The Chinese automotive market is currently torn by various forces.

Today, the government plans to mandate more and more all-electric and plug-in hybrid models to the market (mostly smaller cars), while at the same time, the consumer demand is trending to larger platforms.

BYD Tang

BYD Tang

According to the StarTribune, SUVs holds around a 40% of market share, a number which has recently increased by 21%.

So, it seems that the Chinese consumer has fallen in love with the SUV.  As a result, the easiest route to now increase plug-in sales would naturally be the introduction of many more decent SUV plug-ins offerings.

The recent debut of the NIO ES8 could be one such offering.

With Beijing's proposal to require plug-in vehicles to stand for at least 8% of each brand's total sales from 2018, manufacturers are running scared.

"The pressure for electrification in China is an added headache for automakers at a time when sales growth is slowing and competition heating up in a market they are counting on to drive global revenue."

Quotas would grew later to 10% in 2019 and 12% in 2020, but as of today there is a fairly big chance that the government will ease requirements.

source: StarTribune

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