"German OEMs have committed to diesels in an effort to bridge the gap to European Union CO2 targets," the report said. "European OEMs' strategies are starting to focus on pure EVs, but German OEMs lag with no new EVs before 2019."
China last year sold a record 336,000 EVs, surpassing the US as the country with the highest electric car stock, around a third of the global total, according to a report by the International Energy Agency.
The boom, which started three years ago, was largely thanks to generous government subsidies.
Last month, the Chinese government announced a dual-credit scheme that will be launched in 2019, requiring carmakers to produce a minimum number of EVs. Those failing to meet minimum production targets will have to buy credits from competitors with surplus credits. Vehicles that meet range, or distance, targets will also earn credits.
"The government decided to cut subsidies gradually to allow the industry to stand on its own, as it was heavily reliant on subsidies previously," said Cao Nanxin, a senior industry analyst at research advisory China Policy.
Yutaka Sanada, Nissan's senior vice-president of Asia and Oceania excluding China and India, said the rising demand for EVs has given Chinese carmakers and their Asian suppliers a golden opportunity to "impress and improve".
Sanada said the advances made by Chinese companies will also open many doors for production integration down the road.
"Once the Thai market's electrification demand increases, we may also try to link Chinese electrification part suppliers [with our local production]," he said.
- South China Morning Post