China EV Charging Points Soar 56% YoY in 2021; 42% CAGR Seen for 2022-2026

Hong Kong, Beijing, London, New Delhi, Taipei, Boston, Toronto, Seoul – August 4, 2022

China’s electric vehicle (EV) charging points increased 56% YoY in 2021, according to Counterpoint Research’s latest China Electric Vehicle and Charging Points Tracker. Since ensuring economic stability is China’s top priority in 2022, accelerating infrastructure investment is expected to boost the growth of charging points. The number of charging points in China is expected to increase 58% YoY in 2022.

China’s EV Charging Points, 2016-2022E

Starting from the second half of 2020, the sales volume of new energy vehicles (NEVs) in China has increased rapidly thanks to government incentives to raise NEV sales to 20% of all car sales by 2025. In fact, the 20% target was achieved earlier than planned. In 2021, China’s NEV sales rose 68% YoY, with the vehicle-to-charging point ratio reaching around 3, which means there was one charging point for every three NEVs. Commenting on the setting up of EV charging points in China, Senior Analyst Ivan Lam said, “Refuelling or recharging is a crucial subject for the NEV industry’s development. Internal combustion engine (ICE) vehicles have a well-established refuelling network and take just a few minutes to refuel. Besides, one can carry a small barrel of gasoline along when going on a long drive. But the EV takes longer to charge – one to two hours even when using a supercharger. Given China’s current policy, the charging point market’s size has a high potential to reach nearly 1:1 vehicle-to-charging point ratio.”

Public Charging Point Volume Share by Operator Ownership Type

Currently, third-party charging point operators are the market mainstream, making up 75% of public charging points. State-owned companies account for about 20% of public charging points and vehicle companies take the rest. Commenting on the current China charging point market, Research Analyst Alicia Gong said, “At the moment, China’s charging point market is still very fragmented. Many players have jumped into this industry with the expectation of future growth. The market growth will be expedited with the state-owned enterprises’ penetration.”


Public Charging Point Volume Share by Operator

In 2021, Starcharge, TELD and State Grid were the top three operators in China, respectively. The top three players together grabbed a 62% share. Commenting on the current competitive landscape, Lam said, “Heavy investment is involved in the charging point business. It requires land (rented or purchased), station construction, charging solution integration, maintenance, and electricity connection. Although there are some incentives available to support this industry, the upfront investment is unavoidable and the payback period runs into years. The backup funding for the leading players has to be solid and from a long-term perspective. We observed that some players which were market leaders a few years back are no longer among the toppers.”

China wants the NEV industry to achieve the “Two Carbon” goal, with subsidies for almost every related sector. According to Counterpoint Research’s China NEV Tracker, China’s EV charging point market is expected to increase at a CAGR of 42% from 2022 to 2026 due to a massive increase in domestic NEV sales.


Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Ivan Lam

Alicia Gong

Soumen Mandal

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China Cloud on Tesla’s Q2 2022 Numbers; Fundamentals Remain Strong

  • Tesla sold more than 254,000 vehicles in Q2 2022, an increase of 27% YoY, which was below general expectations.
  • This was the first time since the COVID-19-hit 2020 that the automaker experienced a sequential decline in sales.

After achieving phenomenal growth in Q1 2022, Tesla’s global sales during Q2 2022 grew by just 27% YoY to over 254,000 units, falling short of expectations. In QoQ terms, the sales fell 18%. Business during Q2 2022 was affected by COIVD-19-related shutdowns in China. Production units in and around Shanghai were closed temporarily due to strict lockdown measures. As a result, Tesla sold just 89,000 cars across China during Q2 2022. Cumulative sales in China during April and May fell by more than 66% YoY. The situation improved only after the production returned to full capacity in June.

It was expected that the Berlin Gigafactory would boost Tesla’s sales in Europe after becoming operational in March 2022. But the production was lower than expected. A few rumored reasons for the low production are litigation with the German government and a shortage of human resources. The Berlin factory is currently focusing on the production and deliveries of the Model Y across Europe.

Tesla bets on in-house battery cell manufacturing

Tesla delivered its first batch of cars equipped with the in-house 4680 battery cells and structural battery packs during this quarter. These cells use a little amount of lithium. With lithium prices soaring worldwide, 4680 cells will help lower the vehicle manufacturing cost. The cells will power the Model Ys coming out of the Berlin Gigafactory. However, Tesla will shut the Berlin Gigafactory for a couple of weeks during autumn to upgrade the production system of 4680 cells.

Other businesses see 33% YoY growth

Although Tesla’s vehicle sales in Q2 2022 failed to meet expectations, its other businesses like energy deployment and storage, charging and other services grew more than its vehicle segment. Energy deployment, energy storage, charging and other services grew by 33% YoY. Tesla deployed 106 MW of solar panels and 1.13 GWh of energy storage during Q2 2022. It installed 247 new superchargers worldwide, bringing its global supercharger number to 3,971 units with more than 36,000 connectors.

Tesla converts 75% of its Bitcoins to fiat currency

During Q2 2022, Tesla also converted 75% of its Bitcoins to fiat currency. This was done to have a better cash position against the backdrop of COIVD-19-related uncertainties. This conversion reduced Tesla’s digital assets to $218 million and added $936 million in cash to Tesla’s balance sheet.


Tesla Revenue by Segment, Q2 2021-Q2 2022_Counterpoint
Source: Tesla Q2 2022 Financials and Counterpoint Analysis

Q2 2022 Financial Results

  • During Q2 2022, Tesla sold more than 254,000 vehicles at 27% YoY growth. The Model 3 and Model Y comprised more than 93% of these sales.
  • Revenue from vehicle sales stood at $14.6 billion. Total revenue grew by almost 42% YoY, with the COVID-19 impact on China reducing the QoQ number by about 10%. Revenue generated from automotive credit also declined slightly compared to Q2 2021.
  • The company’s other services, like energy storage, charging and insurance, contributed to 14% of its total revenue. Revenue from insurance and vehicle services saw a 54.2% YoY growth, while the energy storage and charging segment grew by just 8% YoY. The energy storage business was expected to perform better but was restricted due to semiconductor-related supply issues.
  • Tesla’s gross profit during Q2 2022 reached $4.2 billion and stood at 25%. Though the shutdown in China adversely affected the business, increase in US deliveries along with the higher average vehicle price helped Tesla earn 47% more profit YoY.
  • R&D costs grew 16% YoY during Q2 2022. Tesla is trying to achieve complete autonomy by 2024 by perfecting Full-Self Driving (FSD) software. But the resignation of Andrej Karpathy, the director of artificial intelligence and autopilot system at Tesla, in mid-July is likely to stall the progress of this project, which is expected to get delayed by a year.
Tesla Production and Deliveries, Q2 2021-Q2 2022_Counterpoint
Source: Tesla Q2 2022 Financials and Counterpoint Analysis

Market Outlook

Despite experiencing a dip during the second quarter of 2022, Tesla’s future outlook seems strong and promising with strong fundamentals. Tesla has secured the supply of LFP batteries for its Shanghai Gigafactory by signing a deal with BYD. Transitioning to LFP batteries and 4680 battery cells will help Tesla reduce vehicle manufacturing costs. Moreover, Tesla expects the Berlin Gigafactory production capacity to cross 100,000 units by the end of 2022. With all these developments, Tesla is expected to cross more than 1.2 million units of vehicle deliveries by the end of 2022.

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Definite Fault Lines in China’s 2018 Car Sales: A Reason for Concern?

China, the world’s largest and fastest growing car market, is showing signs of losing steam; it recorded negative growth for the first time in 20 years.

For the sixth straight month in a row, China car sales fell. The rate of decline was 13% in December versus the year earlier, bringing the full year 2018 sales to 28.1 million. This was a decline of 2.8% from 2017; at the outset of 2018, the China automotive market was projected to grow by 3%. While the first half of the year started off steadily, the story began to unravel soon after. Signs of a moderating economy are apparent, with fault lines appearing from a combined impact of government credit-tightening measures, and the anxiety of a prolonged trade war with the US.

What Ails China Automotive Sales?

A number of concurrent and compounding factors pulled automotive sales down in 2018. Significant among them are:

Vehicle Purchase Tax Changes:  In 2015, the government introduced policy incentives to stimulate car purchases. From October 2015 to Dec 2016, vehicle purchase tax for low-emission cars (≤1.6L engines) was lowered from 10% to 5%, stimulating an aggressive YoY growth of 15% in passenger car sales during the period.  In 2017, vehicle purchase tax was raised to 7.5%, resulting in car sales growth moderating to 1.4%. In the beginning of 2018, addressing growing environmental concerns, the purchase tax was moved back to 10%, slowing sales noticeably. Towards the end of the year, most car buyers considered postponing purchases, in anticipation of tax cuts being reinstated in early 2019, to jump-start the industry.

US-China Trade Tension:  In July, import duty on U.S. vehicles was raised by China to 40%, a result of the two countries raising tariffs on $50 billion worth of trade goods from each other. The initial round of tariffs has dramatically impacted the automobile industry, with uncertainty to China’s manufacturers and traders on their export businesses. Ford was the worst hit among global car makers in China last year, with its sales shrinking 37% percent. Tesla dropped prices of its Model X and Model S models in China between 12 and 26%, absorbing a significant part of the tariff, to ensure their cars remain competitive, with sales of locally produced new-energy vehicles (NEVs) rising fast.

Currently, China has eased-back, announcing a suspension of additional tariffs on US vehicles and auto parts for three months, starting January 1, 2019. However, should tensions flare-up again, China can be expected to hit back at US automotive manufacturers, with another round of tariffs.

Increasing Household Debt Ratio: Based on research by Renmin University, the average household leverage ratio in China (household debt/household income) reached 111% at the end of 2017, higher than the U.S., which was at 108%. The ratio is significantly higher for tier one and tier two cities, with relatively higher property prices, constraining discretionary spending, especially for car purchasing.

Moderating Economy: The Chinese economy is being estimated to have grown around 6.6% in 2018 – the weakest since 1990. Expectations are that a target between 6 to 6.5% is being planned for 2019. The slowdown may have a number of underlying reasons including the Yuan weakening, Chinese stocks losing value, consumers agonizing over China’s deepening trade dispute with the U.S, tightening of consumer financing and a flattening demand for smartphones.

With decreased household incomes, especially in tier three and four towns, consumers are holding back non-essential purchasing, influenced by a conservative outlook. These consumers have been a primary target for budget cars and have been the contributors for market growth in recent years.

2019 Outlook

China Association of Automobile Manufacturers (CAAM) expects weakness to persist and has forecast flat sales of 28.1 million vehicles for 2019, while other government and industry bodies see 0% to 2% growth. China is already in dialogue aiming to resolve trade tensions with the US, confirming suspending reciprocal tariff increase temporarily, on automobiles and parts imported from America.

In terms of stimulus interventions, tax breaks have been the most popular mechanism used in the past, especially for new energy vehicles (NEV), which also contribute to a greener economy. Encouragingly, NEV sales jumped 61.7 percent in 2018, to 1.3 million units for the year.

Chinese authorities have also been trying to rein-in the country’s rising debt, with China’s state-owned banks told in April to stop lending to local governments. As the economy shows sign of softening, China appears to be using investments to boost the economy again. The National Development and Reform Commission, a top Chinese economic regulator, has already announced promoting infrastructure investments earlier last year, with specific reference to bullet trains and public transportation.

China’s central bank has also stated it will reduce the ratio of cash to loans that domestic lenders need to hold on their balance sheets, a move that is expected to add $220 billion to the nation’s financial system, as officials attempt to re-ignite growth.

NEVs to the Rescue?

A positive signal for the automobile market in China is sales of NEVs. While traditional passenger cars are seeing a continuous decline, sales of NEVs in 2018 reached close to 1.3 million from January to November 2018, up nearly 62% compared to last year. NEVs are expected to emerge as the new upgrade catalyst for the market.  CAAM sees NEV sales hitting 1.6 million this year. Electric-car sales, accounting for 4% of 2018 total, are expected to be on track to hit the government’s 2025 projection of 20%, especially with regulations previously announced, mandating all automakers to start producing EVs in 2019. Tesla has already broken ground for a new factory in Shanghai,  aiming to start production by the end of the year, while GM, Volkswagen, and others are readying a flurry of EV launches.

Growth of EVs in China is attributed to supportive government policy, including public procurement programs, financial incentives, subsidies to EVs’ purchase prices, tighter fuel-economy standards, stringent emission regulations, low/zero emission vehicle mandates and a variety of local measures, i.e. restrictions on vehicle usage based on emission performance.

However, despite these governmental interventions and growing absolute numbers, EV penetration remains low. Considerable work still needs to be done, i.e. technological upgrades for battery range, further investments in accessible charging infrastructure and vehicle development for products that Chinese customers really want, before EV’s can compensate for the shortfalls in conventional fuel vehicles.


The Chinese auto market is possibly nearing maturity, with penetration of automobiles in the country’s major tier one, two and three cities reaching a point of inflection. The year’s weaker auto sales may also just be a result of a combination of adverse economic factors. In any case, China’s industry’s performance in 2018 is giving global automakers and industry observers pause for reflection, and concern.

Analyst Contacts:

Vinay Piparsania



James Yan



Rick Cui


Flora Tang



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