Shenzhen, which used to give up to 100 million won in electric vehicle subsidies, now...

'Xin Shidai Zou Zai Qianlie Xin Zhengcheng Yong Dang Jianbing' (We must walk ahead of the new era. Courageously become the new vanguard)

The phrase "We must walk ahead of the new era. Let us bravely become the new vanguard" is prominently displayed at the Shenzhen Bay Sports Stadium in Nanshan District, Shenzhen, China. Nanshan District is home to the headquarters of China's innovative companies such as Huawei, Tencent, and DJI. The light blue electric taxi passing on the road was produced by BYD. Photo by Jeong Donghoon

Shenzhen, China, home to headquarters of leading technology companies such as BYD, Huawei, Tencent, and DJI. This phrase is displayed at the Shenzhen Bay Sports Stadium in Nanshan District, where the city’s most technologically advanced companies are concentrated. It reflects the Chinese government's determination to position Shenzhen as the center of technological innovation and foster its growth. On Shenzhen’s roads, countless electric taxis from BYD, China’s largest electric vehicle and battery company, were seen. Shenzhen, one of the cities with the highest electric vehicle penetration rates in the world, proudly positions itself as the 'vanguard' of the electric vehicle and battery industry.

Over 40,000 Electric Buses and Taxis, Shenzhen Becomes the 'Vanguard' of Electric Vehicles

Shenzhen is an 'electric-powered' city. Not only electric vehicles but also electric scooters and electric bicycles?various electric-powered modes of transportation?flood the city. By around 2018, all buses and taxis used for public transportation had switched to electric power. Currently, there are 19,000 electric buses and over 24,000 electric taxis operating in Shenzhen. Approximately 80,000 out of 300,000 commercial vehicles are electric. The number of privately owned electric vehicles in Shenzhen is expected to increase from about 250,000 in 2020 to 750,000 by 2025. Considering the total registered vehicles number around 3.53 million, the proportion of electric vehicles (including electric buses, taxis, and commercial vehicles) is expected to exceed 10%. The new electric vehicle penetration rate (as of 2021) was about 39%, with 76,000 out of 194,000 newly registered vehicles being electric. The average new electric vehicle penetration rate in China is around 30%, making Shenzhen one of the cities with the highest penetration rates (China Society of Automotive Engineers 2022).

In fact, the electric vehicle penetration felt even higher when moving around Shenzhen city. Due to the near-silent operation of electric vehicles, including the absence of engine noise, it was difficult to notice when a vehicle was approaching from behind. Small personal mobility devices like electric scooters frequently crossed sidewalks and roads, nearly colliding with the reporter several times. This traffic environment sometimes leads to chaotic scenes with frequent use of high beams and honking. A vendor at Huaqiangbei Electronics Market, a dense retail area for IT and electronic products, said, "Even the mobility devices used by delivery riders are all electric-powered, so pollution and noise are low," but also added, "While Shenzhen residents are accustomed to quietly running motorcycles, foreigners always need to be cautious when stepping onto the street."

Numerous electric vehicles (green license plates) are driving near Shenzhen International Airport. Photo by Jeong Dong-hoon

Charging infrastructure is also rapidly expanding. Shenzhen has over 5,000 electric vehicle charging stations. These stations are equipped with 83,000 chargers, of which about 30,000 are fast chargers and approximately 53,000 are slow chargers. Since public sector investment was prioritized, most fast chargers are dedicated to buses and taxis. Around 60,000 chargers are for private electric vehicles, installed in apartment complexes, office buildings, and commercial parking lots. Kim Taeyong, Deputy Director of the KOTRA Shenzhen Trade Center, said, "Electric vehicle and electric mobility charging facilities in Shenzhen are connected like capillaries throughout the city," adding, "Electric scooters and electric bicycles can also be charged at free charging stations installed near residential areas." In China, electric charging stations were mainly operated by state-owned enterprises until the early 2010s, but private operators have gradually increased. Since 2014, private electric vehicle charging companies such as 'Trydan' and 'Xingxing Chongdian' have emerged. The top 10 private companies operate about 90% of all charging stations. They integrate electric vehicle charging applications to install chargers in the most efficient locations.

Massive Subsidies to BYD and CATL Mobility Companies... Central Government and Shenzhen Foster Self-Sufficiency

Shenzhen expanded its electric vehicle ecosystem through massive subsidies involving the government, city, and companies. Although now abolished, the Chinese central government’s subsidy for each electric vehicle once reached 100,000 yuan (approximately 19.27 million KRW). Shenzhen additionally provided city-level subsidies, making bold investments in electric vehicles for public transportation. The city offered subsidies of 500,000 yuan (approximately 96.36 million KRW) per electric bus and 136,000 yuan (approximately 26.21 million KRW) per electric taxi.

A unique aspect is that in China, electric vehicle subsidies are paid not to buyers but to electric vehicle manufacturers. Automakers report their electric vehicle sales to local governments to apply for subsidies, which are then disbursed after expert review. Since subsidies are factored into the sales price, consumers also benefit to some extent. This subsidy policy particularly helped mobility companies like BYD and CATL grow quantitatively and develop self-sufficiency.

An electric scooter parked on a road near Huaqiangbei in Shenzhen, China. Charging stations are also installed in the electric scooter storage area across the road. Photo by Jeong Donghoon

In Shenzhen, a 'first-tier city,' electric vehicles also have an advantage when obtaining vehicle license plates. China classifies cities from first to fifth tier based on population, housing prices, and development level. In first-tier cities with severe traffic congestion, license plates for internal combustion engine vehicles are limited and distributed via lottery, which can take years. Some even buy license plates through auctions. In Shenzhen, the price for one license plate ranges from 50,000 to 60,000 yuan (approximately 9.63 million to 11.56 million KRW). In contrast, electric vehicle buyers receive license plates simply by applying. This is why the cities with the highest electric vehicle sales in China?Shanghai, Beijing, Shenzhen, and Guangzhou?are all first-tier cities.

In 2019, the Chinese government designated Shenzhen as a 'Pilot Demonstration Zone of Socialism with Chinese Characteristics.' The goal is to make Shenzhen a model city for China’s growth model, which blends capitalism, socialism, and state control. The plan envisions Shenzhen becoming a model city of modernization by 2035 and a world-class innovation city by 2050. Shenzhen hosts headquarters of companies leading China’s technological innovation, from manufacturing sectors like mobility (BYD), drones (DJI), and robotics (Dobot) to software sectors such as AI (SenseTime) and platforms (Tencent).

This content was produced with the assistance of AI translation services.