The electric vehicle (EV) has received considerable attention ever since research reports show its capability to produce zero emissions. In a world where global warming is already a serious issue, the electric vehicle provides potential relief to many countries’ rising carbon dioxide emissions problems. Considering the benefits of electric vehicles, many governments, companies, research institutions, and investors are finding themselves in a position of whether or not to invest in the electric vehicle industry. Despite numerous opinions that the mass adoption of electric vehicles is inevitable and will happen in the near future, more recent research indicates that this future may not be as near as previously expected because of a performance gap. The focus of this study is to analyze what factors contribute to this performance gap and hinder the electric vehicle industry from progressing at the faster rate that it is expected to be at. Other issues relevant to this question will also be discussed.

The Chinese electric vehicle industry is a perfect segment to study for this topic because currently, China is undergoing a lot of economic and social change, and is involved in many industrialization projects that will produce significant amounts of pollution, especially carbon related emissions. In addition, the Chinese market is one of the largest markets for automobiles, and therefore has the potential to have a drastic impact on international automobile markets, including the electric vehicle market.

Following a comprehensive analysis of the Chinese electric vehicle industry, the Chinese company, BYD Company, will be presented as a case study, in which the electric vehicle industry will be analyzed from the corporate perspective. In other words, issues such as which business strategies BYD has used to help promote its electric vehicle sales will be discussed to help show what companies are doing to foster consumer interest in the EV market. Also, the EV industry will be analyzed from the corporate perspective to further show the advantages and disadvantages of investing in the EV industry.

The ending results of the study show that there is indeed a performance gap, and this will cause delays in the mass adoption of electric vehicles. In order to minimize the delays as much as possible, companies need to take a more proactive stance in promoting the electric vehicle; government support alone is simply not enough to start up the electric vehicle industry.

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