CATARC report - May 2015: New Energy Vehicle trends in China

April 2015 production drops from March; EV buses have strongest year-to-year growth

2015/06/09

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 (Jan. to Apr. 2015)

  Production volume of electrified vehicles in April 2015 in China decreased by 27.7% month-over-month (m/m) and increased by 121.4% year-over-year (y/y) to 10,418 units (803 vehicles equipped with lead-acid batteries were included). Although monthly production volume did not reach that of the previous month, production volume exceeded 10,000 units in two consecutive months. Production volume of new energy vehicles (electric vehicles [EV] and plug-in hybrid vehicles [PHVs]) that were not equipped with lead-acid batteries was 9,060 units. Y/Y growth rate of electric buses marked a record high. Production volume of new energy passenger cars slightly declined from the previous month; however, production volume of passenger hybrid vehicles (HVs) significantly increased.



Production volumes in China

Table 1 Production volume of electrified vehicles by vehicle type in Apr. 2014 / Jan. to Apr. 2015

Type
Apr. 2014
Jan. 2015
Feb. 2015
Mar. 2015
Apr. 2015
Plug-in hybrid passenger cars
784
2,281
1,661
3,315
1,523
Plug-in hybrid buses
480
871
694
802
956
Electric passenger cars
2,562
2,797
2,207
7,828
5,437
Electric buses
143
1,154
659
1,981
1,457
Special-purpose electric vehicles
70
273
156
457
480
Hybrid passenger cars
444
800
525
34
555
Hybrid buses
223
1
1
0
0
Fuel cell passenger cars
0
0
0
0
10
Total
4,805
8,177
5,903
14,417
10,418


Table 2 Production volume of electrified vehicles by vehicle type in Apr. 2015

 
HV
PHV
EV
FCV
Total
Passenger car
555
1,523
5,437
10
7,525
Bus
0
956
1,457
0
2,413
Special-purpose vehicle
0
0
480
0
480
Total
555
2,479
7,374
10
10,418



Fig. 2 Electrified vehicle production shares by vehicle type (Apr. 2015)

Plug-in hybrid vehicle (PHV)

  Production volume of PHVs in April 2015 was 2,479 units. Production volume of plug-in hybrid passenger cars was 1,523 units, which accounted for 61.4% of the total PHV production share in April. Production volume of plug-in hybrid buses was 956 units, which accounted for 38.6% of the total PHV production share in April and exceeded that of the previous month. Four automakers produced plug-in hybrid passenger cars in April. The automakers were BYD, Shanghai Automotive Industry Corporation (SAIC), Brilliance BMW, and GAC Motor. BYD kept first place in production volume for two consecutive months. BYD’s production volume of plug-in hybrid passenger cars decreased by 5.6 points m/m to 67.4%. SAIC placed second to BYD and its production volume accounted for 25.6% of the total plug-in hybrid passenger car production share. Production share of plug-in hybrid passenger car makers did not change greatly from the previous month.

  13 bus makers produced plug-in hybrid buses in April. The number of bus makers declined by two compared to that of the previous month. The major bus makers were Suzhou King Long Bus, Yutong, Shanghai Wanxiang Automobile, Xiamen Golden Dragon Bus, and Beiqi Foton. Total production volume of the five major bus makers accounted for approximately 90% of the total plug-in hybrid bus production share.

Electric vehicle (EV)

  Production volume of electric passenger cars in April 2015 was 5,437 units (647 electric passenger cars equipped with lead-acid batteries were included). 14 automakers produced electric passenger cars in April. The number of automakers declined by four compared to that of the previous month. The top five automakers were Hunan Jiangnan Automobile Manufacturing, Beijing Automotive Industry Holding Co., Ltd. (BAIC), BYD, Geely, and Chery. Total production volume of the top five automakers accounted for 69% of total electric passenger car production share (automakers that produced vehicles equipped with lead-acid batteries were not included).

  Production volume of electric buses was 1,457 units. 22 bus makers produced electric buses in April. The top five bus makers were Yutong, King Long Suzhou, Zhuhai Guangtong, Dongfeng Motor, and Nanjing King Long Bus. Total production volume of the top five bus makers accounted for more than 60% of the electric bus production share. Zhuhai Guangtong placed fourth for the first time in May.

  19 vehicle makers produced special purpose electric vehicles in April. The top five vehicle makers were Chongqing Ruichi Automobile, BAIC, Jiangxi Jiangling, Jiangxi Special Purpose Vehicle, and Wuhu Baoqi (vehicle makers that produced vehicles equipped with lead-acid batteries were not included). Special purpose electric vehicles are often equipped with lead-acid batteries. 32.5% of  special purpose electric vehicles in April were equipped with lead-acid batteries.

Electrified vehicle import

  All of the electrified vehicles that were imported in April 2015 were passenger cars. The number of electrified vehicles that were imported increased by 70.3% m/m to 1,834 units. The main reason for the increase was because the number of imported Toyota HVs  increased. The breakdown of the imported vehicles were: 519 EVs, 1,253 HVs, and 62 PHVs. The Tesla Motors Model S kept first place for imported EVs, which accounted for 91.3% of imported EV market. The BMW i3 placed second with 39 imported units of which 30 vehicles were range extenders. The BMW i8 was the only PHV that was imported. Toyota's HVs accounted for most of the HVs imported in April, reaching 1,130 units. Porsche HVs placed second to Toyota HVs.



Trends in China

MIIT releases “fourth list of new energy vehicles that are exempt from vehicle purchase taxes”

 On May 8, 2015, the Ministry of Industry and Information Technology (MIIT), which is the administrative branch of the Chinese government, released the fourth list of new energy vehicles that are exempt from vehicle purchase taxes. In this list, 330 models were subject to tax exemption. It included EVs of which 26 models were electric passenger cars, 191 models were electric buses, 77 models were special purpose electric vehicles, and one model was an electric truck. New models—such as the Volvo S60L PHV, which attracted attention at the April 2015 Auto Shanghai, Zhonghua EV, and Zhidou D2, which was unveiled at the Electric Vehicle Symposium & Exhibition in Korea—were also in the list.

Chinese government introduces “provision of financial support measures for prevalence of new energy vehicles from 2016 to 2020"and new criterion for subsidies

  On April 29, 2015, the Ministry of Finance of China, National Development and Reform Commission, MIIT, and Ministry of Science and Technology jointly introduced the “provision of financial support measures for the prevalence of new energy vehicles from 2016 to 2020.” Subsidies for new support measures for new energy vehicles will significantly be reduced over the next five years. The government wants to encourage the prevalence of new energy vehicles from the support of the market.

  Central government subsidies for new energy vehicles from 2013 to 2020 are as follows:

Subsidies for new energy vehicles from 2013 to 2020 (CNY ten thousand)
Vehicle type Cruising range (km)
2013
2014
2015
2016
2017
2018
2019
2020
Electric passenger car 80≤R<150
3.5
3.325
3.15
--
--
--
--
--
100≤R<150
--
--
--
2.5
2
2
1.5
1.5
150≤R<250
5
4.75
4.5
4.5
3.6
3.6
2.7
2.7
R≥250
6
5.7
5.4
5.5
4.4
4.4
3.3
3.3
plug-in hybrid passenger car (includes range extender) R≥50
3.5
3.325
3.15
3
2.4
2.4
1.8
1.8
Fuel cell passenger car --
20
19
18
20
20
20
20
20

Beijing municipal government introduces “provision of purchase policy for special purpose electric vehicles"

  Those who acquire license plates for special purpose electric vehicles that are used for mail delivery and logistics during April 1, 2015 to December 31, 2017 in Beijing can apply for subsidies. The special purpose electric vehicles have to be subject to both the “recommended energy-efficient and new energy models” and “new energy vehicles that are exempt from vehicle purchase taxes” that were released by the central government. In addition, the vehicles need to meet the Beijing municipal government’s requirement for technology, safety, and after-sales service.

  The Beijing municipal government pays the same amount of subsidies as paid by the central government. The amount of subsidy is calculated by the total capacity of the battery. CNY 1,800 per 1 kWh is paid in 2015. The maximum total amount of subsidy that will be paid is CNY 135,000 per vehicle. The calculation method used in 2015 will also be used in 2016 and 2017. Total amount of subsidies paid by the central government and the Beijing municipal government will be a maximum of 60% of the vehicle sale price.

Wuhan City: new energy vehicles prevail in various sectors; 50% of vehicles for government official use to be comprised of new energy vehicles

  According to the Standing Committee of the Wuhan municipal government on May 4, 2015, the Wuhan municipal government has committed to the prevalence of new energy vehicles in various sectors, such as public transport and taxis, government official use, and logistics. The Wuhan municipal government plans to possess 10,500 new energy vehicles by the end of 2015. In addition, 50% of their vehicles for government official use will be comprised of new energy vehicles. As of April 2015, the Wuhan municipal government possesses 2,289 new energy vehicles of which 228 units are city buses, 202 units are city commuter cars, and 1,855 units are passenger cars.

Shanghai City: test operations of EV car sharing are launched in harbor district

  On April 29, 2015, the Shanghai municipal government started test operations of EV car sharing in the harbor district of Shanghai. 30 Roewe E50s were launched. The government plans to build an online system for mobile-Internet car sharing in the harbor district by June 2015. The government also plans to increase the number of EVs used for car sharing to 50 units and increase the number of sales offices to five locations by the end of 2015.

Shandong Province: maximum subsidy of CNY 200,000 to be paid for purchases of new energy city buses

  On April 17, 2015, the Shandong provincial government introduced the “policy for energy-efficient and new energy city buses in Shandong Province.” This policy will be effective for two years. In addition to subsidies from the central government, companies that purchase new energy city buses can receive subsidies from the Ministry of Finance of Shandong Province. The Ministry of Finance will pay a maximum subsidy of 60% of what the central government is paying. Maximum subsidy is CNY 200,000 per new energy city bus.

Anhui Province: “policy for development and prevalence of new energy vehicle industry” is introduced

  On April 7, 2015, the Anhui provincial government introduced the “policy for the development and prevalence of the new energy vehicle industry.” According to the policy, construction of charging facilities will be accelerated, and by 2017, charging facilities will be installed at approximately 50 locations and 35,000 charging stands. By 2020, charging facilities will cover the entire Anhui Province and charging facility networks will be established with advanced equipment.

  As of the end of 2014, over 10,000 new energy vehicles in total were produced and possessed in Anhui Province. Although still in the early stages, a new energy vehicle industry is being developed in Anhui Province. It is centered on research and development, demonstration experiment, and industrialization in Hefei City and Wuhu City with Jianghuai Automobile and Chery as the core companies.

Beijing City: upper limit on charging service fees for electrified vehicles is set from June

  From June 1, 2015, upper limit on charging service fees will be set in Beijing City. Charging service fees are charged based on the amount of power that is charged. The upper limit price per 1 kWh is 15% of the highest sales price of 92 RON gasoline per liter.

Geely to launch “Emgrand” EV by end of 2015; cruising range of EV is 260 km

  Geely unveiled the Emgrand EV. The new Emgrand EV uses Volvo’s EV technology. The vehicle is equipped with a 130 kW single motor. Acceleration time of the vehicle from 0 to 100 km/h is less than 10 seconds. Maximum speed of the vehicle is 150 km/h. The vehicle is equipped with a battery for long distance traveling, which enables the vehicle to have a cruising range of 260 km.

 The battery can be charged both by normal charging and fast charging. Charging time is 12 hours for normal charging and 30 minutes (80% charge) for fast charging. Purchasers of the vehicle can receive a vehicle warranty for either four years or 100,000 km and drive system and battery warranties for either five years or 100,000 km. In addition, purchasers can receive subsidies from the central and local governments.

Tesla Motors expands in various charging services

  Tesla Motors provides four methods of charging—home charging, fast-charging stations, public charging, and mobile charging—in China. The automaker believes that the installation of home chargers is most important. Tesla Motors is providing home charging equipment to those who purchase EVs for the first time. However, the equipment is difficult to install due to installation problems and thus home charging is not yet recommended. On the other hand, public charging is the most convenient charging method. The chargers used are the same as the ones used for home charging. Public charging facilities are installed in all sorts of public places; therefore, it can provide satisfying charging services.

 According to a Tesla Motors engineer in charge of charging facilities, Tesla Motors plans to install charging facilities with large power by the third quarter of 2015. Because vehicles can travel a distance of 100 km with an one-hour charge, charging time is almost half that of a conventional charging facility. Tesla Motors plans to install charging facilities in offices and public places, providing charging services that are more convenient and quick.

SAIC introduces “Innovation in motion strategy”

  On April 21, 2015, SAIC exhibited all models of its two brands—the Roewe and MG—at Auto Shanghai. The automaker also introduced its “Innovation in motion strategy,” which will be the pillar of its future product plans. “Innovation in motion strategy” is composed of two technologies—the “NetBlue” traditional powertrain technology and “NetGreen” new energy technology. “Innovation in motion strategy” is a strategy that improves the driving performance and fuel efficiency through the innovation of powertrain technology and reduces CO2 emissions.

Reference:
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.