Published: 00:31, February 14, 2025
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North America, Europe’s EV ecosystem falls behind China’s
By Paul Stapleton

In China, electric vehicles (EVs) now represent over half of all new car purchases — a remarkable achievement, considering that just six years ago, EVs accounted for only around 1 percent of new car sales. In contrast, Europe and North America are still far behind. In Europe, EVs make up less than a quarter of new car sales; in the United States, the figure is around 9 percent. While EV sales are growing in both regions, this year’s growth rate has plateaued, signaling a deeper set of challenges to widespread adoption.

The stark difference in EV sales between China and the West is often attributed to economics. Most EVs in China are much cheaper than in the US or Europe. For example, BYD’s Seagull, starting at less than 70,000 yuan ($9,580), is three times cheaper than the least expensive EV in North America. Meanwhile, in the US, the average price of an EV is several thousand dollars higher than that of a gasoline-powered car.

Because of high tariffs on Chinese EVs, intended to protect domestic automakers in Europe and North America, it’s unlikely that companies like BYD or SAIC Motor will enter these markets anytime soon. Price sensitivity is thus a key reason for the slower shift to EVs in the West. However, focusing solely on economics oversimplifies the issue. The gap in EV adoption between China and the West is more complex than it first appears.

These challenges are not unique to Canada. Similar concerns about charging infrastructure and resale value are holding back EV adoption in many parts of the US and Europe. Until these issues are addressed — through expanded charging networks, better resale markets, and more-affordable EV options — North America and Europe will struggle to match the level of adoption seen in China

In Canada, where EVs now account for about 15 percent of new vehicle registrations, the reluctance to fully embrace EVs is palpable. While price is undoubtedly a factor, other challenges are just as significant. Consider the case of a friend who lives near me in a semi-detached house in Toronto without his own garage — a common situation in the city. He often parks on the street, but rarely gets a spot in front of his home. Worse, because of local parking regulations, he would need to run a charging cable across the street to charge his car. In his case, home charging is not feasible.

A few years ago, the city of Toronto launched an initiative to install hundreds of EV chargers on residential streets. I closely followed the progress of a planned installation near my apartment, where no chargers existed at the time. Ultimately, however, the project was scrapped. Neighborhood groups raised concerns that the chargers would increase traffic in their residential areas, and the city caved in to these objections. NIMBYism (Not In My Backyard) won out.

This leaves people like my friend with limited options. To charge their EVs, they must either locate one of the few public chargers on the street or pay to park in a lot that also offers EV charging — a double cost, both for parking and electricity. This setup is far from ideal.

These concerns are largely mitigated in China. China has roughly three times as many EV chargers as Europe and North America combined. The country’s charging infrastructure is far more abundant, making it much easier for Chinese consumers to adopt EVs.

In my situation, I now live in one of the rare apartment buildings in Toronto that has EV chargers. However, there are only two chargers for over 300 households. When I bought my EV a couple of years ago, only one other resident had an EV. Amazingly, no other EV owner has moved in since that time, so I’ve always had unencumbered access to a charger. That’s the good news.

The bad news, however, is that the low uptake of EVs in my building — and by extension, in Canada — has contributed to their poor resale value. When I checked recently, I found that my 2-year-old EV would fetch barely a third of its original price if I sold it today.

This situation points to another critical issue: the lack of consumer confidence in EVs. In addition to high upfront costs and limited charging infrastructure, the fear of rapid depreciation discourages many from buying EVs, especially when resale values are uncertain.

These challenges are not unique to Canada. Similar concerns about charging infrastructure and resale value are holding back EV adoption in many parts of the US and Europe. Until these issues are addressed — through expanded charging networks, better resale markets, and more-affordable EV options — North America and Europe will struggle to match the level of adoption seen in China.

The author, a retired professor, worked at several universities in Asia for 30 years.

The views do not necessarily reflect those of China Daily.