Experts predict that by 2025, newly registered electric vehicles (EVs) in China will outnumber combustion vehicles, surpassing the government's ambitious targets of 40% new energy vehicles (NEVs) by 2030 and 100% by 2035.

This rapid adoption positions China to significantly outpace Europe in the electric vehicle market, with projections indicating that more new EVs will be registered than combustion engine vehicles by 2025.

In stark contrast, only 13.6% of new vehicle registrations in the European Union were electric in 2024, underscoring the significant gap in EV adoption between China and Europe.

In 2024, nearly half of all new vehicle registrations in China were classified as NEVs, a significant rise from 94% of traditional combustion vehicles just four years earlier.

However, the European Union has raised concerns regarding the influx of Chinese EVs, which are often sold below market value due to substantial government subsidies, prompting potential trade measures to ensure fair competition.

Since 2009, China has invested over $230 billion in its auto industry, allowing manufacturers to offer EVs at prices that European competitors struggle to match due to comparatively lower levels of government support.

In addition to financial incentives, China has enacted restrictions on the registration of combustion vehicles in major cities, facilitating easier access to EVs for consumers.

Certain regions, like Hainan Province, have already committed to banning the sale of combustion vehicles by 2030, with some areas even prohibiting them for public transport as early as 2025.

This strategic shift towards electric vehicles is part of China's broader plan to reduce its reliance on oil imports and establish itself as a global leader in the EV market, a strategy that has been in the works since the early 2000s.