In the context of China’s position as the world’s largest electric vehicle (EV) market, the rapid expansion of the country’s electric vehicle charger industry holds immense potential for foreign direct investment (FDI).
This presents significant opportunities for foreign companies to actively engage in the development, manufacturing, and operation of charging equipment, while also contributing to the advancement of charging services and enhancing the overall user experience in China’s dynamic EV market. Dual Motor Ev
This article aims to provide a comprehensive overview of China’s EV industry, highlighting the national and local policies that support the development of EV chargers. Additionally, it will outline the potential investment prospects available to foreign enterprises seeking to enter this thriving sector.
In recent years, the global new energy vehicle market has experienced significant growth, leading to an increased demand for charging infrastructure.
Within this segment, China has observed a rapid expansion in its EV charger sector, propelled by the widespread adoption of electric vehicles throughout the country.
This surge in demand for charging stations reflects the transition towards cleaner and more sustainable transportation solutions.
The electric vehicle charging station industry chain encompasses a diverse range of stakeholders.
At the upstream level, manufacturers specialize in producing essential equipment for charging station construction, including shells, pedestals, cables, and other critical components.
The midstream segment involves construction and operation companies responsible for building and managing the charging stations.
Lastly, the downstream sector comprises service providers offering location services, reservation and payment functionalities, operation management platforms, and comprehensive solutions. These service providers play a vital role in coordinating the needs of stakeholders across the chain, facilitating seamless integration and delivering comprehensive operational solutions.
It is worth noting that the public charging station operator landscape in China exhibits a notable level of concentration. According to the date from the China Electric Vehicle Charging Infrastructure Promotion Alliance (EVCIPA), as of December 2022, the top 15 charging operation companies in terms of the number of charging stations operated nationwide are as follows: TELD, StarCharge, YKC, State Grid, Xiaojuchongdian, Evking ), ShenZhen Carenergy Net, Southern Power Grid, Wancheng Wanchong, Hooenergy, EV Power, Eichong, SAIC Motor (SAIC Anyue), Potevio (China Putian), and Winlands (伟blue fast charge). These 15 operators account for 93.8 percent of the total number of charging stations, while the remaining operators make up the remaining 6.2 percent.
According to data released by the EVCIPA, the construction scale of EV charging stations in China has experienced substantial growth from 2018 to 2023. As of the end of 2022, the total number of charging infrastructure in China reached 5.21 million units, reflecting a significant year-on-year increase of nearly 100 percent. This includes approximately 650,000 units of public charging infrastructure, resulting in a cumulative total of 1.8 million units, as well as around 1.9 million units of private charging infrastructure, reaching a cumulative total of over 3.4 million units.
By 2023, the projected number of EV chargers is expected to reach 9.58 million units, representing an impressive growth rate of approximately 84 percent. This significant upward trend underscores the immense potential and opportunities within the EV charger industry.
The “Guidelines for the Development of Electric Vehicle Charging Infrastructure” issued in 2015 set forth ambitious targets for the construction of 4.8 million charging stations by 2020, effectively meeting the charging demands of 5 million new energy vehicles. This plan aimed to establish 500,000 public charging stations and 4.3 million private charging stations, ensuring a balanced vehicle-to-charger ratio of 1:1.
However, the progress in charging network construction has fallen short of the planned targets. As of the end of 2022, China had a total of 13.1 million new energy vehicles, while the number of charging stations stood at 5.21 million, resulting in a nationwide vehicle-to-charger ratio of 2.5:1. This highlights a considerable gap when compared to the targeted 1:1 ratio.
Clearly, it is evident that to achieve the national goals for new energy vehicles, the development of charging infrastructure will be a key focus in the future. The electric vehicle charging industry holds immense growth potential as the demand for charging stations continues to rise.
With a strategic focus on building a comprehensive charging infrastructure, China has made significant investments and implemented supportive policies to foster the growth of its EV charger industry.
Prioritizing the installation of public charging facilities in commercial buildings, transportation hubs, and service areas along highways.
Conducting pilot demonstrations of innovative charging and battery swapping stations that integrate solar power generation, energy storage, and charging.
In the future, under the positive influence of the dual carbon goals, an increasing number of charging operators, load integrators, and other third-party market participants will engage in EV energy storage services to facilitate the transition to clean energy systems.
Presently, many provincial and municipal governments have set out specific development goals for EV charging stations to meet the growing demand for electric vehicle charging. They are overseeing the continuous improvement in the safety, intelligence, and connectivity technology levels of charging facilities. This effort aims to drive forward the development of the electric vehicle industry, promote consumer upgrades, and expand the upstream, midstream, and downstream industries in the charging industry value chain.
The EVCIPA estimates that in 2023, China will add 3.4 million onboard chargers, bringing the total number of onboard chargers to 6.812 million. An onboard charger converts alternating current (AC) power from external sources, like residential outlets, into direct current (DC) power, which is then utilized to charge the battery pack of the vehicle.
Further, an impressive 975,000 public chargers are expected to be installed, resulting in a total of 2.772 million public chargers.
In 2023, China will install 60,000 new public charging stations, resulting in a total of 171,000 public charging stations established across the country.
According to the latest Catalogue of Encouraged Industries for Foreign Investment (2022 Version), foreign investors are encouraged to invest in multiple sectors related to EV chargers, such as:
China’s EV charger sector offers promising opportunities for FDI in the following niche segments:
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
Dezan Shira & Associates has offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, Dubai (UAE), and Russia, in addition to our trade research facilities along the Belt & Road Initiative. We also have partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh.
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