A year ago, Chinese internet users were outraged that an EV would cost more than a petrol car.
But this month, the price of an EV has plummeted to as low as $2,300 (US$1,979), making China’s electric car market the most competitive in the world.
The EV market has become an even more crowded and volatile market, as manufacturers and dealerships have started selling EVs in more places.
In March, China became the first country to sell a Tesla Model S, the world’s most expensive electric car.
China also became the world leader in EV adoption, with almost 1.5 million EVs sold in 2016.
But China’s EV market is not the only one.
In 2016, the United States surpassed China’s market share in the EV market to the tune of around 35,000 EVs sold, according to Bloomberg.
As EVs become more widely available, they are also becoming cheaper.
EV prices in China have dropped in recent years.
As of January 2018, a $4,500 Tesla Model 3 costs $1,000 more than the equivalent gasoline car in the United Kingdom.
Meanwhile, the average US gas price is currently $3.70 per gallon.
That means if a Model S costs $4.75 in the US, you’d be paying $3,858 in China.
This means EVs in China are becoming more affordable, which is good news for American companies that have struggled to compete with Chinese rivals.
“We are seeing a very healthy EV market,” said James Gentry, the director of market analysis at EVSource, an industry publication.
“I think this is going to help us to expand our presence in China.”
China has long been the world capital of EVs, with a vast number of electric car manufacturers in the country.
But in recent months, there has been a noticeable rise in the number of EVs in the Chinese market.
While the number in China was around 1.4 million in 2015, in 2016, there were around 2.3 million EVs in operation.
The US, with an estimated 10,000 electric car dealerships and 1,300 electric vehicle brands, was the third largest market.
“China has a very robust market, and a very vibrant market,” Gentry said.
“That is a market that’s very competitive, and you can’t compete on price.”
The rapid increase in EV sales in China is a sign that EV manufacturers are starting to invest in new technologies to compete on pricing and quality.
China’s state-owned EV manufacturer BYD is one of the biggest names in the field, and in April, it introduced a new, low-cost EV called the G-Model EV.
The new vehicle will come with a battery that’s 40 percent cheaper than the Model S and Model X. BYD also plans to launch a range of other EVs in 2019, including a high-end sedan that will be sold in high-cost cities.
“The G-model EV is a product that’s not just about price, it’s about quality,” Giedd said.
Tesla is another company that is seeing significant growth in China, with its Model 3 sedan coming to market in 2021.
While Model 3 sales are currently limited to China, Tesla expects to sell between 100,000 and 150,000 vehicles in China in 2020.
As more EV brands enter the Chinese EV market, automakers are also focusing on the domestic market.
Nissan is already planning to launch two EVs in 2018 in the U.S. and Canada: a low-priced sedan called the Nissan LEAF and a premium crossover called the LEAF Hybrid.
Both the LEAV and the LEAGUE are electric vehicles that will cost $35,000 (US $26,000) and $35 and $60, respectively.
As EV adoption continues to grow in China and the United State, automakers will also be expanding production in other countries to ensure that they can compete in the market.
Tesla has partnered with German automaker Daimler to create a factory in China for its Model X SUV.
In December, the company announced that it will build its first production facility in Mexico, which will create around 5,000 jobs.
And Tesla has also been expanding its distribution efforts in the Philippines, Vietnam, Thailand, and Brazil.
In China, the Chinese government has also taken a hard line against EV manufacturing, banning the importation of certain components.
“You can’t get it from China,” said Michael Gopnik, the president of EVSource.
“In the future, if you import a component, you can expect a $100,000 fine.”
The Chinese government also requires carmakers to make sure that their products are only sold in the mainland.
That includes certain features like the ABS and traction control, which Tesla has already removed from its Model S vehicles.
However, that hasn’t stopped Tesla from selling its vehicles in the rest of the world, including in Mexico.