China is the world's largest market for electric vehicles, largely thanks to subsidies.
China accounts for 1/2 of the electric vehicle market, with a total of roughly 700k electric vehicle owners. You don't see many Tesla, Chevy or Nissan cars there :p
There are two reasons for the rise in electric cars and decline in gas, especially in city areas.
1) Government Subsidies:
China has had subsides going back since 2009. In fact currently a $35,000 car would get almost $10,000 in subsides, leaving the total at $25,000. This is a massive expense of the government. China plans to end the subsidies in 2020. By 2020 technology will have improved as to making purchasing an electric vehicle more feasible for the average consumer.
2) Rules and regulations specific to China:
China mandated gas powered vehicles with out of city licence plates must get a specific licence plate in order to drive in the cities such of: Shenzhen , Guangzhou, Hangzhou, Shanghai, Tianjin, Beijin, Guiyang. In order to get this license plate you must enter a lotto or partake in an expensive auction. In April 11.3 million people entered the lotto, with only 14,000 being granted the licence plates. If you have an electric vehicle however, you get the licence plate immediately and do not have to pay for the license plate.
Source: http://www.wsj.com/video/electric-cars-are-a-hit-with-chinese-consumers/D17A73C1-4458-41FA-99E4-D6ADB839B32C.html