CATARC report - October 2014: New Energy Vehicle trends in China

Over 10,000 new energy vehicles produced in September, setting new record

2014/11/17

Production volumes in China (Summary)

This report is based on a report by Beijing CATARC Automotive Technology Development Company*1;
MarkLines has edited and translated the company's report to prepare this report.


Fig. 1 Production volume of electrified vehicles by vehicle type
(January to September 2014)

  Production volume of electrified vehicles in China increased by 86.4% month-over-month (m/m) to 11,513 units (includes some lead-acid battery equipped electric vehicles [EVs] and foreign automakers’ passenger hybrid vehicles [HVs]) in September 2014. The reason for the expansion of production is because the Chinese government implemented the acquisition tax exemption policy for new energy vehicles; therefore; automakers enhanced their production. As for the breakdown, production volume of EVs and plug-in hybrid vehicles (PHV) was 10,925 units (of which production volume of passenger EVs that were equipped with lead-acid batteries was 873 units and that of specialty vehicles was 83 units), and production volume of HVs was 586 units. Production volume of EVs and PHVs increased by seven-fold year-over-year (y/y) and doubled m/m; production volume exceeded 10,000 units for the first time in a single month. Looking at the production volume of electrified vehicles by vehicle type in September, production volume of passenger cars was 7,387units with a market share of 64.2%, production volume of buses was 3,961 units with a share of 34.4%, and production volume of specialty vehicles was 163 units with a 1.42% share. Production volume of EVs and PHVs in the January to September 2014 period exceeded 53,000 units.



Production volumes in China

Passenger EV

  Production volume of passenger EVs in September 2014 was 4,465 units, which was an increase by 4.7-fold y/y and an increase by 63.8% m/m. Production volume of passenger EVs and passenger PHVs in September were both record highs. The acquisition tax exemption policy that was implemented in September 2014 for new energy vehicles was the reason behind the expansion of production. Furthermore, subsidies from the central and local governments for new energy vehicles will be reduced from 2015, and automakers are promoting the new launch and production enhancement of new energy vehicles. Beijing Automotive Industry Holding Co., Ltd (BAIC) plans to ship the E150 by the fourth quarter of 2014. Further sales expansion by the end of 2014 is expected for the Denza EV, which was launched by the joint venture between BYD and Daimler in September 2014, and Venucia’s e30, which is being sold by Dongfeng Nissan, by the end of 2014.

  Following the production volume in August, Kandi’s K10 had the highest production volume; its production volume for the January to September 2014 period was 9,726 units. Kandi’s K10 has been adopted as Hangzhou’s short-distance public transport “Micro Public Transport” and as a vehicle for car sharing. In the future, it is expected the vehicle will be adopted in cities other than Hangzhou. Therefore, further sales expansion of entry class EVs, such as Kandi’s K10, is expected.

  Looking by cruising range, production volumes of passenger EVs with a cruising range of 150 to 200 km and 80 to 100 km were approximately 2,000 units each with a share of a little over 40% (refer to Table 1). In the future, if sales expand for passenger EVs, such as Kandi’s K10, Zotye’s E20, JAC’s iEV series, and BAIC’s E150, the sales ratio of vehicles with a cruising range of 150 to 200 km and 80 to 100km will further expand and thus, sales competition among the automakers can intensify.

  The model with the best electricity cost performance is Zotye’s E20, which is equipped with a lithium-ion manganese oxide battery. The electric power consumption of the E20 is 13 km/kWh, which is a value that is higher than the electricity cost performance of vehicles equipped with lithium iron phosphate ion batteries (refer to Table 2). BAIC’s E150 is equipped with a ternary lithium ion battery that has a high-energy density; however, it is not ranked in the top five models for electric power consumption.

Cruising range
(km)
Production volume
in Jul.
(units)
Share
(%)
Production volume
in Aug.
(units)
Share
(%)
Production volume
in Sep.
(Units)
Share
(%)
Main use
Over 300 79 2.0 29 1.1 188 4.2 Taxi
200 - 300 1 0.0 0 0 74 1.7 Individual use
150 - 200 2,670 66.2 2,041 74.9 1,912 42.8 Taxi
Individual use
Rental car
100 - 150 104 2.6 13 0.5 220 4.9 Individual use
80 - 100 1,181 29.3 643 23.6 2,071 46.4 Individual use
Total 4,035   2,726   4,465    

Table 1 Production volume and share of passenger EV by cruising range (July to September 2014)

 

BrandVehicle typeModelBattery typeBattery cell capacity (Ah)Battery capacity (kWh)Cruising range (km)Electric power consumption (km/kWh)
Zotye JNJ7000EVZ2 E20 Lithium manganese acid 10 19.2 250 13
JAC HFC7000AEV iev Lithium iron phosphate 12.5 19 152 8
Venucia DFL7000B2BEV E30 Lithium iron phosphate 33 24 175 7.29
Sail SGM7001EV Sail Lithium iron phosphate 20 21.4 152 7.1
Kandi SMA7000BEV K10 Lithium iron phosphate 66 21.12 150 7.1

Table 2 Top five models with the highest electric power consumption

Passenger PHV

  Production volume of passenger PHVs increased by 48.6% m/m to 2,365 units in September 2014. BYD’s Qin had the most production volume; however, its monthly production capacity remained at a little under 2,000 units. It is expected that the Qin’s lack of production capacity will also be resolved when the battery plant in Shenzhen City, Guangdong operates at the end of 2014. Production volume of Shanghai Automotive Industry Corporation (SAIC)’s PHV “Roewe 550” exceeded 600 units in September.

Passenger HV

  Production volume of passenger HVs in September 2014 was 558 units and all of these vehicles were Toyota models. In China, only a few automakers produced mild and full HVs; therefore, monthly sales volume of HVs has remained at a 500 to 600 unit scale. While sales of EVs and PHVs are strong, the future for the passenger HV market in China is bleak.

HV bus

  Production volume of HV buses for three months in the June to August 2014 period was zero; however, 27 vehicles were produced in September.

EV bus

  Production volume of EV buses in September 2014 was 2,073 units; production volume increased by a little under 20-fold y/y and by a little over 12-fold m/m. The length of the EV buses that were produced in September were 6 to 12 m. In addition to BYD, bus makers, such as Yutong, Ankai, Zhongtong Bus, and First Automobile Works (FAW), started producing EV buses in September. Of these buses, EV buses (vehicle type: ZK6125BEVG6) with a cruising range of over 300 km that is produced by Yutong has been attracting attention. Production  of EV buses is expanding due to the Chinese government policy to diffuse EV buses in major cities.

PHV bus

  Production volume of PHV buses increased by 2.2-fold m/m and 66-fold y/y at 1,861 units in September 2014. Twelve bus makers produces PHV buses. Chery’s subsidiary bus maker, Chery Wanda Guizhou Bus Co., Ltd, started producing PHV buses in September and produced 44 PHV buses in the same month that it started producing them. Although bus makers, such as Zhongtong Bus, have adopted lithium manganese oxide ion batteries in their PHV buses, other bus makers all have adopted lithium iron phosphate ion batteries combined with electric double-layer condensers.

Electrified vehicle import

  The number of passenger EVs that were imported in September 2014 exceeded 1,000 units, which was a record high. Tesla Motors’ Model S accounted for 98% of the imported passenger EVs.



Trends in China

Shanghai City announces the 8th new energy vehicles that are subject to purchase subsidies for individual uses

  In August 2014, the Shanghai municipal government announced the 8th new energy vehicles that are subject to purchase subsidies for individual uses. The vehicles that were selected for the 8th new energy vehicles were JAC’s iEV4 and Venucia’s e30. In addition to being able to receive subsidies from the Chinese and Shanghai municipal governments, those who purchase either of these vehicles will be able to receive either a three-year or up to 60,000-mileage warranty by the automaker.
  In January 2013, Shanghai municipal government announced the 1st new energy vehicles that were subject to purchase subsidies. Up to the 8th new energy vehicles, a total of 13 models (of which 11 were EV models and two were BYD’s PHV models) were chosen. Of the 11 EV models, three of them were from Shanghai’s automaker.

Wuhan City announces a policy on the prevalence of new energy vehicles

   In June 2014, Wuhan City announced a policy on the prevalence of new energy vehicles. Wuhan city will pay the same amount of subsidy that is being paid by the Chinese government, but up to a maximum of 60% of the selling price, to those who purchase new energy vehicles. In addition, buyers will be exempt from the vehicle and vessel tax, tolls for roads, bridges, and tunnels, and traffic regulations in the city. Buyers can also use some public charging facilities for free. The Wuhan municipal government has come up with a plan to switch all of the taxis that run in the Xincheng District to new energy taxis.

  Wuhan City plans for the ratio of housing complexes and large-scale parking lots that are installed with charging facilities to be 20%. The city will hold an open bid and subsidize 20% of the facility capital investment (maximum of CNY 3 million) for the installation of charging stations. Subsidies for the installation of charging facilities will be implemented by June 2016.

BMW launches the i3 and i8 in China

  On September 21, BMW’s Chinese subsidiary announced it launched the i3 EV and i8 PHV in China. The selling price for the vehicles are: CNY 449,800 for the i3, CNY 516,800 for the i3 range extender model, and CNY 1.988 million for the i8. By adopting BMW’s innovative drive technology "eDrive" and a small battery pack, the i3 was able to achieve a cruising range of 160 km. The i3 range extender model has a cruising range of 285 km. By adopting carbon fiber for the body, the i3 was able to achieve weight reduction. The vehicle’s acceleration time from 0 to 100 km/h is 7.2 seconds. The i8 is equipped with a three-cylinder "TwinPower Turbo" gasoline engine and a drive motor that is manufactured by BMW. The vehicle’s acceleration time from 0 to 100 km/h is 4.4 seconds and overall fuel economy is 2.1 L/100 km.

Qingdao City develops a new generation lithium-ion battery for low-cost EVs

  Qingdao Industrial Technology Research Institute developed a new generation lithium polymer battery. The performance and safety of the battery have significantly improved and thus, the city aims to start by adopting the battery in low-cost EVs.

Youngman adopts nano-carbon battery technology in the Lotus brand vehicles

  Youngman revealed that it is developing a nano-carbon battery (name used in Youngman). In the future, the newly developed nano-carbon battery will be equipped in the Lotus brand vehicles. Currently, Youngman is conducting a demonstration experiment, using a bus that is equipped with the nano-carbon battery. The bus can travel 200 to 300 km with a charge of 4 minutes and 27 seconds. The battery has a charge/discharge cycle of more than 100,000 cycles; compared to a typical lithium ion battery (approximately 2,000 cycles), the life of the battery has significantly improved.

Zhengzhou City to expand charging facilities for new energy vehicles; charging stations to be installed in 3,700 locations by 2015

  Zhengzhou City revealed that it will expand the charging facilities for new energy vehicles and develop charging facilities that correspond to 20,000 new energy vehicles by 2018. According to the plan, bus charging facilities in five locations, bus battery exchange facilities in three locations, taxi charging facilities in 11 locations, bus charging stations in 800 locations, and general charging stations in 2,900 locations will be installed by 2015. Accordingly, since a fast charger will be installed on an average every 4 km, it will be able to meet charging demands of 6,000 vehicles. By 2017, bus charging facilities in 22 locations, bus battery exchange facilities in five locations, taxi charging facilities in 75 locations, specialty vehicle charging facilities in 15 locations, and charging stations in 6,900 locations will be installed; it will meet charging demands of 14,000 new energy vehicles. In 2018, each fast charger will be installed in a 5-minute perimeter between cities and airports and a 10-minute traveling distance between other urban areas. It will develop charging facilities that can meet charging demands of 20,000 new energy vehicles.

Zhejiang Province to develop charging stations in 40,000 locations by 2017, and switch 80% of taxis to EV or natural gas taxis

  Zhejiang Province announced its plan on the prevalence of 84,000 new energy vehicles, and installation of bus battery exchange facilities in 150 locations, charging or natural gas filling facilities in 400 locations, and charging stations in 40,000 locations by 2017. More than 80% of taxis and more than 50% of buses will be switched to electric or natural gas taxis and buses by 2017. Furthermore, in addition to the prevalence of 166,000 new energy vehicles, it aims for more than 90% of taxis and more than 60% of buses to be electric  or natural gas taxis and buses by 2023. Zhejiang Province will be developing charging and gas filling facilities centrally in five cities: Hangzhou, Jinhua, Ningbo, Huzhou, and Shaoxing.

Reference:
Energy-saving and new energy vehicle network www.chinaev.org
CATARC Beijing Operations

*1 China Automotive Technology & Research Center (CATARC) is affiliated to the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). CATARC assists the government in such activities as auto standard and technical regulation formulating, product certification testing, quality system certification, industry planning, policy research, information service and common technology research. Beijing CATARC Automotive Technology Development Company is the Beijing office and a sole subsidiary of CATARC. The Beijing office researches on policies, technical regulations, and standards for promoting Chinese automotive industry.