KAPSARC – Why Might Some Chinese Battery Electric Vehicle Owners Choose Not to Repurchase Another?

Battery electric vehicles (BEVs) are considered a crucial solution for reducing greenhouse gas emissions in the transportation sector. China leads the global BEV market with a significant share of worldwide sales. However, a study by McKinsey & Company suggests that a notable percentage of plug-in electric vehicle owners, including BEV owners, may opt to switch back to internal combustion engine vehicles. This trend raises concerns about achieving ambitious BEV sales targets and future emission goals in the road transport sector. Another study by Bloomberg Intelligence also indicates a potential shift back to ICEVs or hybrid electric vehicles among new-energy vehicle (NEV) owners in China. Understanding the reasons behind why some BEV owners choose not to repurchase another BEV is crucial for policymakers and industry stakeholders to address in order to promote sustainable transportation choices and meet emission reduction targets.