China Dominates EV Market with State Support and Competition

Chinese companies are leading the world in electric vehicle sales and exports, fueled by over A$41 billion in government subsidies and a competitive domestic manufacturing sector. Between 2009 and 2022, Beijing strategically supported the EV industry to lessen reliance on oil imports and challenge established automotive powers like Germany and Japan.

This support fostered intense competition among over 500 companies, with most failing as subsidies decreased. Surviving firms, such as BYD, Geely, and Xiaomi, adapted by innovating and integrating vertically.

BYD now assembles a vehicle every 52 seconds. While Chinese EVs are gaining traction globally, particularly in Europe and Australia, they face challenges in the US due to tariffs.

China’s saturated domestic market now requires overseas expansion, but success depends on navigating trade barriers and building consumer trust. Australia is seeing a surge in Chinese EV adoption, with these vehicles overtaking Japan as the primary source of new vehicles in 2026.