Nature Positive Role of the Automotive Sector China Deep dive

Emerging EV players leading the charge China’s automotive sector has rapidly caught up with global standards and is now a global leader, particularly in the production and manufacturing of EVs. China sees EV manufacturing as a strategic emerging industry and EV adoption as critical to reducing air pollution and supporting China’s energy transition. Together with its related sectors, the EV industry has received increased investments since the 2009 launch of key policies incentivizing automotive industry development in China. Such policies include the notice given by the Ministry of Finance and the Ministry of Science and Technology on issuing subsidies for energy savings and new energy vehicles.16 China’s EV market share has consistently exceeded expectations. For example, EV penetration rose from 5% in 2019 to 32% in 2023.17 By 2030, EVs are expected to make up 90% of vehicle sales.18 China’s EV market maintains rapid growth FIGURE 4 2030F EV sales volume EV penetration rate2019 2020 2021 2022 20233,200 950 689 352137 121 5% 5% 13%26%32%90%China EV sales volume and penetration 10,000 units, 2019-2023 Source: CPCA; Qing Wang Nature Positive: Role of the Automotive Sector – China Deep-dive 13