CATARC report - January 2015: New Energy Vehicle trends in China
December production of 30,000 units exceeds 1% of total Chinese vehicle production
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.
Fig. 1 Production volume of electrified vehicles by vehicle type
(January to December 2014)
Production volume of electrified vehicles in December 2014 in China increased by 3.1-fold year-over-year (y/y) and 2.8-fold month-over-month (m/m). Production volume was 28,012 units (977 vehicles that were equipped with lead-acid batteries were excluded), which hit a new record high. As for the breakdown, production volume of new energy vehicles—electric vehicles (EVs) and plug-in hybrid vehicles (PHVs)—was 27,590 units and that of hybrid vehicles (HVs) was 422 units. Looking at the production volume of electrified vehicles in December by vehicle type, production volume of passenger cars was 15,614 units with a market share of 55.7%. Production volume of buses was 10,242 units with a market share of 36.6%. Production volume of specialty vehicles was 2,156 units with a market share of 7.7%. Production volume of 84,900 units was recorded for new energy vehicles in 2014.
Production volume of new energy vehicles (EVs and PHVs) in December exceeded 20,000 units, which was 1.3% of the vehicle production in China. As for the production volume of passenger cars, new energy vehicles (passenger EVs and PHVs) accounted for 0.8% of the total production. Of the production volume of new energy vehicles in December, production volume of EV buses had the highest increase. Production volume of EV buses exceeded 6,000 units and increased by approximately 5-fold m/m. Production volume of EV specialty vehicles had the second highest increase to that of EV buses. Production volume of EV specialty vehicles increased by more than 3-fold m/m. In test cities, adoption of EV specialty vehicles in the construction and logistics sectors are being promoted. Thus, it is likely that production share of EV specialty vehicles will further increase. On the other hand, production volume of HVs is on a downward trend because they are not subject to new energy vehicle subsidies that are provided by the central government (refer to Figure 2). Production volume of HVs from two of Toyota’s joint ventures accounted for 85% of the production volume in December.
Fig. 2 Transition of hybrid vehicle and new energy vehicle production shares (January to December 2014)
Fig. 3 Transition of new energy vehicle production shares by vehicle type (January to December 2014)
Production volumes in China
Production volume of passenger EVs in December 2014 more than doubled m/m and the number of production models increased to approximately 40. Both hit their record highs. Looking at production volume of passenger EVs in December by model, the Zotye Zhidou placed first and the Kandi K10 placed second. The production share of these two models exceeded 50%. The E150 EV of Beijing Electric Vehicle Co. Ltd. (BJEV: a subsidiary of Beijing Automotive Industry Holding Co., Ltd. [BAIC]) placed third. Production volume of the E150 EV exceeded 1,800 units in December. From these results, it can be said that the A0 segment is the major segment in the passenger EV market.
Beijing New Energy sold approximately 5,000 passenger EVs and PHVs in 2014. The vehicles were mainly sold to businesses that provided taxi and car-sharing services. The percentage of vehicles sold to individuals was low. BAIC established a new energy vehicle rental company with Foxconn, a contract manufacturer of electronic devices. The vehicle rental company established a system for the purchase of new energy vehicles. Automakers establishing vehicle rental companies for the prevalence of new energy vehicles is becoming a new trend in the new energy vehicle market.
Production volume of passenger PHVs in December 2014 slightly increased m/m. Because BYD could not keep up with the battery supply for the Qin, production volume for the Qin in December hovered around 1,800 units. BYD president, Chuan-fu Wang, announced that BYD will double the annual production capacity of the Qin to 40,000 units by April 2015.
The purchase of license plates for vehicles other than new energy vehicles are limited in major cities. Thus, sales of passenger PHVs is on an upward trend. Of the sales of passenger PHVs, the Qin has the largest share in the passenger PHV market. Brilliance BMW introduced the BMW 5 Series PHV in December. More than 30 units were produced; however, the vehicles have not been launched yet. The First Automobile Works (FAW) Besturn B50's plug-in hybrid version, the CA7155PHEV, was redesigned in December. Fuel economy of the CA7155PHEV is 3.2 L/100 km or less (New European Driving Cycle [NEDC] mode). Cruising ranges of the vehicle in EV drive mode are 45 km at 60 km/h and 60 km at 40 km/h.
Production volume of EV and PHV buses was over 10,000 units in December 2014. Production volume of EV buses significantly increased m/m to 6,287 units. EV buses that were produced in December have a cruising range of 60 to 245 km and length of 6 to 12 m. Secondary batteries equipped in the vehicles are mainly iron phosphate lithium ion batteries. Production volume of PHV buses in December increased by 2.3-fold m/m to 3,786 units. PHV buses have been mainly equipped with iron phosphate lithium ion batteries. As for the hybrid system, PHV buses have been equipped with either a series hybrid system or a parallel hybrid system. Each system accounted for approximately 50% of the hybrid systems equipped in PHV buses. Production volume of HV buses was 169 units in December.
Electrified vehicle import
The number of passenger EVs that were imported in December 2014 was 770 units. Most of the passenger EVs that were imported were the Tesla Motors Model S. The number of BMW i3 EVs (including range extender EVs) that were imported was approximately 40 units. Import of Volkswagen (VW) e-up! EVs began in December and 50 units were imported. The number of passenger HVs that were imported in December was over 2,000 units. Most of the passenger HVs that were imported were Lexus brand HVs. The number of BMW i8 PHVs that were imported in December was over 20 units.
Trends in China
Foton starts production at new energy vehicle plant in Shandong Province
On January 5, 2015, Beijing Foton Motor Co., Ltd. held an opening ceremony for its new energy vehicle plant in Shandong Province. At the ceremony, Foton announced that production volume of AUV brand new energy buses reached 10,000 units.
Foton will produce AUV brand EV and PHV buses at the new energy vehicle plant in Shandong Province. Foton invested CNY 1.5 billion in the plant. Annual production capacity of the plant is 10,000 units (including school buses). Foton aims for sales of CNY 7 billion.
Geely’s and Xin Dayang Mechanical and Electrical Group’s JV starts production of EV, Zhidou D1 in Lanzhou City
Xin Dayang Electric Vehicles is Geely’s and Xin Dayang Mechanical and Electrical Group’s 50-50 joint venture (JV). On January 11, 2015, the JV’s first vehicle, Zhidou D1, rolled off the production line at the JV plant in Lanzhou City, Gansu Province. The Zhidou D1 mini EV adopts a lightweight body and an EV chassis. Cruising range of the vehicle is approximately 160 km. Power consumption of the vehicle is 8 kWh/100 km.
As of December 2014, annual production capacity of the Lanzhou plant is 100,000 units. Eventually, the JV will raise the annual production capacity to 300,000 units. In the future, Xin Dayang Electric Vehicles plans to merge Geely’s technology with Xin Dayang Mechanical and Electrical Group’s technology and promote the development of the new energy vehicle market in China.
BYD constructs automotive secondary battery plant in Shenzhen City
On January 5, 2015, BYD started construction of an automotive secondary battery plant in Kengzi Industrial Park in Shenzhen City. Site area of the plant is approximately 100,000 square meters. Construction of the plant is scheduled to be completed at the end of 2015. R&D on automotive batteries will also be conducted at the site. Annual battery-production capacity is 8 GWh. The plant will be able to produce a battery supply for approximately 25,000 buses or over 600,000 passenger HVs.
Beijing New Energy launches Senova EV (ES210)
On December 17, 2014, Beijing New Energy launched the Senova ES210, an EV that is based on the B-segment Senova D70. The vehicle is equipped with a 38 kWh capacity lithium-ion battery. Cruising range of the vehicle is over 180 km. Maximum speed of the vehicle is 130 km/h. Beijing New Energy aims to have the Senova ES210 adopted as company cars and government official vehicles.
Fast-charging facilities to be built on Beijing-Shanghai Expressway
To enable EVs to travel long-distance on the Beijing-Shanghai Expressway, fast-charging facilities will be built on the expressway. The length of the expressway is 1,262 km. Fast-charging facilities will be built every 50 km (on average) from each other. Charging time for vehicles is 30 minutes.
Energy-saving and new energy vehicle network www.chinaev.org
CATARC Beijing Operations
* 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.