China leads the world in EV infrastructure but lags behind in consumer spending power: Euromonitor

China leads the world in developing infrastructure to support the growth of electric vehicles (EV), but trails major European countries in consumer spending power on battery-powered cars, according to a report by Euromonitor International.

The country ranked seventh among 40 countries in an index evaluating the most prepared markets for EVs, improving seven places compared with 2022, according to the report by the market research company published on Monday.

The 40 countries together account for about 90 per cent of the total car market globally, according to Euromonitor. Their EV readiness is measured across four pillars: market maturity, infrastructure maturity, cost of ownership and consumer spending power.

“Importantly, China has seen a swift rise in fast charging stations, which has helped fuel greater consumer confidence in buying an EV,” said Fransua Vytautas Razvadauskas, insights manager of mobility at Euromonitor.

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Chinese smart-battery swap stations can change EV batteries automatically

Chinese smart-battery swap stations can change EV batteries automatically

China recorded the highest score of any country in the infrastructure maturity pillar, largely because of the country’s strong investment in public charging stations and fast chargers, which encouraged the adoption of EVs, according to Euromonitor.

Last year, China had 1.8 million public charging stations, about 65 per cent of the global total, and the country also had the highest ratio of fast chargers on highways at 534 per 100 kilometres of highway length, the report said.

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However, China ranked 36th in average consumer spending power, just ahead of Indonesia, Bulgaria, Thailand and India, because of its relatively lower disposable household income, the report added.

“Worsening economic conditions, the cost-of-living crisis and higher interest rates [globally] are making it more difficult for consumers to purchase new vehicles,” said Razvadauskas.

Overall, Norway, Switzerland and Sweden are the top three most EV-friendly markets in the index, largely because of their EV market maturity and overall consumer buying power, according to Euromonitor.

While India, South Africa and Brazil took the last three spots on account of limited government incentives and low incomes, the undersupply of public charging stations remains a challenge for many emerging and developing economies.

The Chinese government has set a target that at least 20 per cent of cars sold annually by 2025 should be new energy vehicles, an umbrella term that includes battery-powered cars, plug-in hybrids and hydrogen fuel cell vehicles.

By 2035, that figure rises to more than 50 per cent, as it is one of the measures to support the country’s goal of reaching peak carbon emissions by the end of this decade and net-zero emissions by 2060.

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