In recent times it has been noticed that the electric vehicle industry in China is facing a downfall as compared to other major auto markets, as sales of their vehicles have gone down drastically.

During the second quarter of 2012 only 235 vehicles were sold in the world’s largest auto market, which marks a 31 percent drop from 343 units sold in first quarter. This is the sharpest decline in the first quarter among the world’s major auto markets.

The Chinese market has been showing poor performance, which is in total contrast to the United States, where 7,931 vehicles were sold during the same period. US sales have marked a 28 percent jump as compared to the first quarter. Axel Krieger, the leader of McKinsey’s China Auto Hub explained that the decline in China was a result of the shortage in battery supplies, underdeveloped infrastructure and low recognition among customers. McKinsey defines electric cars strictly as battery vehicles.

Krieger also said that the result in sales would not be affected if hybrid electric vehicles were taken into account. Larry Wang, a partner at McKinsey explained that sales were affected partly due to fewer supporting policies, similar to those seen during the Beijing Olympics and Shanghai World Expo.


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