circleKenji, an advertising worker in Shanghai, wasn’t even thinking about the environmental benefits when he bought an electric car last November. He had read a biography of Elon Musk and the Tesla 3 sounded appealing. Kenji also realized that buying an electric car would allow him to avoid the long waits and expenses associated with getting license plates, which are regulated by the government.
“Obtaining a license plate in Shanghai is challenging, but if you purchase an EV, you receive a license for free,” she explained.
“The government has set an annual sales target for electric cars. However, consumers, to be honest, are not primarily concerned with environmental protection. The main reason is that everyone is buying electric cars, making it a trend.”
Kenji’s new car will contribute to the growing number of EV owners in China, the world’s largest economy, the largest carbon emitter, and currently the largest EV market. International Energy Agency reports that over half of the world’s electric vehicles are on Chinese roads.
China’s EV production and adoption is a major success story in the global market. From 2021 to 2022, EV sales in China are expected to increase from 1.3 million to 6.8 million. By 2022, China will account for more than a third of global EV sales.
China, as the world’s largest single carbon emitter, produced 33% of total global emissions in 2021. The transportation sector contributes approximately 10% of China’s emissions.
The Communist government of China has set a goal to peak emissions by 2030, and recent reports suggest they may achieve this goal sooner. As part of the plan, 40% of cars on the road will be new electric vehicles by that time. As of June 2022, there were 312 million civilian vehicles, with battery electric vehicles accounting for 40%. Approximately 3.2%. Tesla is the most popular EV brand, but domestically produced brand BYD is also gaining popularity.
China’s EV industry has experienced significant growth due to years of government subsidies and tax breaks. Major interventions have included technology and infrastructure development, as well as policies to incentivize buyers, such as free license plates.
The Chinese Communist Party has the authoritative power to implement significant policies and market interventions to reduce emissions and achieve renewable energy targets, which they have done in the EV industry. In 2001, the Party included EV technology research in its five-year plan, with a goal of 45% of new vehicle sales being EVs by 2027. Between 2009 and 2022, significant subsidies and tax breaks were injected into the market, and city infrastructure was extensively upgraded.
Located on the outskirts of Chongqing is a modern complex housing the global research and development center of automaker Changan, showcasing the transformation of China’s auto industry. The state-owned company, founded in 1862, now has joint ventures with Mazda and Ford.
Changan Automobile is now the eighth-largest EV manufacturer in China, offering a range of models from city compacts to luxury sports cars and hybrid SUVs, all powered by CATL batteries and Huawei technology. The company plans to cease production of internal combustion engine vehicles by 2025, focusing solely on electric and hybrid vehicles.
Marketing of EVs in China often emphasizes cost savings rather than environmental benefits, as confirmed by all owners The Guardian interviewed. In Shanghai, Ruirui, a finance worker, highlighted how buying an EV saved her around 100,000 RMB in license plate fees alone.
“Moreover, fuel costs are high in China, but electricity costs are low.”
The true environmental impact of EVs is still debated, with studies showing that the manufacturing process of EVs has a greater initial impact than conventional cars. However, over time, reduced emissions from EVs offset this initial impact.
After newsletter promotion
a study published in Nature this year examined the impact of electric vehicles on air quality in Beijing, Shanghai, and Shenzhen.
The study suggested a positive correlation between increased personal EV travel and improved air quality in urban areas. However, in cities like Beijing and Shanghai where electricity generation relies heavily on coal, there were higher concentrations of nitrogen dioxide associated with EV electricity consumption.
Researchers from Massachusetts Institute of Technology and Beijing Institute of Technology found “significant carbon reductions” when replacing fuel-powered vehicles with battery electric vehicles, predicting further emissions reductions in the coming decade to meet China’s targets.
“Achieving the 45% target is feasible as long as Xi Jinping continues to support the EV industry,” said Dr. Tinglong Dai, a business professor at Johns Hopkins University.
“China is excelling in the EV market, offering high quality, affordable prices, and a wide range of options. This presents a great opportunity for China to dominate a valuable market and align with the environmental goals of Western countries.”
However, Dai highlighted that Xi’s promotion of EVs goes beyond climate and economic motives.
“This is more of a geopolitical strategy to lead in the high-end industry sector. It’s a worthwhile investment even if it doesn’t yield immediate profits, given the economies of scale,” Dai explained.
While environmental benefits may not be the primary driver for EV purchases in China, they offer advantages to both buyers and the government. Kenji, who doesn’t frequently drive her Tesla, has observed the positive impact of EVs on reducing carbon emissions and improving air quality.
“Since purchasing my electric car, I’ve noticed a significant improvement in pollution levels with more electric vehicles on the road,” Kenji noted.
Additional reporting by Lin Zhihui
Source: www.theguardian.com
