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

November production exceeds 70,000 units, 2015 production to exceed 350,000 units

2016/01/14

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 November 2015 in China increased by 42.4% month-over-month (m/m) and by 7.3-fold year-over-year (y/y) to 75,257 units (908 passenger electric vehicles [EVs] and 4 special-purpose EVs, both equipped with lead-acid batteries, were included). Production volume marked a record high for two consecutive months. Of the 75,257 units, production volume of electrified vehicles that were not equipped with lead-acid batteries was 72,377 units, which also marked a record high. Production volume growth of EVs in November 2015 was significant, of which that of electric buses was the most significant.

  Considering that the production volume of electrified vehicles from January to November 2015 was approximately 301,800 units (including vehicles equipped with lead-acid batteries), annual production volume for 2015 may exceed 350,000 units. Annual production volume for 2016 may also exceed 350,000 units. On the other hand, improvement of product quality is a challenge for the vehicle makers. They will need to further develop products that are globally competitive.

Fig. 1 Production volume of electrified vehicles (Jun. to Nov. 2015)



Production volumes in China

Table 1 Production volume of electrified vehicles by type in Nov. 2014 / Jun. to Nov. 2015

Type Nov.
2014
Jun.
2015
Jul.
2015
Aug.
2015
Sep.
2015
Oct.
2015
Nov.
2015
y/y (%) m/m (%)
Plug-in hybrid passenger cars 2,357 6,674 5,700 6,779 5,643 7,028 7,510 218.6 6.9
Plug-in hybrid buses 1,672 1,656 1,660 2,142 2,453  2,389 3,911 133.9 63.7
Electric passenger cars 4,164 12,272 8,797 9,661 13,805  22,729 31,019 644.9 36.5
Electric buses 1,273 5,543 6,371 5,365 8,876  12,814 21,804 1,612.8 70.2
Special-purpose electric vehicles 507 1,165 1,373 1,495 2,943  6,846 9,045 1,684 32.1
Hybrid passenger cars 275 584 698 865 1,245  996 1,968 615.6 97.6
Hybrid buses 111 0 29 0 15  36 0 -100 -100
Fuel cell passenger cars 2 0 0 0 0 0 0 -100 -
Total 10,361 27,894 24,628 26,307 34,980  52,838 75,257 626.3 42.4


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

 
HV
PHV
EV
Total
Passenger car
1,968
7,510
31,019
40,497
Bus
0
3,911
21,804
25,715
Special-purpose vehicle
0
0
9,045
9,045
Total
1,968
11,421
61,868
75,257

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

Plug-in hybrid vehicle (PHV)

  Production volume of plug-in hybrid vehicles (PHVs) in November 2015 was 11,421 units. Of the 11,421 units, production volume of passenger PHVs increased by 6.9% m/m to 7,510 units, which accounted for 65.8% of the PHV production share. The same five automakers—BYD, Shanghai Automotive Industry Corporation (SAIC), Brilliance BMW, Guangzhou Automobile Group (GAC), and Zhejiang Haoqing Automobile—that produced passenger PHVs in October produced the vehicles. The total production volume of the BYD Qin, Tang, and M6 increased by approximately 20% m/m to over 6,000 units. The Tang ranked first for production volume of passenger PHVs for two consecutive months. Production volume of the SAIC 550 PHEV slightly declined from the previous month but exceeded 1,000 units.

  Production volume of plug-in hybrid buses in November increased by 63.7% m/m to approximately 4,000 units. All of the plug-in hybrid buses that were produced were large buses with a length exceeding 10 m. 21 bus makers produced plug-in hybrid buses in November. The top five bus makers were Zhengzhou Yutong, Suzhou King Long Bus, Dandong Huanghai, Xiamen King Long, and Hunan CSR Times Electric Vehicle Co., Ltd. Only the top two bus makers produced more than 500 units. 11 other bus makers produced less than 100 units.

Electric vehicle (EV)

  Production volume of EVs in November 2015 was 61,868 units (908 passenger EVs and 4 special-purpose EVs, both equipped with lead-acid batteries, were included). Of the 61,868 units, production volume of passenger EVs increased by 7-fold y/y to 31,019 units. Monthly production exceeded 30,000 units for the first time. 20 automakers produced passenger EVs in November. The top five automakers (vehicles equipped with lead-acid batteries were excluded) were Zhejiang Geely, Hunan Jiangnan Automobile, Chongqing Lifan, Beijing Automotive Industry Holding Co., Ltd. (BAIC), and China Anhui Jianghuai Automobile (JAC). Zhejiang Geely, which ranked first, produced over 12,000 units. Many of the passenger EVs that the top ranking automakers produced were from the A0 and A00 segments. Models from these segments were popular. They were priced in the CNY 40,000 to 50,000 range after subsidy deduction.

  Production volume of electric buses increased by 70.2% m/m to 21,804 units. Monthly production exceeded 20,000 units for the first time. The number of bus makers that produced electric buses increased from the previous month by six to 49. The top five bus makers were Zhengzhou Yutong, Nanjing King Long Bus, Dongfeng Motor Corporation (DFM), Beiqi Foton, and Zhongtong Bus. For the past few months, mid-size buses with a length of 6 to 8 m have accounted for 70% of the electric bus production share. Electric buses with a length of 6 to 8 m accounted for the large production share because these buses were subject to a subsidy of CNY 300,000.

  Compared to 2015, subsidy for electric buses with a cruising range of 150 to 250 km, energy consumption of 0.25 or below per kg (vehicle weight), and length of 6 to 8 m will be reduced by 30% in 2016. However, subsidy for electric buses with a length of 8 to 10 m will be reduced by only 16%, and that for electric buses with a length of 6 to 8 m and cruising range of at least 250 km will be reduced by 17%.

  Production volume of special-purpose EVs increased by 17.8-fold y/y and by 32.1% m/m to 9,045 units. 44 vehicle makers produced special-purpose EVs in November. The top five vehicle makers were Chongqing Ruichi Automobile, Fujian New Longma Motor, DFM, Chongqing Lifan, and Aoxin New Energy. Their total production volume accounted for 56% of the special-purpose EV production share. The top two vehicle makers produced over 1,000 units. 22 other vehicle makers produced less than 50 units.

Hybrid vehicle (HV)

  Production volume of hybrid vehicles (HV) in November 2015 was 1,968 units. All of the vehicles were passenger HVs. Vehicles produced by Toyota joint ventures accounted for 98.1% of the HV production share.

Electrified vehicle import

  All of the 2,275 electrified vehicles that were imported in November 2015 were passenger cars. The number of vehicles that were imported slightly declined from the previous month. 78.2% of the electrified vehicles that were imported were HVs. BMW started importing the X5 xDrive40e PHV from November 2015.



Trends in China

Government officially announces “vehicle and vessel tax regulation (trial basis)” and pays refunds for collected EV taxes

  The State Administration of Taxation (SAT) officially announced that it would implement the “vehicle and vessel tax regulation (trial basis).” The regulation on taxation, tax exemption, and tax refund will be implemented on January 1, 2016. According to the regulation, tax offices, insurance companies, and collection agencies must comply to the tax exemption policy for energy-efficient/new energy vehicles and vessels that are officially announced by the Ministry of Finance, SAT, and Ministry of Industry and Information Technology (MIIT). If taxes have been collected for passenger EVs and passenger fuel cell vehicles (FCVs) that are not subject to vehicle and vessel taxation, companies and agencies will immediately pay a refund for the tax collected.

Government releases 6th list of new energy vehicles that are exempt from tax

  On November 25, 2015, the China MIIT released the 6th list of new energy vehicles that are exempt from vehicle purchase tax. Of the 725 models (by model number) that made it to this list, 591 were EVs (38 passenger cars, 415 buses, 2 trucks, and 136 special-purpose vehicles), and 134 were PHVs (9 passenger cars and 125 buses). Some examples of the 38 passenger EV models from 19 companies that made it to the list were the BYD Qin EV, Hawtai Santa Fe EV, Roewe E50, and Changan Eado EV. Some examples of the passenger PHV models that made it to the list were the BYD Song and M6, and the GAC Trumpchi GA5 PHEV and GA3S PHEV (which will be launched in the first half of 2016).

Sichuan Province: government releases “Sichuan action plan for Made in China 2025,” mainly centering on EVs

  The Sichuan provisional government released the “Sichuan action plan for Made in China 2025.” The government will promote the development of the automotive industry, mainly centering on EVs. The government will also focus on the development of PHVs and FCVs. The government plans to increase the new energy vehicle industry to CNY 50 billion by 2025.

Beijing City: number of existing gasoline vehicles to be reduced, new energy vehicles to be increased to 60,000 units

  On November 6, 2015, the Beijing municipal government held a discussion on measures for vehicle exhaust gas pollution. The Beijing Municipal Bureau of Environmental Protection announced that it would control exhaust gas pollution by the electrification of vehicles, and by the adjustment of model mix. The number of new energy vehicles to be prevailed in Beijing City in 2016 will be increased from 30,000 units (2015 target) to 60,000 units. On the other hand, the number of existing gasoline vehicles will be reduced. The number of new energy vehicles and clean energy vehicles to be prevailed in Beijing City in 2017 will be increased to 200,000 units.

Hebei Province: government expands use of new energy vehicles to public services

  On December 1, 2015, the Hebei provisional government announced that it would use new energy vehicles in public sectors. These vehicles will be used as government-use vehicles, police cars, garbage trucks, mail trucks, school buses, city buses, delivery vehicles, and taxis. The subsidy ratio for these sectors will be increased from the previous 1:0.5 to 1:1. In addition, new energy vehicles must be purchased when additionally purchasing or replacing the vehicles in these sectors.

JAC and Potevio New Energy tie up

  On November 30, 2015, JAC and Potevio New Energy concluded a 5-year strategic alliance for new energy vehicle business. The two companies will promote the sales of new energy vehicles and construct charging networks. They will aim to strengthen the competiveness of the new energy vehicle industry and expand the market share of new energy vehicles.

Foxconn establishes car sharing company, using new energy vehicles, in Hangzhou City

  On December 1, 2015, Foxconn Technology Group established Hangzhou Zheyu New Energy Vehicles Service. This is a car sharing company (wholly-owned subsidiary) that uses new energy vehicles. The company is capitalized at CNY 100 million with a total investment of CNY 1.2 billion. The establishment of Hangzhou Zheyu New Energy Vehicles Service is a project that was initiated on March 2015 upon agreement by Foxconn Technology Group and the Hangzhou municipal government. They plan to launch 5,000 EVs in the next three years.

GAC unveils its first electric SUV

  GAC will launch six models according to its development strategy for new energy vehicles “153” that was released on October 2015. These models are the GA6 PHV、GS4 PHV, GS4 EV, GA3S PHV, GA8 HV, and A0 class EV. The GS4 EV (Trumpchi’s first EV) is an EV version of the GS4 compact SUV. The vehicle has a cruising range of 240 km. A motor with a maximum output of 105 kW and maximum torque of 250 Nm is equipped on the vehicle.

Aoxin New Energy delivers 500 new energy vehicles in Yancheng City

  On November 28, 2015, YUNDA Express and Jiangsu Aoxin New Energy Automobile held a ceremony for the delivery of 500 electric delivery vehicles. The electric delivery vehicle has a cargo room of 5 cubic meters, maximum load capacity of 800 kg, and cruising range of 220 km. The vehicle is exempted from the central government’s purchase tax.

  Jiangsu Aoxin New Energy Automobile is a wholly-owned subsidiary of the State Development & Investment Corporation (SDIC), which is located in Yancheng City, Jiangsu Province. The company develops, produces, and sells EVs, range extender EVs, and FCVs. 36 of its special-purpose vehicles is in the central government’s new energy vehicle list. The company plans to increase annual production volume of new energy vehicles to 150,000 units by 2020, which is the final year of the 13th five-year plan.

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.