VW, Daimler, and BMW's NEV strategies for the Chinese market

VW to launch new EV brand, Daimler to manufacture EQ brand vehicles in China

2017/11/28

Summary

  According to a mid- to long-term development plan for the automobile industry announced in April, 2017 by China's Ministry of Industry and Information Technology, National Development and Reform Commission the Science and Technology Department, China plans to manufacture 30 million vehicles by 2020, of which 2 million are expected to be new energy vehicles (NEVs). The "Corporate Average Fuel Consumption and New Energy Vehicles Credits Joint Management Method Regulation" was announced on September 27th. China is currently committed to the popularization of EVs, and while Chinese OEMs that manufacture own-brand EV models currently have the lead in EV sales in comparison to foreign rivals, the three German companies; the VW Group, Daimler Group, and BMW Group; also plan to release a number EV and PHV models through 2020. The German automakers are also rapidly moving to respond to rising adoption of EVs through means such as constructing battery plants and establishing charging infrastructure.

  The VW Group will manufacture EVs through its joint ventures with the Shanghai Automotive Industry Corporation Group (hereafter referred to as the SAIC Group) and China FAW Group (hereafter referred to as the FAW Group), agreed to establish a joint venture with JAC in June 2017, and is planning to begin production of a new affordable EV in 2018. Furthermore, after 2020 the automaker plans to release four models from the I.D. family, which uses the MEB platform for EVs.

  In June 2017 the Daimler Group developed a new energy vehicle with its joint venture partner, the Beijing Automobile Works Group (hereafter referred to as the BAIC Group), announced it would invest in BAIC BJEV, an EV maker enjoying strong sales, and modify its existing production lines for gasoline engine vehicles to manufacture NEVs. Moreover, the automaker plans to transfer production of its EQ brand for EVs to China by 2020, and will invest EUR 650 million for battery production, which will increase as the number of EV models grows. The Daimler Group will also strengthen its China-exclusive brand, Denza, a joint venture between the German OEM and China's largest EV maker, BYD.

  The BMW Group has already released EVs through its China-exclusive brand Zinoro, and has also launched Chinese versions of the BMW 5 Series PHV and X1 EV. At the Guangzhou Motor Show in November 2017, the OEM is expected to announce its new 5 Series PHV, which will feature a battery pack assembled at its battery plant that opened in October. Currently, Brilliance Auto is the only Chinese joint venture partner of BMW, but in October 2017, the automaker announced it had agreed to consider the possibility of research and development for a Mini Brand EV with Great Wall Motor.

Group VW Daimler BMW
Joint venture EV/PHV automakers SAIC BAIC Brilliance
FAW BYD
(Denza brand)
GWM (Plan?)
JAC
Battery Made in China Made in China (assembled at own plants) Made in China (assembled at own plants)
Model*1 2017 Phideon PHV*2 Release of the EQ series by 2020 BMW 5 Series PHV
2018 e-Golf, Kodiaq PHV, new brand EV, etc. ?
2019 Superb PHV etc. Mini EV
2020~ I.D. family (4 models) X3 EV

*1: Some forecasts for models are based on automaker announcements and various reports. For details, see the sections for the different groups in the report.
*2: Although announced at the Shanghai Motor Show 2017 in April 2017, as of October 2017, it still has not been released. Further details are unknown.


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