Assessment of leading new energy vehicle city markets in China and policy lessons

In 2020, the top 30 city markets for new energy vehicle (NEVs) in China were home to nearly 70% of all new NEV registrations in the country. Using data covering the period from 2015 to 2020, this report explores the successful experiences from leading NEV cities in China and is intended as a guide for other similar cities, both within China and around the world. Wherever illuminating, the study also compares the NEV market characteristics by China’s unofficial-but-popular city tier system. For new energy passenger cars, results show that while Tier 1 and New Tier 1 cities played a pivotal role in driving the market in both 2015 and 2020, growth in Tier 2-5 cities had gained traction by 2020. Brand diversity also increased dramatically and in 2020, manufacturers sold to more markets beyond their home markets than they had in 2015. This suggests that local market protectionism has mostly been rectified.