How high-speed rail supercharges China’s EV adoption
- Apart from making travel more convenient, the rapid growth of the country’s high-speed trains puts a greener future on the right track
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When someone says, “I drive an electric vehicle or EV because it protects the environment,” it could be music to the ears of climate advocates. Regardless, EVs have reshaped the global transportation landscape, with major traditional global carmakers now joining the race in battery-powered vehicles. In this new wave of the automotive evolution, no country has achieved what China has done.
The Chinese Mainland market held almost two-thirds of global EV sales in 2024, followed by Europe and the US with 17 and 7 per cent, respectively, as reported by Bloomberg. Another report by the International Energy Agency highlights that electric cars accounted for almost half of all the country’s car sales in 2024. Meanwhile, the country continues to be the manufacturing hub, contributing to more than 70 per cent of the world’s EV production.
A quick glance may hint that consumer purchase subsidies and government stimulus to boost production capacity are the main drivers. However, despite similar financial incentives, the EV adoption rate in Western nations still lags behind that of their East Asian counterpart. So, what makes China’s approach different, and how does this approach shape market dynamics and consumer choices?
“Many countries are growing increasingly concerned about how competitive Chinese EVs have become, and whether that success is primarily due to government support,” says Zoe Yang, Associate Professor at the School of Hotel and Tourism Management at the Chinese University of Hong Kong (CUHK) Business School.
Professor Yang notes that the tariffs imposed by the US and the EU on Chinese EVs in late 2024 reflect growing tensions and a gap in understanding the underlying reason for such rapid ascendancy in green technology. Therefore, she sought the answer in her recent paper, High-speed rail and China’s electric vehicle adoption miracle, and discovered a crucial yet often overlooked factor: Rather than serving as substitutes, high-speed rail and electric vehicles function as complementary modes of transport, together creating an integrated system that supports and accelerates EV adoption.
“The expansion of the high-speed rail system is one of the main reasons for the increase in EV market share and sales in Chinese Mainland,” she adds. “Our data indicates that the high-speed rail connectivity can explain up to one-third of the total increase during our sample period.”
In the past two decades, the country’s high-speed rail network has risen to become the world’s most extensive and most heavily utilised system. The country’s railway operator aims to extend its operational high-speed rail tracks to about 60,000 km by 2030, up from 48,000 km at the end of 2024.
Putting peace of mind on wheels
While purchasing an EV could be cost-effective and environmentally friendly, one of the biggest hurdles for potential buyers is “range anxiety,” a fear that the car’s battery won’t last for the expected long trips or reach its intended destination. Although there have been considerable improvements in battery capacity and the expansion of charging facilities, the study finds that concerns about such anxiety, especially under certain geographical or climatic conditions, still linger. As a result, conventional cars often remain a more appealing choice for single-car owners.
High-speed rail, however, offers a solution by making long-distance travel more convenient, allowing consumers to rely on EVs for daily short-distance commutes while using faster trains for longer journeys. In other words, high-speed rail enhances the overall practicality of having EVs. “The extensive and well-integrated network of Chinese Mainland’s high-speed rail system serves as a reliable complement to EVs, alleviating range anxiety by offering an efficient option for medium to long-distance travel,” Professor Yang says.
Working together with Li Ming of CUHK-Shenzhen, Fang Hanming of the University of Pennsylvania and Wang Long of Fudan University, Professor Yang analysed vehicle registration data from 2010 to 2023 comprehensively, and compared changes in EV market share and sales before and after new high-speed rail lines were built across more than 300 prefectural cities in Chinese Mainland.
The team found that the growth in EV adoption following the introduction of high-speed rail connections is substantial, but its impact varied across different regions of the country. The benefits of connected transportation networks are less pronounced in the western part of the country, likely due to lower economic development and less developed EV-related infrastructure, as well as in the northeast, where colder climates can pose a challenge to battery performance.
Connectivity and synergy with other policies
In the following steps, more than 7,000 EV-related policy documents were examined between 2010 and 2022, along with data on EV charging stations across 328 cities from 2010 to 2023, and Chinese Mainland’s road infrastructure and connectivity through 2023. The results confirmed that high-speed rail connectivity is an independent and robust factor that contributes to the rapid adoption of EVs.
However, the well-connected railway network is not the exclusive driving force behind EV adoption. Other factors, such as local industrial policies, charging infrastructure and economic development, cannot be neglected in building a comprehensive grid that boosts confidence in electric cars.
Specifically, consumer purchase subsidies are particularly effective in fostering EV adoption for cities connected by high-speed rail, and the high-speed rail connectivity also leads to more charging stations. When both combine, the positive impact on EV adoption is greater than either factor would achieve alone.
The study challenges the misconception that China’s dominance in the EV market is attributed solely to consumer purchase subsidies and government policies aimed at enhancing production capacity, revealing a more nuanced picture and offering valuable insights for policymakers around the world. The lesson is clear: accelerating the transition to EV requires not just better cars, more supportive policies, and more charging stations, but also integrated transportation systems.
“The high-speed railway is not the only solution,” Professor Yang says. The essential takeaway for other countries is that complementary transportation can reduce long-distance travel concerns and accelerate EV adoption. “Whether it is high-speed railway, express bus systems or charging networks, the goal is to build confidence in the practicality of EV ownership, especially for users who still depend on long-distance mobility.”
At the same time, due to regional disparities, strategies must be tailored to local conditions such as infrastructure readiness, income levels and travel patterns. “Governments can offer higher EV purchase subsidies in less-developed areas and expand heated or indoor charging stations in cold regions,” she adds.
Whether in transportation or other sectors, Professor Yang underscores the significance of integrated planning, which can drive significant and long-term change. “Infrastructure and technology adoption are deeply interconnected. Aligning the two can create powerful synergies that drive sustainable development.”
About Professor Zoe Yang
Professor Zoe Yang is an Associate Professor of Real Estate in the School of Hotel and Tourism Management at CUHK Business School. She received her PhD in real estate from the National University of Singapore in 2018, following an MSc in urban land economics in 2014 and a BComm with honours in finance and real estate in 2012 from the University of British Columbia. Her research spans urban and real estate economics, transportation and mobility, and environmental and sustainability issues. Professor Yang’s work has been published in leading academic journals, including The Review of Economics and Statistics, Journal of Public Economics, Journal of Urban Economics, Real Estate Economics, Regional Science and Urban Economics, Journal of Economic Behaviour and Organisation, and Energy Economics.