CATARC report - September 2016: New energy vehicle trends in China
New energy vehicle production expands in August thanks to EV bus recovery
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 August 2016 increased by 6 % month-over-month (m/m) and by 55% year-over-year (y/y) to 38,631 units. Of the 38,631 units, EVs accounted for 71% of the production share and PHVs accounted 29%. Looking at production share of new energy vehicles by vehicle type, passenger cars accounted for 77% (slightly declined from the previous month) of the share and buses accounted for 21% (increased by 7 percentage points m/m).
On September 8, the Ministry of Finance of China released the “local budget and financial results and the investigation report on new energy vehicle subsidy fraud.” In the report, the government listed five examples of new energy vehicle subsidy frauds that took place, and criteria for penalties. The government has ended the fraud investigation; however, during the investigation period, production of new energy commercial vehicles temporarily declined. It is expected that the production of new energy vehicles will start to increase since the investigation has been completed.
Fig. 1 Production volume of new energy vehicles (Mar. 2016 to Aug. 2016)