STR/AFP via Getty Images” loading=”eager” height=”640″ width=”960″ class=”yf-lglytj loader”/>
BYD electric cars are waiting at a Chinese port to be loaded onto the BYD car carrier Shenzhen, which was to sail to Brazil. STR/AFP via Getty Images
In 2025, 1 in 4 new car sales globally is expected to be an electric vehicle – either fully electric or plug-in hybrid.
That’s a significant increase from just five years ago, when electric vehicle sales accounted for less than 1 in 20 new car sales, according to the International Energy Agency, an intergovernmental organization that examines energy use around the world.
In the US, however, electric vehicle sales have lagged behind, reaching just 1 in 10 in 2024. In contrast, in China, the world’s largest car market, more than half of new vehicle sales are electric.
The International Energy Agency reported that two-thirds of all-electric cars in China are now cheaper to buy than their gasoline equivalents. With operating and maintenance costs already cheaper than petrol models, electric vehicles are attractive purchases.
Most electric vehicles purchased in China are also produced there by a number of different companies. NIO, Xpeng, Xiaomi, Zeekr, Geely, Chery, Great Wall Motor, Leapmotor and especially BYD are household names in China. As someone who has followed and published on the topic of electric vehicles for over 15 years, I expect that they will soon become as well known in the rest of the world.
Chinese automakers produce a full range of electric vehicles, from subcompacts like the BYD Seagull to full-size SUVs like the Xpeng G9 and luxury cars like the Zeekr 009.
Recent crash test ratings in Europe have given Chinese electric vehicles superior safety ratings, and many of them cost less than similar models made by other companies in other countries.
There are several factors behind the success of Chinese companies in producing and selling electric vehicles. Certainly, relatively low labor costs are part of the explanation. So have generous government subsidies, as electric vehicles have been one of several advanced technologies selected by the Chinese government to propel the nation’s global technological profile.
But Chinese EV makers are making other strides as well. They make significant use of industrial robotics, even to the point of building so-called “dark factories” that can operate with minimal human intervention. For passengers, they reimagined the interior of the vehicles, with large touchscreens for information and entertainment, and even added a refrigerator, bed or karaoke system.
Competition among Chinese electric vehicle manufacturers is fierce, leading to further innovation. BYD is the largest seller of electric vehicles, both domestically and globally. However, the company says it has more than 100,000 scientists and engineers looking for continuous improvement.
From initial concept models to the actual release of factory-built cars, BYD takes 18 months – half the time it takes for product development processes in the US and other global automakers, Reuters reported.
BYD is also the world’s second largest seller of batteries for electric vehicles and has developed a new battery that can be recharged in just five minutes, about the same time it takes to fill a car’s tank with gas.
An Xpeng M03, the base model of which costs around $17,000, is on display at an auto show in Shanghai in April 2025. VCG/VCG via Getty Images
The real test of how Chinese vehicles appeal to consumers will come from export sales. Chinese EV makers are eager to sell abroad because their factories can produce far more than the 25 million vehicles they can sell in China each year – perhaps twice as many.
China already exports more cars than any other nation, although they are mainly gas-powered at the moment. Export markets for China’s electric vehicles are developing in Western Europe, Southeast Asia, Latin America, Australia and elsewhere.
The biggest market where Chinese vehicles, whether gasoline or electric, are not sold is North America. Both the US and Canadian governments have created what some have called a “tariff fortress” to protect their domestic automakers by imposing 100 percent tariffs on Chinese electric vehicle imports — literally doubling their cost to consumers.
Client budgets matter too. The average price of a new electric vehicle in the US is about $55,000. Less expensive vehicles are part of that average, but without tax credits, which the Trump administration is eliminating after September 2025, nothing comes close to $25,000. Instead, Chinese companies produce several electric vehicles under $25,000, including the Xpeng M03, BYD Dolphin and MG4, without tax credits. If sold in America, however, 100% tariffs would eliminate the price advantage.
Tesla, Ford and General Motors all claim to be working on low-cost electric vehicles. However, more expensive vehicles generate higher profits, and with “tariff fortress” protection, their incentive to develop cheaper electric vehicles is not as great as it could be.
During the 1970s and 1980s, there was considerable US opposition to the importation of Japanese vehicles. But eventually, a combination of consumer sentiment and the desire of Japanese companies to open factories in the US overcame this opposition, and Japanese brands such as Toyota, Honda and Nissan are common on North American roads. The same process may take place for Chinese automakers, though it’s unclear how long that might take.
This article is republished by The Conversation, a nonprofit, independent news organization that brings you trusted facts and analysis to help you make sense of our complex world. It was written by: Jack Barkenbus, Vanderbilt University
Read more:
Jack Barkenbus does not work for, consult with, own stock, or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations outside of their academic appointment.
