Image CreditsThe largest automobile unit production in the world is accredited to none other than the Automotive Industry of China. For more than a decade, China has stood on top of the food chain. Some of the biggest names include Chang'an, Dongfeng, FAW, and SAIC Motor, to name a few.While most cars manufactured in China are sold within the country, however in recent years, hundreds and thousands have been exported worldwide. The country is building some of the most globally competitive auto companies. According to a recent study by Statista.com, in 2019, the total volume of automobile industry sales in China reached 25 million units, out of which 21 million were passenger cars. The most popular choices of cars in China include multi-purpose vehicles, SUVs, and sedans.BEV (Battery Electric Vehicles) is sold three times more than PHEV (Plug-in Hybrid Electric Vehicles), with BEV sales reaching over 1 million units. As of 2020, commercial vehicle sales volume was 4.32 million, and 9.35 million SUVs were sold in total.· The Decision ItselfImage CreditsOn Wednesday, 22nd of March, 2020, China's authorities scrapped the vehicle purchase tax on new-energy vehicles (NEV), effective in 2021 till 2022. The new policy was declared jointly by three government departments, including the Ministry of Finance and the State Taxation Administration. China has already has withdrawn the 10% tax on the purchase of new vehicles for a number of new-energy cars in the past as well including the likes of Tesla's Model 3s.According to a recent study by Argus Media, China produced over 1.36 million NEVs in 2020. And this definitely is a move to promote their locals into buying more of them.· Desire to Dominate Global MarketImage CreditsIn order to understand just how much a dominating player China has become in recent years, we have to understand the fact that it has a global share of 28% in the global vehicle production. Since the early 1990s, their automotive industry has grown preposterously.After entering into the WTO (World Trade Organization) in 2001, China's national automobile market grew by 21% every year from 2002 to 2007. In 2009, China finally surpassed the US by producing 13.79 million automobiles (8 million passenger cars and 3.41 million commercial vehicles) and thus becoming the world's largest automobile producer by volume. Furthermore, by June 2019, China had about 250 million cars, and the China Association of Automobile Manufacturers smiling from ear to ear. · Encouraging New BuyersImage CreditsChina is pursuing the goal of all-electric cars on the road, and the authorities are clearly showing signs that they are willing to make outrageous offers to promote this trend. Pupils looking for the best assignment writing service UK also got excited to hear about this recent development.This tax exemption on the purchase of NEVs is a major action to encourage locals to invest more in EV technology. National policies in Beijing have been reported to motivate businesses to rival California-based Tesla Company in the US. According to UBS (United Bank of Switzerland), the electric battery companies BYD (Build Your Dreams) and CATL (Contemporary Amperex Technology) account for more than 30% of the global market share. You might want to request experts to write my essay if you are assigned to write about the Chines electric vehicle market. · Increasing Economic OutputImage CreditsEvery year since 2002, the Chinese Automotive Industry has contributed more than 5% to the annual gross product of China, and by 2010 it reached 7.4% of the GDP. However, in 2020, due to the coronavirus pandemic, sales dropped, and as did manufacturing as well, leading to a downfall in economic output. According to McKinsey & Company's study, China contributed nearly 35% of worldwide growth from 2011 to 2020, with the ROW (rest of the world) contributing 42%, excluding Europe and North America. There is no doubt that China is an economic superpower, and increasing its economic output leads to an evident increase in growth for the rest of the world as well. · Move towards Cleaner ChinaImage CreditsChina has been ridiculed as being one of the worst when it comes to air pollution. According to the US Embassy's report, energy-related carbon dioxide emissions increased by more than 80% during the 2005-2019 period. The air pollution is so bad that it is harming citizens. This is why much of China's policies are now being directed towards renewable energy and clean energy consumption. This tax exemption for NEVs is one of its strategies contributing to a much bigger future plan. Conclusion Chinese electric cars are going to flood the world, and it seems like production this year wouldn't be slowing down any time soon. China is a force to be reckoned with, a gigantic contributor to the world's economy, and a major shareholder in the global automotive industry.I wish China all the best towards this tremendous act of reducing carbon footprint and encouraging people to adopt cleaner technology for their mode of daily transportation. BANZAI!Author Bio Stella Lincoln currently works as the Assistant Editor at Assignment Assistance. This is where higher education students can request professionals to write my essay. During her free time, she likes to surf the internet to find life hacks that she can try at home.
