In 2001, the Chinese government resolved to prioritize the development of electric vehicles and formulated a long-term strategy that would ultimately propel China to the forefront of the automotive industry of the future.
The government focused on funding emerging EV startups, offering loans and partnership opportunities to established manufacturers, financing R&D initiatives, rolling out consumer purchase subsidies and tax breaks, and building the infrastructure required to underpin this electric revolution.
Over a 15-year period, the state poured more than USD 230 billion (approximately AUD 328 billion) into this fledgling industry, cementing China's leading position and driving the nation's comprehensive shift toward electrified mobility.
Bill Russo, a global automotive industry analyst who has lived in China for more than 20 years, states that China won the EV race by achieving full self-sufficiency across the supply chain.
"China sought to resolve multiple challenges simultaneously: energy security, environmental pollution concerns, and industrial competitiveness," he said.
"To allow this radically different path to take root, China invested in infrastructure, offered tax incentives, and provided subsidies in the early stages, before gradually phasing them out as consumers embraced the new technology."
China's ambitious electric vehicle blueprint has succeeded partly because it produces affordable cars fitted with premium luxury features once exclusive to high-end brands.
Ethan Robertson, a China-based automotive reviewer, notes that a standard-spec electric vehicle made in China now typically comes with an in-car screen, refrigerator, zero-gravity massage seats (seats that can recline to an almost flat position), surround sound audio systems, and most crucially, full digital connectivity.
In China, an EV equipped with all these features costs roughly 30,000 Australian dollars.
BYD, China's homegrown automaker and the world's largest EV brand, sells an electric model priced below 15,000 Australian dollars, ranking among China's best-selling electric vehicles.
Nearly 55% of all new cars sold in China last year were electric vehicles.
According to Robertson, China currently holds the leading position when it comes to the overall value proposition balancing technology, features and pricing. Its advantages in technology, specifications and cost will be difficult for many global competitors to match.