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

October production breaks record again due to early year-end sale

2015/12/09

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.

  Production volume of electrified vehicles in October 2015 in China increased by 51.1% month-over-month (m/m) and by 5-fold year-over-year (y/y) to 52,838 units (498 passenger EVs and 13 special-purpose vehicles, both equipped with lead-acid batteries, were included). Of the 52,838 units, production volume of electrified vehicles that were not equipped with lead-acid batteries was 51,295 units. Monthly production exceeded 50,000 units for the first time. Production volume in October 2015 increased because the year-end sale started early. Due to the early year-end sale, the outlook for early 2016 is that production volume will decline.

  By vehicle type, total production volume of new energy buses (electric and plug-in hybrid buses) and special-purpose vehicles accounted for 20 to 30% of the electrified vehicle production share in the first half of 2015. Production share hovered around 40% in the past few months. In the policy for the prevalence of new energy vehicles, the government set a target that it planned to meet. The deadline is nearing; therefore, production of new energy commercial vehicles has increased.

Fig. 1 Production volume of electrified vehicles (May to Oct. 2015)



Production volumes in China

Table 1 Production volume of electrified vehicles by type in Oct. 2014 / May to Oct. 2015

Type Oct.
2014
May
2015
Jun.
2015
Jul.
2015
Aug.
2015
Sep.
2015
Oct.
2015
y/y (%) m/m (%)
Plug-in hybrid passenger cars  2,181 4,932 6,674 5,700 6,779 5,643 7,028  222.2  24.5
Plug-in hybrid buses  959 1,512 1,656 1,660 2,142 2,453  2,389  149.1  -2.6
Electric passenger cars  4,575 10,992 12,272 8,797 9,661 13,805  22,729  396.8  64.6
Electric buses  467 2,369 5,543 6,371 5,365 8,876  12,814  2,643.9  44.4
Special-purpose electric vehicles  233 689 1,165 1,373 1,495 2,943  6,846  2,838.2  132.6
Hybrid passenger cars  631 520 584 698 865 1,245  996  57.8  -20
Hybrid buses  30 18 0 29 0 15  36  20  140
Total  9,076 21,032 27,894 24,628 26,307 34,980  52,838  482.2  51.1


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

 
HV
PHV
EV
Total
Passenger car
996
7,028
22,729
30,753
Bus
36
2,389
12,814
15,239
Special-purpose vehicle
0
0
6,846
6,846
Total
1,032
9,417
42,389
52,838

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

Plug-in hybrid vehicle (PHV)

  Production volume of plug-in hybrid vehicles (PHVs) in October 2015 slightly increased from the previous month to 9,417 units. Of the 9,417 units, production volume of passenger PHVs increased by 24.5% m/m to 7,028 units, which accounted for 74.6% of the PHV production share. Five automakers—BYD, Shanghai Automotive Industry Corporation (SAIC), Brilliance BMW, Guangzhou Automobile Group (GAC), and Zhejiang Haoqing Automobile—produced passenger PHVs in October. BYD produced three models—Qin, Tang, and Shang. Their total production volume was over 5,000 units. Production volume of the Tang (sports utility vehicle [SUV]) exceeded that of the Qin (sedan) and ranked first for production volume of passenger PHVs. As of October 2015, since new energy passenger cars are build-to-order (BTO), market demand has been reflected in the production results. Production volume of the Tang exceeded that of the Qin. This indicates that there is also an increasing demand for SUVs in the area of new energy vehicles. Production volume of vehicles produced by other automakers has not significantly changed from the previous month. Production volume of the SAIC 550 plug-in hybrid electric vehicle (PHEV) was approximately 1,500 units and that of the Brilliance BMW 530Le and GAC Trumpchi extender vehicle were 150 units or less.

  Production volume of plug-in hybrid buses in October slightly declined from the previous month but it remained above 2,000 units. 20 bus makers produced plug-in hybrid buses in October. Chery Wanda Guizhou Bus Co., Ltd. ranked in the top three for the first time. Zhengzhou Yutong produced the most vehicles (over 1,000 units).

Electric vehicle (EV)

  Production volume of EVs in October 2015 was 42,389 units (498 passenger EVs and 13 special-purpose EVs, both equipped with lead-acid batteries, were included). Production volume of EVs accounted for 80% of the production share of electrified vehicles, which was a record high. Production volume of passenger EVs was 22,729 units (exceeded 20,000 units). 20 automakers produced passenger EVs in October. The top five automakers (vehicles equipped with lead-acid batteries were excluded) were Zhejiang Geely, Hunan Jiangnan Automobile, Beijing Automotive Industry Holding Co., Ltd. (BAIC), China Anhui Jianghuai Automobile (JAC), and Jiangling Motors Co., Ltd. (JMC). Each automaker produced 1,000 or more vehicles. Of the top five automakers, Zhejiang Geely produced the most vehicles (over 10,000 units).

  Production volume of electric buses increased by 44.4% m/m to 12,814 units. Monthly production exceeded 10,000 units for the first time. The number of bus makers that produced electric buses increased to 43, which was a record high. The top five bus makers were Zhengzhou Yutong, Zhongtong Bus, Dongfeng Motor Corporation (DFM), Nanjing King Long Bus, and BYD. Total production share of electric buses by these bus makers was 50.1%.

  Production volume of special-purpose EVs increased by 28-fold y/y to 6,846 units. Production volume increased for eight consecutive years. Demand for logistics vehicles has been especially growing. The top five special-purpose EV makers were DFM, Chongqing Ruichi Automobile, Chongqing Lifan, Tianjin Qingyuan Electric Vehicle Co., Ltd., and Fujian New Longma Motor.

Hybrid vehicle (HV)

  Production volume of hybrid vehicles (HV) in October 2015 was 1,032 units. Of the 1,032 units, 996 units were passenger HVs. Two automakers— GAC Toyota Motor Co., Ltd. and DFM— produced passenger HVs in October. Three bus makers—Shanghai Shenlong Bus Co., Ltd. (SGS), Shanghai Sunwin Bus, and Jinhua Youngman Bus—produced hybrid buses (a total of 36 units) in October.

Electrified vehicle import

  All of the 2,756 electrified vehicles that were imported in October 2015 were passenger cars. The number of vehicles that were imported has been slightly increasing since the previous month. 81.5% of the electrified vehicles that were imported were passenger HVs. The number of passenger EVs that were imported doubled from the previous month. The number of Tesla Model S’s has slightly increased. Close to 40% of the BMW i3s were extender vehicles. Passenger PHVs that were imported were the BMW i8 and VW Golf GTE.



Trends in China

Four central government agencies co-distribute “infrastructure development guideline for electrified vehicle charging (2015 to 2020)”

  On October 9, 2015, the National Development and Reform Commission (NDRC), National Energy Administration (NEA), Ministry of Industry and Information Technology (MIIT), and Ministry of Housing and Urban-Rural Development (MOHURD) distributed the ”infrastructure development guideline for electrified vehicle charging (2015 to 2020).” China has been divided into three areas in the “guideline.” These areas are development acceleration areas, prevalence model areas, and active promotion areas. Construction targets have been set for each area.

1. Development acceleration areas
  - Air pollution is serious in areas, such as Beijing City, Tianjin City, Hebei Province, Liaoning Province, Shandong Province, Shanghai City, Jiangsu Province, Zhejiang Province, Anhui Province, Fujian Province, Guangdong Province, and Hainan Province. Prevalence of electrified vehicles to help reduce the pollution is required in these areas. Thus, additional charging stations at 7,400 locations and 2.5 million charging stands will be built, allowing 2.66 million electrified vehicles to be charged.
  - The ratio of public charging stands to electrified vehicles in cities where new energy vehicles are to prevail will not be less than 1:7. Public charging facilities in central parts of cities will be built at 0.9 km intervals at a minimum. The ratio of public charging stands to electrified vehicles in other parts of the cities will be 1:12. The government aims to build public charging facilities in central parts of cities at 2 km intervals at a minimum.
2. Prevalence model areas
  - The prevalence model areas are as follows: Shanxi Province, Inner Mongolia Autonomous Region, Jilin Province, Heilongjiang Province, Jiangxi Province, Henan Province, Hubei Province, Hunan Province, Chongqing City, Sichuan Province, Guizhou Province, Yunnan Province, Shaanxi Province, and Gansu Province. Additional centralized charging stations at 4,300 locations and at least 2.2 million distributed charging stands will be built by 2020, allowing 2.33 million electrified vehicles to be charged.
  - The ratio of public charging stands to electrified vehicles in cities where new energy vehicles are to prevail will not be less than 1:8. Public charging facilities in central parts of cities will be built at 1 km intervals at a minimum. The ratio of public charging stands to electrified vehicles in other parts of the cities will be 1:15. The government aims to build public charging facilities in central parts of cities at 2.5 km intervals at a minimum.
3. Active promotion areas
  - The central government has not yet included promotion areas, such as Guangxi Autonomous Region, Tibet Autonomous Region, Qinghai Province, Ningxia Autonomous Region, and Xinjiang Autonomous Region, into areas where new energy vehicles are to prevail. Centralized charging stations at a minimum of 400 locations and a minimum of 100,000 distributed charging stands will be built in active promotion areas by 2020, allowing 110,000 electrified vehicles to be charged.
  - The ratio of public charging stands to electrified vehicles in major cities, such as capitals, will not be less than 1:12. The government aims to build public charging facilities in central parts of cities at 2 km intervals at a minimum.

Shenyang City: government introduces “plan for prevalence of new energy vehicles (2015 to 2020)”

  On November 9, 2015, the Shenyang municipal government introduced the “plan for the prevalence of new energy vehicles in Shenyang City (2015 to 2020).” The government encourages its people to replace their old vehicles with new energy vehicles, mainly with PHVs. As long as there is no special reason otherwise, all new vehicles that are purchased and used as government-use vehicles will be new energy vehicles. At least 30% of the new vehicles that are purchased and used as public buses, taxis, logistics vehicles, and garbage trucks will be new energy vehicles. 10,000 new energy vehicles will be prevailed in Shenyang City by 2020. In addition, charging stations in 120 locations and 7,200 charging stands will be built.

Huizhou City, Guangdong Province: approximately 1,000 new energy vehicles prevail

  As of October 2015, the number of new energy vehicles that prevailed in Huizhou City is 971 units. Compared to the number of vehicles in early 2015, it has increased by 700 units. The number of charging stands increased to 357 units. The Huizhou municipal government had aimed to build one charging stand for every three electrified vehicles in its “prevalence plan” and it has met its target. The Guangdong provisional government has requested the Huizhou municipal government for the prevalence of 1,500 new energy vehicles by the end of 2015. Thus, the municipal government plans to focus on the prevalence of new energy vehicles in the following six categories: public buses, taxis, government-use vehicles, garbage trucks, mail delivery trucks, and personal-use vehicles.

GAC introduces “3e” strategy; automaker to invest CNY 2 billion for development of new energy connected cars

 On October 19, 2015, GAC introduced the “3e” (“e-car,” “e-factory,” and “e-ecosystem”) strategy. According to the “e-car” strategy, the automaker will invest CNY 2 billion mainly for the development of new energy connected cars. In the “e-factory” strategy, the automaker will promote the efficiency and energy-saving of production and supply systems and it will build the “GAC Production System” (GPS). As for the “e-ecosystem” strategy, the automaker will focus on the following three vehicle businesses: e-commerce, car life, and vehicle network.

Federation for EV industry formed by companies and organizations in Chongqing City, Hong Kong, and Taiwan kicks off

  On October 29, 2015, a federation for the EV industry that was established by major EV-related companies and research and development organizations in Chongqing City, Hong Kong, and Taiwan was officially kicked off in Chongqing City. The federation aims to support the development and industrialization of EV technology through expanding the capabilities of EV research and development and production in Chongqing City, Hong Kong, and Taiwan. Over 40 companies and organizations, such as Chongqing Productivity Council, Chang'an New Energy Automobile, Chongqing Xiaokang Auto Industry Group, Taiwan Jiahong Power Energy Science & Technology, and Hong Kong Productivity Council are members of the federation.

SAIC installs 50,000 charging stands in next five years

  On October 28, 2015, SAIC and the government of Huangpu District, Shanghai City tied a strategic alliance to build a low-carbon green town and expand the new energy vehicle market. SAIC will install 50,000 charging stands nationwide by 2020. The Huangpu district government will promote the prevalence of new energy vehicles by introducing charging facilities and car-sharing services in the central part of the district, such as People's Square, the Bund, Chenghuang Temple, and Xintiandi.

Zotye to launch its first A-class EV “Damai A3” by 2015

 On October 26, 2015, Zotye International Automobile Trading Co., Ltd.'s chairman, Mr. Wu Jianzhong, announced that the automaker will start production of two EV models, Zhima E30 and Damai A3, at the Jintan plant by the end of 2015. The “Damai A3” is based on the Z300 and it has a cruising range of 200 km. Zoyte positioned the Damai as a brand for young adults.

Beiqi Foton to build EV truck plant in Changsha City

  On November 11, 2015, Beiqi Foton started construction of an EV truck plant in Changsha City, Hunan Province. This plant will be the largest EV truck plant in China. The Aumark EV truck, which has a cruising range of 200 km, will be produced at the plant. In addition to EV trucks, the automaker plans to produce chassis and special-purpose vehicles at this plant.

Tesla Motors completes construction of charging network in Northeast China

  On November 10, 2015, Tesla Motors announced that it has completed the construction of a charging network, covering the route from North to Northeast China. In this charging network, charging stands have been installed at hotels and shopping malls of major cities, such as Qinhuangdao City, Changchun City, and Shenyang City, and not along highways. In June 2015, Tesla Motors released its achievements and 2015 plan for the construction of its charging network in China. In addition to North and Northeast China, the plan includes six other routes, such as North to Central China.

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.