Rural China: A Market with Huge Potential for Vehicle Electrification


On July 18, China Oil Cap Project, in partnership with China EV100, released a research report “Research On the Development of Electric Vehicles in China’s Rural Areas”. The number of motor vehicles per thousand people in China is currently 82 and is expected to double in a decade. The report suggests that China’s rural areas have huge potential to achieve large-scale vehicle electrification, considering rural residents’ increasing acceptance of electric vehicles, and better charging and parking accessibility compared with that of city residents. Vehicle electrifications will bring significant improvement in air quality in rural areas. However, challenges remain, such as improving infrastructure systems, lowering vehicle price to meet customers’ expectation, and providing more types of vehicles. On July 15, the Ministry of Industry and Information Technology (MIIT) just made an announcement with other relevant ministries to support new energy vehicle (mainly EV) expansion in rural market. Government officials from MIIT, managers from EV companies, and experts from industry associations and environmental NGOs attended the online report release. The report was covered by China Environment News and China Automotive News.