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How the pandemic has affected the future of Chinese electric vehicle market.

The novel Coronavirus has really shaken the world. It has caused massive economical loss and massive loss of lives around the world. While most of the governments and people are keeping a close eye on the number of new covid19 cases across the world, there is another equally important graph that they should be worried about and that is the Carbon Dioxide emissions graph.

There have been a number of attempts around the world to reduce Carbon Dioxide emissions. Some of them include the manufacturing of electric vehicles that run on electrically charged batteries rather than petrol or diesel, solar-powered geysers and other electric appliances, and electricity generated by wind turbines and wave energy.

The only upside of covid19 is that it has kept people off the roads and thereby drastically reduced Carbon Dioxide emissions around the world. In this article, we’re going to see how the covid19 has impacted the electric car industry in China.

Chinese electric car

Impact of the novel Coronavirus on the electric car industry in China

The novel Coronavirus has seriously dented the electric car industry in China. Given below are the ways in which the electric car industry has been impacted in China.

Drop in the production and sale of electric cars

The engineering and manufacturing sector has been the hardest hit around the world due to the novel Coronavirus. So naturally, the electric car industry in China has seen a slowdown in the manufacturing and sale of electric cars.

Covid19 has affected the supply chain of batteries, required to power electric cars. Hence, there was a decline in the manufacture of electric cars in China.

During February 2020, the sale of electric cars in China declined by about 79% when compared to the same month last year. BYD Auto Co. Ltd., Nio Inc., and Toyota Motor Corp. are among the hardest hit electric car manufacturers in China.

Rollback on subsidies

Car manufacturing plant

After the outbreak of the novel Coronavirus in China, the China Association of Automobile Manufacturers (CAAM) appealed to the government of China to promote automobile sales by eliminating sales tax, increasing subsidies, and reducing vehicle emission standards but the Government of China reacted in an unexpected and shocking manner.

It rolled back existing subsidies for the automobile industry and requested China’s car manufacturing firms to rely on innovation to weather the covid19 storm rather than rely on Government subsidies. 

Drop-in prices of electric cars

During the covid19 lockdown in China, many people had lost their jobs. Hence, the purchasing power of the people of China reduced drastically then.

Naturally, as a consequence of that, the demand for electric cars (and other cars) went down in China and electric car manufacturers in China slashed the prices of their electric cars to sustain their sales. This move drastically reduced the revenue and profits of electric car companies in China.

Building of electric car charging stations in China

The only silver lining in the dark cloud of the covid19 crisis is that the Chinese government has decided to build electric car charging stations in most parts of China. This is part of the Chinese government’s stimulus to reboot the automobile industry in China, especially the electric car industry.


As far as the people of China are concerned, they will find an electric car charging stations very convenient as not everyone will have the facility to charge their electric cars from their homes.


Chinese electric car

As far as India is concerned, Electric Vehicles in India constitute less than 1% of India’s automobile population but the good news is that electric car sales in India is growing at a steady pace of 2% per annum.

If US electric car manufacturing giants like Tesla, General Motors (GM), etcetera come forward to ‘Make in India’, India too can be a leading user of electric cars in the future. There is plenty of scope for growth for electric car manufacturers in India.      

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