Beijing has massive electric vehicle (EV) ambitions and is targeting 25% of all car sales in the country as electric vehicles by 2025, reports the Financial Times. In 2019, China sold 1.2 million electric vehicles, which is more than half of global sales. The Chinese Association of Automobile Manufacturers expects sales of new electric vehicles to reach 1.1 million by the end of the year despite the pandemic, reports Reuters. According to FT, China can leverage its huge economies of scale to develop the first electric vehicle that can compete in price with conventional cars and enter the international market ready due to growing climate change concerns. The EV industry in China is at a critical juncture. The price of EV batteries is expected to drop below $ 100 per kWh by 2023, compared to the current $ 160. EV batteries make up a significant portion of the total cost of the car, and the price below $ 100 is a cost parity with internal combustion engines Market Leader: The Model 3 from Tesla Inc (NASDAQ: TSLA) is out with sales of 70,951 units in 2020 through August leader in China, accounting for 13% of total EV sales. However, the Wuling HongGuang Mini EV saw sales of 9,150 units in August, its second full month of sales. The box-shaped EV is seeing massive sales as it stands at $ 4,200, a fraction of Tesla’s $ 42,691 price tag for the Model 3, reports FT HonGuang Mini EV is a joint venture product between General Motors Company (NYSE: GM), SAIC Motor and Liuzhou Wuling Motors Co. Ltd. Noio Inc. (NYSE: NIO) ES6 EV sold 2,840 units in August and 17,161 units in August. Rating: Observers say Chinese EV company ratings are overcooked. The three US-listed Chinese EV startups Nio, Li Auto Inc (NASDAQ: LI) and Xpeng Inc (NYSE: XPEV) are valued at $ 35.4 billion, $ 15.9 billion and $ 14, respectively . $ 4 billion, though they are all making significant losses, FT reports. EV manufacturers and suppliers of components that are profitable trade at high ratings. Hong Kong-listed EV and traditional automaker BYD trades at a trailing 12-month price-performance ratio (PE) of 245, while EV battery maker CATL has a 12-month trailing PE of 117.5, according to the Hong Kong market Resident East Capital fund partner Karine Hirn, China is high but still lower than the PE of 1,045.8. Once mass market is reached, China will benefit from it because of the supply chain benefits and scale, Hirn said. For more information from Benzinga * Click here for Benzinga option deals * Tesla’s California registrations drop 13% in third quarter (C) 2020 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.