Race to the Future | Electric Vehicles, the Way Ahead

I’ve always loved cars. To me, they’re more than just a status symbol – a car speaks volumes about who we are. Before visiting China, I sought advice from Jeffrey Sachs, one of the world’s most influential economists, about my upcoming journey to the country. He pointed out something fascinating: green license plates. This means electric vehicles (EVs), and it’s a fiercely competitive sector. Sachs mentioned how, in China, cutting-edge enterprises are constantly advancing technologically. I was eager to find out for myself.

The southern city of Guangzhou is a hub for car manufacturing, and here I was about to meet China’s ‘Mr. Car’. I was thrilled to get behind the wheel of some Chinese EVs, but little did I know that the budget was much smaller than anticipated. They could only afford a tiny electric car, which was actually handy for navigating the congested, narrow streets. Still, I was excited to try out the more expensive, high-end EVs.

I was introduced to Sean, who walked me through the Chinese car market and presented a lineup of distinct vehicles. The first car I drove was the SSR, a supercar that costs around 160,000 USD after tax in China. For its carbon fiber construction and supercar performance, the price seemed like a bargain. The acceleration was incredible – 0 to 100 in under two seconds, it was like driving a rocket. As I sped past everything, it felt exhilarating, though to fully experience this car’s capabilities, a track would be necessary.

Next, I experienced China’s autonomous driving technology. With cameras and sensors on every side, the car practically drove itself, adapting to the road and ensuring a safe, smooth ride. For someone from the West, this level of technology was mind-boggling. Then I tried out a luxurious SUV with great sound and karaoke functions, before exploring another EV known for its battery swapping capability, a key feature in China’s EV market.

China’s car industry wasn’t always this advanced. In 1956, nearly half a century after Ford’s Model T, China produced its first automobile, a truck. But fast forward to today, and the EV industry is booming. As I drove around, I noticed all the green license plates, signaling the rapid growth of electric vehicles. Sean explained that competition among carmakers in China is cutthroat, with companies like Nio and Xpeng racing to innovate and outdo one another. This fierce market rivalry is pushing China’s EV industry forward at an astounding pace.

This competition is even challenging global automotive giants like Volkswagen, which has been in China for 40 years. The German automaker has helped set international manufacturing standards, but in the EV sector, it was slow to adapt. Now, Volkswagen is learning from Chinese carmakers and developing its own EV technology. Dr. Gabbard, who manages Volkswagen’s largest R&D center outside Germany, emphasized that the shift towards e-mobility and connected cars is reshaping partnerships, with a focus now on software and autonomous driving.

The EV transformation in China is remarkable. The country set a goal to have more than half its cars sold as EVs by 2035, but it reached this target 11 years early, by 2024. In fact, by 2035, 90% of cars on China’s roads could be electric. Companies like the Guangzhou Automotive Group (GAC) are leading the charge, with GAC recently surpassing the one million sales mark in electric vehicles, becoming the fastest-growing EV seller globally.

At GAC’s manufacturing facility, I witnessed firsthand the efficiency and precision of their state-of-the-art production line. Robots work in sync, building cars in a highly automated process, completing the assembly of an EV in just 16 hours. The entire operation exemplifies the “China speed” that has become a hallmark of the country’s industrial prowess.

Yet, some skeptics question whether China’s EV market might face overcapacity. However, the global demand for green products, especially in emerging economies, remains unmet, and China is uniquely positioned to supply it. Spending time in China, it feels like witnessing a revolution – a blend of innovation, technology, and efficiency, driving a new era of electric mobility not just within China, but across the world.

Driving through China’s electric vehicle (EV) landscape felt like stepping into the future of transportation. Cars here are not just modes of transport; they are expressions of the country’s rapid technological progress. Sean, my guide, had arranged a lineup of distinctive electric cars, each showcasing the incredible strides China has made in the EV market. The first car, the SSR, was a revelation. With its carbon fiber body and breathtaking performance, it rivaled the best supercars but at a fraction of the price. The thrill of accelerating from 0 to 100 kilometers per hour in under two seconds was electrifying. This was more than just a car—it was an emblem of how fast and far China’s automotive industry has come.

But what really caught my attention was the next vehicle, equipped with fully autonomous driving capabilities. Watching the car navigate the roads, guided by cameras, sensors, and LiDAR technology, was like witnessing something out of a science fiction movie. The car seemed to read the road, anticipate traffic, and adjust effortlessly, all while I sat back in awe. For someone from the West, where such technology is still in its infancy, the experience was nothing short of mind-blowing.

In fact, China’s entire EV industry is a reflection of this kind of innovation. What was once a country known for producing basic vehicles has now become a global leader in cutting-edge automotive technology. As Sean explained, much of this growth is driven by fierce competition. Chinese companies like Nio and Xpeng are constantly pushing the boundaries, spurred by an intense rivalry that fuels rapid innovation. It’s this competition, more than anything else, that is helping China’s EV industry pull ahead of global competitors.

Volkswagen, one of the world’s largest automakers, is an example of how this competition has forced even the biggest players to adapt. After decades of success in the Chinese market, the German giant found itself trailing behind local competitors in the EV space. Now, Volkswagen is learning from Chinese companies, integrating more advanced technologies and moving towards a future where software, connectivity, and autonomous driving take center stage. Dr. Gabbard, who leads Volkswagen’s operations in China, pointed out that partnerships have shifted from building factories to developing cutting-edge technology, a clear sign of where the automotive industry is headed.

As I toured Volkswagen’s R&D center in China, it became clear that the country is not just catching up to the West—it’s setting new standards. The speed at which China has transitioned to EVs is astonishing. In 2020, the government set a goal that by 2035, more than half of all cars sold would be electric. But China hit that target a full 11 years early, in 2024. If that wasn’t impressive enough, by 2035, it’s expected that 90% of cars on Chinese roads will be electric.

This rapid transformation is driven by both market demand and a cultural embrace of new technology. People in China are eager to adopt the latest innovations, from EVs to autonomous driving, and the government has been quick to support this shift with policies that encourage clean energy and sustainability. The result is an ecosystem where companies like Guangzhou Automotive Group (GAC) have been able to flourish. GAC, for instance, has become the fastest-growing EV seller in the world, thanks in part to its ability to produce high-quality, low-cost electric vehicles at a scale unmatched by most other automakers.

Visiting GAC’s manufacturing facility was like stepping into the future of automotive production. Robots, precision engineering, and digitalization have transformed car assembly into an almost choreographed performance. From the initial steel plate to the final vehicle assembly, the entire process takes just 16 hours. What struck me most was the sheer efficiency—every movement, every action, was perfectly timed and optimized. It’s a level of industrial sophistication that is hard to imagine outside of China.

Of course, with this level of growth, some have raised concerns about overcapacity. Could China’s rapid expansion in the EV market lead to more cars than the world needs? Sean’s response was clear: while some markets might be saturated, the global demand for green products, especially in developing economies, is still far from being met. China’s competitive advantage in producing affordable, high-quality EVs positions it perfectly to meet this growing demand, not just domestically but internationally as well.

Reflecting on my time here, it’s impossible not to be impressed by the scale and speed of China’s EV revolution. The marriage of efficiency, innovation, and sheer ambition has transformed the country into a global leader in electric mobility. While the rest of the world is still catching up, China is already racing ahead, its factories and cities buzzing with the energy of a future where electric cars dominate the roads. What I’ve seen here is more than just a glimpse of that future—it’s a full-on immersion in the reality of what’s coming, not just for China but for the entire world.