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

October energy vehicle production decrease due to decline in EV bus production

2014/12/15

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 October 2014)

  Production volume of electrified vehicles in China decreased by 21.2% month-over-month (m/m) to 9,076 units in October 2014. However, when looking at monthly production volumes in 2014, the scale of October production volume was the second highest, which followed the record high in September. As for the breakdown, production volume of electric vehicles (EV) and plug-in hybrid vehicles (PHV) was 8,415 units ; of which production volume of passenger EVs that were equipped with lead-acid batteries was 864 units, production volume of specialty vehicles was 40 units, and production volume of lithium-ion battery-equipped vehicles was 7,511 units. Production volume of hybrid vehicles (HV) was 661 units. Looking at the production volume of electrified vehicles by vehicle type in October, production volume of passenger cars was 7,387 units which account for 81.4% of electrified vehicle production in China; production volume of passenger EVs and PHVs was 6,756 units and that of passenger HVs was 631 units. Production volume of buses was 1,456 units with a share of 16.0%; of which production volume of EV and PHV buses was 1,426 units and that of HV buses was 30 units. Production volume of specialty vehicles was 233 units with a share of 2.6%. Production volume of passenger EVs and EV specialty vehicles expanded both year-over-year (y/y) and m/m in October. Production volume of passenger EVs increased by 2.5% m/m and by 6.6-fold y/y to 4,575 units, and production volume of EV specialty vehicles increased by 43.0% m/m and by 3.1-fold y/y to 233 units. On the other hand, production volume of EV buses, passenger PHVs, and PHV buses decreased m/m. Monthly production volume of passenger HVs has remained at around 600 units.



Production volumes in China

Passenger EV

  As of the end of October 2014, more than 30 municipal (regional) governments announced their support policies for the prevalence of new energy vehicles. Due to these policies, it is expected that the vehicle demand for individual use will increase and the new energy vehicle market will further grow. The top five models with the highest production volume in October were Beijing Automotive Industry Holding Co., Ltd.’s (BAIC) E150, Zotye’s E20, JAC’s IEV4, Venucia’s e30, and BYD’s E6. Kandi’s K10 had kept first place for the production volume of passenger EVs from January to September 2014; however, it fell to sixth place in October. Production volume of the K10 has been sluggish because the demand for the vehicle as a short-distance public transport “Micro Public Transport” has become saturated. Future production volume of the K10 will depend on the demand for the vehicle as a car-sharing vehicle. BAIC expanded production of the E150 in October to meet the ongoing, increasing demands of Beijing district. Venucia produced 458 units of the e30, which was launched in September 2014, in October. In the future, if sales of the e30 continues to expand, there is a possibility that production of EVs that are low-cost and meets users’ demands will expand.

  Looking at the production volume of passenger EVs by cruising range, vehicles with a cruising range of 80 to 100 km and 150 to 200 km had the highest production volume. The reason behind this was because the Chinese government implemented a policy that supported the purchase of new energy vehicles in these cruising ranges. Those who purchased new energy vehicles with a cruising range of either 80 to 150 km or 150 to 250 km were able to receive subsidies of CNY 35,000 and CNY 50,000 respectively. Therefore, the share of vehicles with a cruising range of 80 to 100 km and 150 to 200 km accounted for more than 90% in October.

Cruising range
(km)
Production volume
in Jul.
(units)
Share
(%)
Production volume
in Aug.
(units)
Share
(%)
Production volume
in Sep.
(Units)
Share
(%)
Production volume
in Oct.
(Units)
Share
(%)
Main use
Over 300 79 2.0 29 1.1 188 4.2 256 5.6 Taxi
200 - 300 1 0.0 0 0 74 1.7 3 0.1 Individual use
150 - 200 2,670 66.2 2,041 74.9 1,912 42.8 2,067 45.2 Taxi
Individual use
Rental car
100 - 150 104 2.6 13 0.5 220 4.9 161 3.5 Individual use
80 - 100 1,181 29.3 643 23.6 2,071 46.4 2,088 45.6 Individual use
Total 4,035   2,726   4,465   4,575    

Table 1 Production volume and share of passenger EV by cruising range (July to October 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

  BYD’s Qin continued to keep first place for production volume of passenger PHVs in October 2014. BYD has become a leading company in the new energy passenger car market in China, and the Qin is its main model. BYD has established a company to promote new energy vehicle business, and the automaker plans to further develop charging facilities. Other than the Qin, there are other PHVs, such as Shanghai Automotive Industry Corporation’s (SAIC) Roewe 550 and Guangzhou Automobile Group Co., Ltd.’s (GAC) Trumpchi; however, their production volume has remained flat m/m in October.

HV bus

  HV buses were not produced from June to August; however, 27 units in September 2014 and 30 units in October 2014 were produced.

EV bus

  Production volume of EV buses was 467 units in October 2014. Compared to the 2,073 units in the previous month, production volume has significantly decreased. EV buses that were produced in October with a cruising range of 150 to 200 km had the highest production volume. EV buses that were produced in October had a total length of 6 to 12 m. 70% of the motors that were equipped on the buses were permanent-magnet synchronous motors and 30% of them were AC induction motors. Lithium-ion iron phosphate batteries accounted for 76% of the batteries that were equipped on EV buses.

PHV bus

  Production volume of PHV buses was 959 units in October 2014. Compared to the previous month, production volume decreased by 48.5%. The top three bus makers that produced PHV buses were Yutong, CSR Times, and King Long. In October, the number of bus makers that produced PHV buses was 11 and the number of models that were produced was 22. Of these models, eight models adopted lithium manganese ion batteries, 12 models adopted lithium iron phosphate ion batteries and ultra capacitors, one model adopted ternary lithium-ion batteries, and one model adopted lithium iron phosphate ion batteries. PHV buses equipped with titanium lithium ion batteries that are suitable for fast charging have not been produced in the past few months.

Electrified vehicle import

  The number of passenger EVs that were imported in October 2014 was 132 units; it significantly fell from the over 1,000 units in September. Two passenger EV models, Tesla Motors’ Model S and BMW’s i3, were imported. On the other hand, the number of passenger HVs that were imported was 3,165 units. In China, with the fuel economy regulations in the background, there is focus on reducing the average fuel consumption. Therefore, there is a trend that overseas automakers tend to import HVs with good fuel economies and it is expected that this trend will continue for a while.



Trends in China

Jiangsu provincial government announces its 2014 support policy for the prevalence of EV buses and passenger EVs

  On September 22, 2014, the Jiangsu provincial government announced its “2014 support policy for the prevalence of EV buses and passenger EVs”. Subsidies per vehicle are as follows:

  • EV buses: buses with a total length of 10 m or more—CNY 200,000, buses with a total length of 8 to 10 m—CNY 160,000, and buses with a total length of 6 to 8 m—CNY 120,000
  • Passenger EVs: vehicles with a cruising range of 250 km or more—CNY 25,000, vehicles with a cruising range of 150 to 250 km—CNY 20,000, and vehicles with a cruising range of 80 to 150 km—CNY15,000

Zhejiang Hangzhou municipal government announces its support policy for the prevalence of new energy vehicles

   On October 15, 2014, the Zhejiang Hangzhou municipal government announced its support policy for the prevalence of new energy vehicles. Those who purchase new energy vehicles will receive subsidies from the Hangzhou municipal government in addition to subsidies from the Chinese central government. Contents of the subsidies are as follows:

1. Those who purchase EV buses, PHV buses, EV specialty vehicles (such as delivery vehicles, transport vehicles, and garbage trucks), or fuel cell vehicles will receive the same amount of subsidies as paid by the Chinese government.
2. Those who purchase passenger EVs will receive CNY 30,000 and those who purchase passenger PHVs will receive CNY 20,000.
3. For the construction of charging infrastructures, up to 20% of the investment amount will be paid as subsidy.

GAC Motor launches its range extender EV, Trumpchi GA5

  On October 13, 2014, GAC’s own-brand subsidiary, GAC Motor, launched its range extender passenger EV, Trumpchi GA5. By adopting a high energy density lithium-ion battery, a permanent-magnet synchronous motor, and an integrated control technology, the Trumpchi GA5 achieved a fuel economy of 2.4 L/100 km and a cruising range of over 680 km.

Chery launches its EV, eQ

  On November 5, 2014, Chery launched its EV, eQ, in Shanghai. The vehicle is available in two grades: “Comfort” and “Luxury”. The eQ is equipped with a permanent-magnet synchronous motor and a 22.3 kWh ternary lithium-ion battery. The charging port is located in the same position as the filler neck of the QQ gasoline car. The charging time is 8 to 10 hours from a 220 V household power supply. The vehicle can travel up to over 200 km on a single charge. In addition, since the vehicle is equipped with a brake pedal decoupling regenerative system, it can recover regenerative energy. The vehicle’s acceleration time from 0 to 50 km/h is 5.9 seconds.

SAIC GM Wuling produces 200,000 new energy vehicles in Guangxi Zhuang Autonomous Region

  In October 2014, SAIC GM Wuling agreed with the Guangxi provincial government that it would build a new plant in Guangxi Liuzhou City. The automaker will produce Baojun-brand passenger cars and engines at the new plant. SAIC GM Wuling will invest CNY 8 billion (approximately USD 1.3 billion) in the construction of the plant. The production capacity of the new plant will be 600,000 vehicles per year (of which 200,000 units will be EVs and PHVs) and 400,000 gasoline engines.

Corun jointly develops a hybrid system with Geely Automobile (Geely)

  On October 22, 2014, Hunan Corun New Energy (Corun) announced that it agreed with Geely on the establishment of a joint venture, Corun Hybrid System Co., Ltd., which will develop and produce powertrains for HVs. Corun will have a 51% stake in the joint venture and will invest CNY 336 million.

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.