Global auto makers expand in China's NEV market

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China is the world’s biggest auto market. It’s been so since 2009, and it’s also the world's most important one.

So when the Chinese government announced a new scheme to promote New Energy Vehicles, or NEVs, it was picked up rapidly by global automakers.

This September, China set an annual credit quota system stating that from 2019, all auto manufacturers either manufacturing in or importing more than 30,000 units a year into China, must manufacture or import NEVs that are equivalent to at least 10 percent of the total number of vehicles they sell.

In the case of big conglomerates such as the Volkswagen Group, that’s a lot. For example, this August, the VW group sold more than 328,000 passenger vehicles in China.

With 2019 approaching fast, the multinationals are all rushing to form joint ventures with Chinese firms. So, in the case of VW, it announced an investment of 10 billion euros that will lead to the manufacture of 40 new NEVs in China by 2020.

The race is on. Developing and manufacturing enough new electric vehicles will help automakers sell their other models in the world’s biggest market.

Chinese domestic automakers that form joint ventures with international conglomerates are benefiting from new technologies and economies of scale.

In this special extended report, we speak with a leading industry analyst and CEOs, we learn from a prospective NEV buyer what all this new choice means, and we hear from an environmental expert about how all this can be a win-win for China and global automakers.