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Mainland China Rewrites the Global Map for Electric Vehicle

 

Date: 2024-02-01

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News briefing

As per a report by Nikkei, the export volume of automobiles from mainland China is projected to reach 4.91 million in 2023, surpassing Japan for the first time and establishing itself as the largest automobile exporter worldwide. Furthermore, China is expected to continue expanding its production scale in the field of electric vehicles (EVs), thereby reshaping the global power map for EVs.

 

Impact analysis

In the PCB industry, EVs have not only integrated most core PCB products but also expanded into areas crucial for EVs, surpassing those of traditional fuel vehicles. This expansion is evident in the rapid development of applications such as autonomous driving, battery-soft substrate, and smart cockpits. With overall shipments reaching economies of scale, EVs are now considered another significant growth market for PCB, alongside personal computers and smartphones. As per statistics from the research organization GlobaData, worldwide sales of EVs (including battery, hybrid, new energy vehicles, and others) are projected to reach approximately 17.96 million in 2023, with an annual growth rate of 28.6%. This accounts for 20% of the entire vehicle shipments (89.61 million), indicating a robust growth trend in both sales and market share for EVs. Notably, the mainland market is expected to dominate with a market share of about 47%, attributed to government subsidy policies and intense price competition among local car manufacturers. In a significant development, EV sales by BYD in Q4 of 2023 surpassed those of Tesla for the very first time, highlighting the increasing influence of mainland China in the global automobile industry.

Furthermore, the mainland Chinese government has implemented policies to ensure supply chain autonomy. In the "Stable Growth Work Plan for the Automobile Industry (2023~2024)" announced last September, Chinese automakers were specifically required to utilize a certain proportion of domestic chips and other components, suggesting that Taiwanese companies entering the EV supply chains are going to face a lot more challenges. The PCB industry in mainland China has accelerated its development by capitalizing on the EV market, presenting significant opportunities to challenge Taiwan’s leading position in the global PCB industry in the future. Facing a lack of support from the local automobile industry, Taiwan’s PCB industry undoubtedly needs to intensify efforts and make adjustments in technological innovation, market expansion, and collaboration with international supply chains to navigate the increasingly fierce competitive environment.

 

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