CATARC report - January 2016: New Energy Vehicle trends in China

2015 production hits 380,000 units; 500,000 unit target mostly achieved

2016/02/15

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.

  2015 was the final year for the 12th Five-Year Plan and second policy for the prevalence of new energy vehicles. Production volume of new energy vehicles (plug-in hybrid vehicles [PHVs] and electric vehicles [EVs]) in 2015 increased by 4.3-fold year-over-year (y/y) to 366,000 units. Production volume of electrified vehicles, including energy-efficient vehicles (hybrid vehicles [HVs]), in 2015 increased by 4.1-fold y/y to 381,000 units. Production volume of new energy vehicles rapidly increased after it exceeded 50,000 units in October 2015. In the fourth quarter of 2015, production volume of 221,000 units was recorded. Production volume of new energy vehicles from 2009 to 2015 was 486,000 units. Production volume target by 2015 was 500,000 units and thus 97% of the target was met. Furthermore, sales of new energy vehicles in China in 2015 exceeded 300,000 units. Sales of new energy vehicles in the U.S. in 2015 was 115,000 units; therefore, production and sales of new energy vehicles in China in 2015 was the largest globally.

  Production volume of electrified vehicles, including energy-efficient vehicles (HVs), in December 2015 was 101,800 units. Of the 101,800 units, 95,710 units were new energy vehicles. Production volume of new energy vehicles exceeded that of 2014 and it marked a record high. Production volume of passenger EVs, electric buses, and electric special-purpose vehicles have all exceeded 20,000 units. EVs accounted for 83% of the new energy vehicle production share. Production volume of passenger PHVs exceeded 10,000 units for the first time and it also marked a record high.

Fig. 1 Production volume of electrified vehicles (Jul. to Dec. 2015)



Production volumes in China

Table 1 Production volume of electrified vehicles by type in Dec. 2015

 
HV
PHV
EV
Total
Passenger car
6,107
10,555
27,844
44,506
Bus
0
5,339
27,725
33,064
Special-purpose vehicle
0
0
24,247
24,247
Total
6,107
15,894
79,816
101,817

Fig. 1 Electrified vehicle production shares by type (Dec. 2015)


Table 3 Production volume of electrified vehicles by type in 2015

 
HV
PHV
EV
FCV
Total
Passenger car
14,928
63,755
143,285
10
221,978
Bus
100
24,048
88,248
0
112,396
Special-purpose vehicle
0
0
46,854
0
46,854
Total
15,028
87,803
278,387
10
381,228

Fig. 3 Electrified vehicle production shares by type (2015)

Plug-in hybrid vehicle (PHV)

  Seven automakers produced a total of eight passenger PHV models in 2015. Production of the Chery Arrizo 7 PHV and Zhejiang Haoqing Volvo PHV started in 2015. Production volume of the BYD Qin and Tang increased. Due to the increase, BYD vehicles accounted for over 75% of the passenger PHV production share. More than 10,000 Shanghai Automotive Industry Corporation 550 PHVs were produced in 2015. Production volume of sport utility vehicles (passenger PHVs) increased in 2015. Production volume of the BYD Tang increased after its launch in June. The Tang placed first for passenger PHV sales in October. Passenger PHV production share of sport utility vehicles (SUVs) exceeded that of sedans at the end of 2015. The BYD M6 multi-purpose vehicle (MPV) was launched in the second half of 2015. Upon the production of the vehicle, MPVs have been included in the production volume for passenger PHVs.

  Production volume of plug-in hybrid buses in 2015 was 24,048 units. By vehicle type, growth rate of plug-in hybrid buses was the smallest. 37 bus makers produced plug-in hybrid buses; however, the number of models produced was less than that of electric buses. Most of the plug-in hybrid buses produced were large buses with a length of over 10 m. Production volume of plug-in hybrid buses with a length of 8 to 10 m was less than 200 units. Total production volume of the top 10 bus makers, which includes Zhengzhou Yutong, Suzhou King Long Bus, Zhongtong Bus, and Xiamen King Long, accounted for 85% of the plug-in hybrid bus production share. Of the plug-in hybrid buses that were produced in 2015, plug-in hybrid buses equipped with a natural gas engine accounted for 65% of the plug-in hybrid bus production share. Furthermore, 90% of the natural gas plug-in hybrid buses was equipped with a compressed natural gas engine.

Electric vehicle (EV)

  Production volume of passenger EVs in 2015 was 143,000 units. Most of the passenger EVs were from the A00 segment, which accounted for 63% of the passenger EV production share in 2015. In addition, total passenger EV production share of the A00 and A0 segments was 82%. The price of small EVs was less than CNY 50,000 after subsidies from the central and local governments. In addition, demand for EVs increased because running cost was low. Due to these factors, the EV market for the A00 segment increased. The top three automakers that produced passenger EVs were Zhejiang Geely, Hunan Jiangnan, and Beijing Automotive Industry Holding Co., Ltd. (BAIC). Other than BAIC, all of the automakers produced mid-size and small cars under an own-brand name. BYD, a major electrified vehicle maker, was focused on the production of passenger PHVs; therefore, the automaker did not make it into the top three for the production of EVs.

  In 2016, it is expected that sales of EVs that are in the A-segment and above will significantly increase. One reason for the increase is that the policy on electrified vehicle subsidies and technical specifications of vehicles that are exempt from purchase tax will be revised. Another reason is that regulations on travel and purchase restrictions for internal combustion engine vehicles in large and mid-size cities will be introduced. In addition, technical improvement of EVs in the A0 segment and below is expected.

  Production volume of electric buses in December 2015 was 27,700 units and that of 2015 was 88,000 units. 63 bus makers produced electric buses in 2015. Electric bus production share of small buses was the largest. Production volume of buses with a length of 6 to 8 m in 2015 exceeded 54,000 units, which accounted for more than 60% of the production share. When small buses with a length of 6 to 8 m were subject to subsidies by the central government in 2013, many bus makers began developing small electric buses. As a result, production volume of electric buses in 2015 increased.

  Production volume of electric special-purpose vehicles in 2015 was 46,854 units and that of December 2015 increased by 2.7-fold month-over-month (m/m) to 24,247 units. By vehicle type, electric special-purpose vehicles recorded the largest growth rate by both month-over-month and year-over-year. 67 vehicle makers produced electric special-purpose vehicles in 2015. Total production volume of the top 10 vehicle makers accounted for 72% of the electric special-purpose vehicle production share.



Trends in China

Government releases “notice on 13th Five-Year Plan” in which policy for promotion of new energy vehicle charging facilities will be implemented and prevalence of new energy vehicles will be further promoted

  On December 16, 2015, five government departments-Ministry of Finance, Ministry of Science and Technology, Ministry of Industry and Information Technology, National Development and Reform Committee, and National Energy Administration-jointly released a “notice on the 13th Five-Year Plan.” The central government will implement a policy for the promotion of new energy vehicle charging facilities and it will further promote the prevalence of new energy vehicles. In addition, the government asked for opinions regarding the construction of charging infrastructures, the development of new energy vehicle businesses, and the prevalence and acceleration of new energy vehicles.

  According to the “notification,” in the next five years, prevalence of new energy vehicles will progress and the central government will pay subsidies to local governments that can construct charging infrastructures in their provinces (cities/districts). Subsidies will be used to fund the installation of equipment on charging facilities, reconstruction of charging facilities, and the construction of charging networks. Maximum amount of subsidies are paid to provisional/municipal governments that focus on implementing measures to control air pollution. In 2016, provisional/municipal governments that meet the prevalence target of 30,000 new energy vehicles will be paid CNY 90 million. If they exceed the 30,000 unit target, they will be paid a maximum subsidy of CNY 120 million. From 2016 to 2020, the prevalence target for provisional/municipal governments that focus on implementing measures to control air pollution will be raised every year. Subsidy amount will also be increased. In 2020, a maximum subsidy of CNY 126 million will be paid.

BAIC releases 2016 new model launch plan, which includes electric SUV

  On December 28, 2015, Beijing Electric Vehicle Co., Ltd released the 2016 new model launch plan. The plan includes an electric SUV that is based on the Senova X25. The vehicle has a cruising range of up to 300 km.

Panasonic will invest USD 412 million on construction of battery plant in Dalian City

  On December 26, 2015, Panasonic announced that it will invest JPY 50 billion (USD 412 million) on the construction of a plant in Dalian City to produce lithium-ion batteries for vehicles. The plant will be located in the northeastern part of Dalian City. Prismatic batteries for EVs and PHVs will be mainly produced at the plant. The plant is a joint venture between Panasonic and a Chinese company. Panasonic aims to start production of batteries at the plant in 2017. The plant will be Panasonic’s first exclusive plant for electrified vehicle batteries. The plant will have an annual capacity to produce batteries for 200,000 electrified vehicles.

Beijing Hyundai launches its first EV

  Beijing Hyundai Motor Co., Ltd. unveiled the BHCD-1 concept car under its own-brand “Shouwang.” New energy vehicles that will be launched under the Shouwang brand are being developed. Shouwang EVs and HVs are expected to be launched in 2016. The vehicles will mainly compete with the Dongfeng Nissan “Venucia e30.” The Shouwang 500e is an EV based on the Beijing Hyundai Elantra. The dimensions of the vehicle are 4,545 mm in length, 1,725 mm in width, and 1,425 mm in height with a wheelbase of 2,610 mm.

150 EVs that will be used as government vehicles is delivered to Qingdao City

  On January 13, 2016, a ceremony was held in Qingdao City for the delivery of 150 EVs, which will be used as government vehicles. 415 chargers have already been installed in 22 public parking spaces in Qingdao City. Car-sharing services will be provided, and vehicles used for these services will be charged with these chargers. Government employees can rent and return vehicles at any designated parking space. Usage fee is calculated by travel distance and time—from CNY 0.25 per km and CNY 0.1 per minute.

Qoros Auto creates new energy vehicle division

  Qoros Auto’s acting Chief Executive Officer, Anning Chen, announced that Qoros created new divisions—Mobility and New Energy Vehicle (NEV). Both the Mobility and NEV divisions are important to Qoros; however, the automaker is especially focusing on the NEV division. In addition, according to Chief Technology Officer Bob Kruse, the Qoros 5 electric SUV will be the automaker’s first new energy vehicle.

Zoyte Yun 100 S is launched; price after subsidies is CNY 59,900

  On January 10, 2016, the Zotye “Yun 100 S” was launched in Changsha City, Hunan Province. The Yun 100 S is equipped with a three-phase AC induction motor, which produces a maximum output of 27 kW and maximum torque of 140 Nm. The vehicle has a maximum speed of 105 km/h and it has a cruising range of up to 280 km. The vehicle takes two hours to charge. The price of the hi-grade version is CNY 169,900 before subsidies and CNY 59,900 after subsidies, which is paid by both the central and local governments.

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.