CATARC report - August 2016: New Energy Vehicle trends in China

New energy vehicle production declines in July and commercial vehicles stagnate


Production volumes in China (Summary)

This report is based on a report by Beijing CATARC Automotive Technology Development Company*;
MarkLines has edited and translated the company's report to prepare this report. Click here for a list of CATARC reports.

  Production volume of new energy vehicles (electric vehicles [EVs], plug-in hybrid vehicles [PHVs], and fuel cell vehicle [FCVs]; excluding vehicles equipped with lead-acid batteries) in July 2016 doubled year-over-year (y/y) and declined by approximately 20% month-over-month (m/m) to 36,387 units. Production volume of new energy vehicles in the January to July 2016 period doubled from that of the same period of the previous year (from 97,800 units to 187,000 units).

  Looking at production share of new energy vehicles in July 2016 by vehicle type, passenger cars accounted for 86% (increase by 12 percentage point m/m) of the share, buses accounted for 13% (decline by 8 percentage point m/m), and special-purpose vehicles accounted for 1% (decline by 4 percentage point m/m). Decline in production share was significant for electric buses and electric special-purpose vehicles. As of July 2016, the Chinese government is revising the subsidy system to strictly regulate fraudulent subsidy payments. Since new energy commercial-vehicle makers are refraining from producing vehicles until the subsidy system is finalized, it is expected that new energy commercial vehicles will be produced on a small scale until the system is finalized.

Fig. 1 Production volume of new energy vehicles (Feb. 2016 to Jul. 2016)