China will dominate the electric vehicle market with spare parts
Compared with the U.S. government, the Chinese government is very generous. The U.S. government has promised that in the next few years, the U.S. government will spend more than US$2.5 billion to promote the development of new energy vehicles. The beneficiaries will include electric car battery manufacturers, consumers, and electric vehicle builders. However, the U.S. government’s subsidies cannot absolutely surpass the Chinese government. Moreover, every U.S. government’s grant cannot possibly be “blossomedâ€.
Compared with the United States, the Chinese government is more capable of guiding its domestic auto market. In addition to providing substantial subsidies for car purchases, the Chinese government also has the firm determination to reduce domestic carbon dioxide emissions, increase domestic vehicle production, and reduce energy dependence by reducing oil imports. In 2008, 52% of China’s domestic consumption of oil came from imports. If China does not promote electric vehicles, its goal of reducing energy dependence will not be realized.
Market analysis company PikeResearch predicts that between 2010 and 2015, the sales of electric vehicles and hybrid vehicles in the Chinese market will reach 1.85 million, of which, the sales of electric vehicles will reach 1 million. In the United States, sales of electric and hybrid vehicles will reach 840,000 units and 2.3 million units respectively. Therefore, China will overtake the United States as the world's largest consumer market for electric vehicles, but the United States will remain the largest market for hybrid vehicles.
PikeResearch also believes that the global electric vehicle market will not be able to surpass hybrid vehicles. All along, the United States is the global leader in the hybrid vehicle market, and China is only in the initial stage of hybrid vehicle consumption. However, China will surpass the United States in demand for electric vehicles.
This will also drive greater demand for the parts and components market. The current auto market in China is booming, and well-known overseas spare parts manufacturers have come to China to set up factories. In the future, the development of the electric vehicle industry in China will lead to breakthroughs in the parts and components industry.
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