China’s electric vehicle (EV) industry plays a critical role in its geopolitical strategy, especially as it gains increasing market share in both Western Europe and Asia. In 2023, China’s EV market, accounting for 60% of the global total, is expected to maintain strong growth. The country led global EV sales in 2022, representing around 60% of these sales. This dominant position isn’t just an economic triumph; it’s a strategic move in the realm of soft power and international influence, positioning China as a key player in shaping the future of global transportation and energy policies. It’s a fascinating mixture of technology, geopolitics, soft power and marketing. All in a package that is visible and impactful in the day-to-day lives of regular people.
In Western Europe, Chinese automakers are steadily increasing their presence. They accounted for about 8.4% of the region’s EV market, up from 6.2% the previous year. Made-in-China EVs comprised 11.2% of all EVs sold in Germany in the first half of 2023, and the overall market share of China-based car brands in Western Europe’s EV market is expected to grow from 6% to 9% in 2023. This growth is indicative of China’s expanding influence in one of the world’s key automotive markets.
In Asia, the growth of China’s EV market is also significant, particularly in emerging markets like India, Thailand, and Indonesia. In 2022, EV sales in these countries more than tripled compared to 2021. These emerging markets, although starting from a lower base, are crucial for China’s strategy in expanding its influence in the automotive sector in Asia.
China’s assertive expansion in the global EV market aligns with its broader geopolitical ambitions. By dominating this market, China not only capitalizes economically but also gains significant influence in shaping global standards and practices in the automotive industry. This strategic positioning allows China to extend its influence beyond its borders, using its EV industry as a conduit for expanding its soft power and international standing.