first, these new dynamics will eventually come into balance with the goal of a sustainable world and increasing employment opportunities.
Along with this change in the automotive sector, the increase in battery production and demand for battery raw materials will also bring about the development of the mining industry. The rapid change and increase in demand may cause price increases in critical raw materials, especially nickel and lithium. Battery production facilities located in the regions where these raw materials are extracted will spread to other continents over time.
One of the most important elements in the development of electric vehicles is the need for countries to rapidly develop their charging infrastructure so that consumers can more easily adopt these vehicles. Creating a charging infrastructure compatible with the electric vehicle fleet will be one of the most important topics of the sector in the coming years. The biggest obstacle to the widespread use of electric vehicles today, the lack of charging stations, will contribute to the acceleration of this development by becoming widespread on intercity roads.
