CATARC report - September 2016: New energy vehicle trends in China

New energy vehicle production expands in August thanks to EV bus recovery

2016/10/11

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 August 2016 increased by 6 % month-over-month (m/m) and by 55% year-over-year (y/y) to 38,631 units. Of the 38,631 units, EVs accounted for 71% of the production share and PHVs accounted 29%. Looking at production share of new energy vehicles by vehicle type, passenger cars accounted for 77% (slightly declined from the previous month) of the share and buses accounted for 21% (increased by 7 percentage points m/m).

  On September 8, the Ministry of Finance of China released the “local budget and financial results and the investigation report on new energy vehicle subsidy fraud.” In the report, the government listed five examples of new energy vehicle subsidy frauds that took place, and criteria for penalties. The government has ended the fraud investigation; however, during the investigation period, production of new energy commercial vehicles temporarily declined. It is expected that the production of new energy vehicles will start to increase since the investigation has been completed.

Fig. 1 Production volume of new energy vehicles (Mar. 2016 to Aug. 2016)



Production volumes in China

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

 
PHV
EV
Total
Passenger car
8,846
21,029
29,875
Bus
1,940
6,296
8,236
Special-purpose vehicle
0
520
520
Total
10,786
27,845
38,631

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

Plug-in hybrid vehicle (PHV)

  Production volume of PHVs in August 2016 was 10,786 units. Of the 10,786 units, production volume of passenger PHVs declined by 5.3% m/m to 8,846 units. Eight automakers produced passenger PHVs in August. SAIC General Motors Co., Ltd. (SAIC-GM) joined the other automakers in producing passenger PHVs. The top five automakers were Xi'an BYD, Shanghai Automotive Industry Corporation (SAIC), Shenzhen BYD, Guangzhou Automobile Group Co., Ltd. (GAC), and Chery Automobile. Chery released the Arrizo 7 in July 2016 and produced more than 200 units in August. By model, the BYD Qin, BYD Tang, and SAIC Roewe 550 PHEV ranked in the top three. Production of the SAIC-GM Cadillac CT6 PHV began from August 2016. The CT6 PHV is being produced only in China and will be released in the market in the end of 2016 or early 2017. The vehicle will also be exported to the U.S. in the future. According to China Automotive Technology & Research Center (CATARC), if foreign automakers increase the production of passenger PHVs, the new energy vehicle market will be driven to expand.

  Production volume of plug-in hybrid buses in August 2016 increased by 46.6% m/m to 1,940 units. Most of the plug-in hybrid buses produced in August were large buses and mid-size buses. The number of bus makers that produced plug-in hybrid buses in August increased by three from the previous month to 14. The top five bus makers were Anhui Ankai, Beiqi Foton, Chengdu Bus, Dandong Huanghai, and Hunan CSR Times Electric Vehicle (CSREV). By drive battery, plug-in hybrid bus production share of buses equipped with a lithium-ion manganese oxide battery was the highest at 59%, followed by buses equipped with a lithium-iron phosphate battery, and a nickel metal hydride (Ni-MH) battery. Production share of buses equipped with a ternary battery was 5%.

Electric vehicle (EV)

  Production volume of EVs in August 2016 slightly increased from the previous month to 27,800 units. Production volume of passenger EVs declined by 3.5% m/m to 21,029 units. 22 automakers produced passenger EVs in August, and seven of them produced over 1,000 units. The top five automakers were Hunan Jiangnan Automobile, Beijing Automotive Industry Holding Co. (BAIC), Zhejiang Geely, Xi'an BYD, and Chery. The top five brands were BAIC (ranked first for the first time), Zotye, BYD, Zhidou, and Chery.

  Production volume of electric buses in August 2016 significantly increased by 85.5% m/m to 6,296 units. The number of bus makers that produced electric buses in August was 29, which was the same as the previous month. The top five bus makers were Zhengzhou Yutong, Shenzhen BYD, Xiamen King Long, Zhongtong Bus, and Sinotruk Group Jinan Howo Bus . Production volume of electric buses with a length of 6 to 8 m accounted for 18% of the production share, and that of 8 m or greater accounted for 82%. Production volume of large buses with a length of 10 m or greater accounted for 35%. By drive battery, production share of electric buses equipped with a lithium-iron phosphate battery declined from 99% from the previous month to 96%, and that of electric bus equipped with a lithium-titanate battery and lithium-ion manganese oxide battery was 2% each.

  Production volume of electric special-purpose vehicles in August 2016 declined by 3% m/m to 520 units. The number of vehicle makers that produced electric special-purpose vehicles in August declined from 47 from the previous month to 20. The top five vehicle makers were SAIC Motor Commercial Vehicle, Wuhu Bodge Automobile, Ganzhou Special Automobile Works, Shandong KAMA, and Shaanxi Tongjia Automobile. By use, production volume of vehicles used for delivery accounted for the majority of the electric special-purpose production share at more than 90% for two consecutive months.



Trends in China

FAW Hongqi to launch Hongqi H7 PHEV by end of 2016

 FAW Hongqi is planning to launch the Hongqi H7 PHEV by the end of 2016. According to the Ministry of Industry and Information Technology, the Hongqi H7 PHEV is equipped with a hybrid system that combines a 2.0T engine with a motor. Fuel economy of the vehicle is 2.4 L/100 km.

VW and JAC to jointly develop new energy vehicles

 On September 7, 2016, Anhui Jianghuai Automobile (JAC) and Volkswagen (China) Investment Co., Ltd. (VCIC) announced that they signed a memorandum of understanding (MOU)—to jointly develop new energy vehicles—on September 6 in Wolfsburg, Germany. The two companies will establish a joint venture (JV) for research and development, production, and sales of new energy vehicles and parts. In addition, they will provide mobility solutions through this JV. VCIC is a 100% subsidiary of Volkswagen (VW). As VW Group’s headquarter of China, the company invests in businesses, conducts research and development, and provides consulting services.

Geely to release Emgrand PHV in first half of 2017

 Geely Automobile is planning to release the Emgrand PHV in the first half of 2017. The vehicle is equipped with a plug-in hybrid system that combines a 1.5 L engine (maximum output of 77 kW) with a motor and a ternary lithium battery. Maximum speed of the vehicle is 175 km/h.

Geely forms alliance with State Grid Corporation of China

 On August 31, 2016, Geely Group formed a strategic alliance with State Grid Corporation of China. The two companies will be fully cooperating in the expansion and operation of new energy vehicle and charging infrastructures.

Baidu and Chery teams up to develop self-driving EV

 Baidu, a major internet search engine in China, unveiled a self-driving EV. Baidu installed its driverless technology, designed for the Chinese market, on the Chery eQ EV. Baidu has also previously installed the software, AutoBrain, on the BMW 3 Series. AutoBrain is the core of Baidu’s driverless technology, automating drive maps, route searches, and positioning on maps. The AutoBrain installed on the Chery eQ is smaller than the one on the BMW 3 Series. The software is also expected to be cheaper.

Reference:
Energy-saving and new energy vehicle network www.chinaev.org
CATARC Beijing Operations

The China Automotive Technology & Research Center (CATARC) is affiliated with the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). CATARC assists the government in such activities as formulation of auto standards and technical regulations, product certification testing, quality system certification, industry planning, policy research, information services, and common technology research.
The Energy-Saving and New Energy Vehicle Network information service provided by CATARC offers timely information on energy saving and new energy sources, and has functions that include marketing and technology consulting, research, and forecasting.