China to produce nearly half of new electric cars by 2020

Chinese automakers are set to produce 49 of 103 new electric models to be launched globally by 2020.

This is in line with plans to switch to battery power from oil, according to US consulting firm AlixPartners.

According to the firm, China is also aiming to have nearly two-thirds of the world’s manufacturing capacity for lithium-ion batteries by 2021, and is investing to support current sales of domestic-brand electric vehicles.

Currently, Chinese automakers account for 96 per cent of electric vehicles sold in the country, and have sold around 350,000 electric vehicles in China last year.

By 2025, electric vehicle batteries should be close to even with internal combustion engines in terms of production costs, AlixPartners forecast. Lower battery costs could help boost consumer acceptance.