Major Developments in 2024

2024 marked a pivotal year for China’s EV market, solidifying its position as the global leader in EV adoption and innovation. Despite global economic uncertainties, the market witnessed robust growth, driven by government support, technological advancements, and evolving consumer preferences. The EV market continues to expand, with significant increases in sales both domestically and internationally.

EV sales reached 13.9 million units in 2024, a 33% year-on-year increase. Over 2 million EVs were exported for the first time, with Chinese brands like BYD, NIO, and Xpeng expanding aggressively in Europe, Southeast Asia, and Latin America.

Government Policies Driving EV Growth
To advance its “carbon peak” and “carbon neutrality” goals, and implement the New Energy Automobile Industry Development Plan (2021-2035), China updated its EV policies in 2024. The EV purchase tax exemption, originally expiring in 2023, was extended to 2027, alongside new incentives for trading in old vehicles for EVs.

In April 2024, ministries launched a pilot program to improve charging and battery swap infrastructure in rural areas, aiming for full township coverage. The Ministry of Finance will provide incentive funds to support these efforts and boost EV adoption in pilot regions.

Technological Advancements in Batteries and Charging
In 2024, China made major technological strides in EVs. Battery makers like CALB, CATL, and EVE began trial production of all-solid-state batteries, accelerating industrialisation. Lixiang Auto introduced a 5C fast-charging battery, while automakers, including NIO, launched or prepared Level 3 autonomous vehicles. Fierce competition, driven by policies, innovation, and consumer demand, has led to mergers and exits of smaller firms, with tech giants like Huawei and Xiaomi deepening ties with automakers.

China is also advancing EV battery recycling for sustainable growth. In late 2023, it introduced stricter management measures, with official regulations expected in early 2025. In August 2024, MIIT updated industry standards to strengthen oversight of waste battery utilisation.

In 2024, China’s EV market demonstrated robust growth, technological leadership, and policy-driven sustainability. With strong government support, infrastructure expansion, and global market penetration, China is poised to dominate the global transition to electrified mobility, while addressing critical challenges like battery recycling and carbon neutrality.

Demonstration Projects

“Smart Streetlight + Charging Pile” Integrated Project in Shenzhen
This model saves land and increases charging pile density. By the end of 2024, Shenzhen will deploy smart streetlight charging piles in multiple districts, easing new energy vehicle charging and promoting smart urban infrastructure. This project also offers a replicable model for other cities, integrating charging piles with urban public facilities.

This model saves land resources and increases the density of charging piles. By the end of 2024, Shenzhen will have deployed smart streetlight charging piles in multiple districts, easing the charging of new energyvehicles and promoting smart urban infrastructure. This project also offers a replicable model for other cities, integrating charging piles with urban public facilities.

JD Logistics New Energy Delivery Fleet
As a leading e-commerce logistics enterprise in China, JD Logistics actively responds to the national green logistics policies and vigorously promotes the adoption of new energy logistics vehicles. The company is gradually replacing traditional fuel-powered delivery vehicles with electric logistics vehicles nationwide, particularly establishing urban delivery fleets primarily composed of EVs in first-tier cities such as Beijing, Shanghai, and Guangzhou.

JD Logistics is China’s first logistics company to deploy battery-swapping EVs on a large scale. This initiative is projected to increase energy storage utilisation in logistics parks by over 25%, reduce deployed vehicles by more than 20%, enhance per-vehicle carbon reduction by over 15%, and achieve an overall carbon reduction rate exceeding 35%2.

By adopting battery-swapping technology, JD Logistics also collaborates with partners across the energy industry chain to implement an integrated innovative energy-saving and emission-reduction solution encompassing “parks + transportation + second-life utilisation,” accelerating the development of green logistics parks and sustainable transportation.

JD Logistics’ electric delivery fleet provides green logistics solutions for the e-commerce industry, driving the large-scale adoption of new energy commercial vehicles in urban delivery sectors.

Shanghai Jiading District Intelligent Connected Vehicle Demonstration Zone
Jiading District in Shanghai is a key testing hub for China’s intelligent connected vehicle (ICV) technologies, focusing on autonomous driving and vehicle-to-everything (V2X) advancements. The district features ICV testing roads with 5G base stations, high-precision maps, and roadside perception devices. Automakers like SAIC Motor and NIO are conducting Level 3 (L3) and higher autonomous vehicle tests and demonstrations in the area.

As of 2024, Jiading has achieved the full opening of its intelligent connected vehicle testing roads, with approximately 9,100 test scenarios available. It has also realised the first city-wide, full-scenario, and full-type large-scale demonstration of autonomous vehicles in China.

A total of 22 enterprises and 682 autonomous vehicles have conducted test demonstrations in Jiading, accumulating 22.41 million kilometres and 1.35 million hours of testing. This initiative supports standardising and scaling ICV technologies while promoting the development of new energy vehicles and intelligent transportation systems.

Outlook

By 2025, driven by technological breakthroughs, policy support, and shifts in consumer preferences, the automotive incremental market will enter a stage dominated by EVs. While the growth rate of the EV may slow down, the overall EV marker will still maintain rapid growth.

From the aspect of policy support, after the industry matures and develops self-sustaining capabilities, the intensity of policy support may weaken by 2025. Regarding the choice of EV types, PHEVs, which combine advanced electric and fuel technologies, effectively address the incremental market issues and the new positioning challenges of different technologies, becoming an important force in the EV increment. In terms of usage scenarios, commercial EVs are entering a rapid growth phase, with penetration
rates expected to rise quickly.

For technological development, the new generation of battery products represented by solid-state batteries is accelerating mass production, with a full supply chain and multi-entity layout, thereby speeding up the industrialisation process.

The 2025 EV market will be defined by innovation, competition rigour, and cross-industry synergies. While challenges like supply chain resilience and cost parity remain, the sector’s alignment with global sustainability goals ensures its role as a cornerstone of the future low-carbon economy.