China doubles down on EVS
China has some 20 towns focused solely on producing electric cars. The new hubs are costing an estimated $30bn in investment as auto makers, private capital and local government agencies join in a major EV push, reports Bloomberg.
The hubs will be specialising too, with leading vehicle manufacturer Geely Automobile building a research and production base in Yiwu, conglomerate LeEco developing its LeEco Vehicle Ecological Town in Huzhou, while Xiamen is becoming a self-driving car epicentre.
China has already spent over $36bn on EV sales subsidies and the country is responsible for over half of all passenger EV sales globally. Around 500 companies are building, or aiming to build, EVs in the market.
While there were 23m EV s sold on China in 2018, the planned phase-out of EV government subsidies is set to pick up pace this month before they are terminated in 2020, which could impact local sales. But China already produces more than half of the world’s electric vehicle batteries and prices continue to decline – that could offset the removal of subsidies that have been key to building the market.