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China's Market for Electric Cars

Written by Bryan Johannsen

China's Electric Car MarketChina appears to be the top market for electric cars if not cars in general. With a 10 digit population and only 38 million cars on the road there is no auto market with more growth potential.

Compare the numbers to the United States, 300 million people and we have nearly 240 million cars on the road. Passenger vehicles sales were up 90% over last year this past August according to the China Association of Automobile Manufacturers, with small cars taking the lead in the market.

Downtown ShanghaiTony Liu, senior VP of Sinotrust, says "Customers right now are becoming younger, they only need and can only afford smaller cars". Mr. Liu also forecasts growth of 10% to 20% for auto sales in China next year.

With the small car market booming and China's focus on electric cars, expect to see many fully battery powered vehicles on the road as well as both series and parallel hybrid vehicles.

BYD AutoThe Chinese government is also putting up funding to have 10 cities put 1,000 electric vehicles on the road as public transportation so demand is already high according to BYD Auto general manager Henry Li. BYD is just one of over a hundred Chinese auto makers vying for these government contracts as well as contracts from taxi businesses and corporate fleets.

Li suspects the demand for electric cars will at first come from the government and business but soon they will catch on with the general public, especially those packed into China's crowded city centers.

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