China EV Powertrain Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

China EV Powertrain Market Trends & Growth Drivers

Advancement in Battery Technologies Is Key Market Trend

• Currently, the development of new battery technologies, most significantly solid-state batteries, is one of the biggest trends in the market.
• Compared to , solid-state batteries are lighter and smaller, have the potential to enhance capacity and range, can be recharged more quickly, and have a smaller carbon footprint.
• Additionally, to compete with Japan and the West and commercialize solid-state batteries, CATL and BYD have formed the China All-Solid-State Battery Collaboration Innovation Platform (CASIP). 

Government Subsidies and Stringent Emission Regulations Are Major Drivers

• The Chinese government is promoting the production of EVs and providing incentives and subsidies.
• For instance, in June 2023, an incentive package worth USD 72 billion was passed, which will be in existence till 2028.
• In this package, EVs bought in 2024 and 2025 will get a benefit from sales tax up to USD 4,180, and EVs bought in 2026 and 2027 will get a benefit of USD 2,090.
• The growth of the market is also driven by the strict government norms and regulations for reducing carbon emissions because of the rising awareness of environmental challenges.
• For instance, China implemented National VI emission standards for automobiles in December 2016 and June 2018, under which all light-duty and heavy-duty vehicles are required to follow China VI-a standards by July 2020–2021 and China VI-b by July 2023.
• Such policies make traditional ICE vehicles dearer to the commonfolk and compel them to buy EVs instead.

China EV Powertrain Industry Analysis

Component Insights

• Battery is the largest and fastest-growing category, with a CAGR of 18.6% till 2030, due to the growing demand for EVs, advancing battery technology, and increasing players in the market.
• The category consists of battery packs and battery management systems, which are critical and expensive.
• Battery packs are made up of a series of cells connected in parallel or series to provide power.
• The BMS monitors and controls the performance, durability, and safety of battery packs.
• In 2022, China dominated the global battery manufacturing industry, accounting for 77% of the worldwide production, which stood at 893 GWh. This number is expected to reach up to 6,197 GWh by 2027.

The components covered in the report include:

• Transmission
• Motors
• Battery (Largest and Fastest-Growing Category)

Propulsion Insights

• Battery electric vehicle is the largest and fastest-growing category, with a market share of around 50% in 2024, because of its high availability, better performance, and consistency.
• BEVs do not need combustion engines because their power comes exclusively from batteries and motors.
• Additionally, BEVs receive the strongest monetary and policy support from the government as they are truly zero-emission.

The propulsions analyzed in this report are:

• Battery Electric Vehicle (BEV) (Largest and Fastest-Growing Category)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)
• Fuel Cell Electric Vehicle (FCEV)

Vehicle Insights

• Passenger is the larger and faster-growing category, with a CAGR of 18.5% till 2030 due to the large population and increasing demand for cars.
• China holds the second position in the list of the most-populous countries, which continues to drive the sale of passenger cars for individual and shared mobility.
• The current population of China is estimated to be approximately 1.42 billion, which is 17.72% of the global. 

The vehicle types analyzed in this report are:

• Passenger (Larger and Faster-Growing Category)
• Commercial

Regional Analysis

• Geographically, the Eastern region will hold the largest market share, of 55%, in 2024 and witness a CAGR of 18.7% during the forecast period due to the large urban population and presence of major players.
• The region consists of developed cities with significant populations, such as Shanghai, Hangzhou, Nanjing, and Suzhou.
• Nanjing has 8 million inhabitants, 10,000 cabs, 7000 buses, and one million private automobiles.

The regions analyzed in this report include:

• East (Largest and Fastest-Growing Region)
• West
• Central
• North East

China EV Powertrain Market Share

The Chinese EV powertrain market is considered significantly fragmented due to the presence of a large number of players, including major players such as CATL, BYD, and CALB as well as local players, such as Nidec. The country has a large and diverse demand, due to which it is easier for smaller players to participate. Additionally, the continuous advancement of technology contributes significantly to the fragmentation of this market.

China EV Powertrain Market News

• In June 2024, Uno Minda and Suzhou Inovance Automotive China announced their merger to make EV powertrain components, such as combined charging units, e-axels, inverters, and motors.
• In May 2024, BYD launched its fifth-generation PHEV system with the Song Plus DM-I, which provides better power, torque, and capacity compared to previous models.
• In May 2024, Volkswagen and XPENG announced their venture for the development of intelligent connected vehicles.
• In January 2024, SAIC, GM, and Liuzhou Wuling Automobiles joined a venture to launch Wuling Red 1, a battery pack for commercial NEVs.