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

New energy vehicle production declines in May and passenger EV range increases


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. Click here for a list of CATARC reports.

 Production volume of new energy vehicles (electric vehicles [EVs], plug-in hybrid vehicles [PHVs], and fuel cell vehicle [FCVs]; excluding vehicles equipped with lead-acid batteries) in May 2016 in China increased by 59.4% year-over-year (y/y) and declined by 4% month-over-month (m/m) to 30,109 units. By vehicle type, production share of passenger cars was the largest. Production volume of passenger cars accounted for 73.7% of the new energy vehicle production share, which increased from the previous month. Of the passenger cars, production volume of passenger EVs accounted for approximately half of the new energy vehicle production share. Production volume of passenger PHVs increased both on a year-over-year and month-over-month bases, exceeding a monthly production of 7,000 units for the first time in 2016. Production volume of new energy vehicles in the January to May 2016 period exceeded 100,000 units.

Fig. 1 Production volume of new energy vehicles (Dec. 2015 to May 2016)

Production volumes in China

Table 1 Production volume of new energy vehicles by type in May 2016

Passenger car
Special-purpose vehicle

Fig. 2 New energy vehicle production shares by type (May 2016)

Plug-in hybrid vehicle (PHV)

  Production volume of PHVs in May 2016 was 7,990 units. Of the 7,990 units, production volume of passenger PHVs increased by 33.6% m/m and 47.4% y/y to 7,462 units. Six automakers produced passenger PHVs in May. These automakers were BYD (Shenzhen and Xi'an), Shanghai Automotive Industry Corporation (SAIC), Zhejiang Haoqing Automobile, Guangzhou Automobile Group (GAC), First Automobile Works (FAW), and Brilliance BMW. The BYD Tang consecutively ranked first for production volume of passenger PHVs. The BYD Qin ranked second with a production volume of over 2,000 units. Zhejiang Haoqing produced more than 1,000 Volvo PHVs while the other automakers produced less than 1,000 units. Less than 10 passenger PHV models were produced in May 2016. However, each major Chinese automaker in China announced that it was developing passenger PHVs and plans to launch luxury vehicles and/or sport utility vehicles (SUVs) in the future. In addition, it is expected that the competition in the passenger PHV market will intensify because foreign automakers are also producing passenger PHVs in China.

  Production volume of plug-in hybrid buses in May 2016 decreased from the previous month to 528 units. Most of the buses produced were large buses with a length of 10 m or greater. Production volume of buses with a length less than 10 m was 100 units. The number of bus makers that produced plug-in hybrid buses in May decreased by three from the previous month to 11. The top five bus makers were Zhongtong Bus, Yutong Bus, Suzhou King Long Bus, Yangzhou Yaxing Motor Coach Co., Ltd. (Yaxing Coach), and Chery & Wanda Guizhou Bus Co., Ltd. Production volume of plug-in hybrid buses equipped with a natural gas engine declined by 9 percentage points m/m to 41%.

Electric vehicle (EV)

  Production volume of EVs in May 2016 was 22,000 units of which 14,700 units were passenger EVs. The number of automakers that produced passenger EVs in May increased by five from the previous month to 25. The top five were Zhejiang Geely, BYD Auto Industry Company Limited, Beijing Automotive Industry Holding Co., Ltd. (BAIC), China Anhui Jianghuai Automobile (JAC), and BYD. Zhejiang Geely ranked first for the production of its three brands—Zhidou, Geely, and Geely Meiri—totaling a production volume of more than 3,500 units. BYD Auto Industry ranked second for the production of the Qin EV and E6, which were produced at its Shenzhen and Xi'an plants, totaling a production volume of more than 2,000 units.

  Lithium nickel manganese cobalt oxide (NMC) batteries accounted for more than 70% of the secondary batteries used in passenger EVs. New models by Rongcheng HawTai Automobile and Brilliance China Automotive Holdings Limited also used these batteries. Vehicles with a cruising range of 150 to 200 km accounted for nearly 60% of the passenger EVs while that of over 300 km accounted for 18%.

  Production volume of electric buses in May 2016 increased by 2.4-fold y/y and declined by 18.9% m/m to 7,094 units. The number of bus makers that produced electric buses in May increased by two from the previous month to 33. The top five were Zhengzhou Yutong, Zhongtong Bus, Chery & Wanda Guizhou Bus, Suzhou King Long Bus, and Nanjing King Long Bus. Electric buses with a length of 8 to 10 m had the largest production share in May. Mid-size buses with a length of 6 to 8 m accounted for 30% of the production share, which was consecutively below the 50% share. Electric buses used for public transportation with a length greater than 10 m have been on a downward trend. Lithium iron phosphate batteries accounted for 99.3% of the secondary batteries used in electric buses.

  Production volume of special-purpose EVs in May 2016 consecutively declined to 284 units. 28 vehicle makers produced special-purpose EVs in May, which was the same as the previous month. The top five were Ganzhou Special Automobile Works, SAIC Motor Commercial Vehicle, Chengdu Dayun Automobile, Hunan Jiangnan Automobile, and Nanjing King Long Bus. Of the 28 vehicle makers, 20 vehicle makers produced less than 10 vehicles.

Trends in China

CRRC TEV supplies 20,000 electric drive systems for new energy to Chery & Wanda Guizhou Bus

 On June 6, 2016, Chery & Wanda Guizhou Bus and CRRC Times Electric Vehicle (CRRC TEV) agreed that CRRC TEV would supply 20,000 T-Power electric drive systems to Chery & Wanda Guizhou Bus. The T-Power systems will be equipped on Chery & Wanda Guizhou Bus’ small new energy buses or logistics/bus rabid transit (BRT) vehicles with a length of 6 to 12 m.

 Chery & Wanda Guizhou Bus is a subsidiary of the Chery Group, a manufacturer of small, mid-size, and large buses. Chery & Wanda Guizhou Bus, with the cooperation of CRRC TEV, has already procured 400 systems and delivered 100 new energy buses to the Guizhou provisional government in 2015.

FAW-VW to produce new energy vehicles at its Fushan plant from 2017

 FAW-Volkswagen Automobile Co., Ltd. (FAW-VW) started phase-two expansion of its Foshan plant from May 2014 and plans to complete the work in 2017. After the expansion is completed, the automaker plans to produce new energy vehicles for Volkswagen (VW) and Audi. An EV version of the Golf¬, e-Golf, will be its first VW-brand new energy vehicle produced in China. FAW-VW has vehicle plants in Changchun City, Chengdu City, and Foshan City with a total production capacity of 1.5 million units per year. The automaker plans to increase annual production capacity to 3 million units by 2020.

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