China's new-energy sector draws interest of global investors

Tesla has reinforced its investment in China's burgeoning new-energy sector by breaking ground on a mega factory in Shanghai for energy-storage batteries, building on the success of its gigafactory, which delivered 947,000 vehicles in 2023. Following Tesla's lead, BMW and Volkswagen have also announced substantial investments in their Chinese operations, signaling strong confidence in China's market potential. BMW is investing 20 billion yuan ($2.8 billion) in its Shenyang base for its Neue Klasse EV lineup, while Volkswagen is committing 2.5 billion euros ($2.68 billion) to expand its innovation hub in Hefei and accelerate the development of smart electric vehicles with Xpeng.

China's prominence in the global new-energy vehicle (NEV) market is further highlighted by robust sales and production figures. In 2023, China produced and sold over 9.5 million NEVs, a significant year-on-year increase of around 36 percent. Major international carmakers, including BMW and Volkswagen, have seen substantial growth in their NEV sales in China, reflecting the country's comprehensive industrial and supply chains, technological strength, and expansive consumer market. Experts, such as Fudan University's Sun Lijian and Liaoning University of Technology's Li Gang, attribute China's new-energy sector success to its supportive policies for addressing global warming and energy shortages, fostering a conducive environment for industry growth.