CATARC report - February 2017: NEV trends in China

New energy vehicle production slumps in January 2017

2017/03/17

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 vehicles [FCVs]; excluding vehicles equipped with lead-acid batteries) in January 2017 did not even reach one-tenth of the actual production volume in December 2016. Looking at production share of new energy vehicles by vehicle type, production volume of passenger cars accounted for 88% of the production share, marking a record high. Production volume of buses accounted for 5% of the production share and that of special-purpose vehicles accounted for 7%. Production share of special-purpose vehicles exceeded that of buses for the first time. Furthermore, EVs accounted for 83% of the overall production share and has been sustaining an approximate 80% share for over one year.

 The reason for the decline in the production volume of new energy vehicles was due to the uncertainty of the government policy. On December 30, 2016, the China Vehicle Technology Service Center (CVTSC) announced that it would review the application procedure for the new energy vehicle recommendation list. This announcement overturned the screening process which was required in the first to fifth issues of the 2016 new energy vehicle recommendation list. 235 new energy vehicle makers and 2,193 models made it into the 2016 list. Since all 2,193 models would have needed to be screened again, it would have taken a long time to complete. In addition, if the models did not pass the screening, the new energy vehicle makers who produced these models would not have been able to receive subsidy until their application passed. This was the direct reason why production in January significantly declined.