CATARC report - April 2017: NEV trends in China

New energy vehicle production significantly increases in March; electric bus production spikes

2017/05/18

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 vehicles [FCVs]; excluding vehicles equipped with lead-acid batteries) in March 2017 in China increased by 3.5-fold month-over-month (m/m) and by 44% year-over-year (y/y). Production volume of electric buses especially increased, exceeding 100 units; production volume in March was approximately 20 times more than that of January through February. Ratio of EV to PHV was 8:2; the majority of new energy vehicles produced was EVs. By vehicle type, production volume of passenger cars, buses, and special-purpose vehicles accounted for 93%, 5.1%, and 2.2%, respectively, of the production share.



Production volumes in China

PHV

 Production volume of both passenger PHVs and plug-in hybrid buses in March 2017 exceeded 1,000 units. Eight automakers produced passenger PHVs in March. These automakers were SAIC Motor Corporation Limited (SAIC), BYD (Shenzhen), Guangzhou Automobile Group (GAC), Brilliance BMW, BYD (Xi'an), etc. By drive battery, production volume of vehicles equipped with a ternary battery accounted for 80% of the production share and that of lithium-iron phosphate battery accounted for 20% of the share.

 Production volume of plug-in hybrid buses in March increased by 3.6-fold m/m and by 2.4-fold y/y. Five bus makers produced plug-in hybrid buses in March. These bus makers were Zhongtong Bus, Beiqi Foton Motor, Hunan CSR Times Electric Vehicle, Zhengzhou Yutong, and Anhui Ankai. By drive battery, production volume of vehicles equipped with a lithium-iron phosphate battery accounted for 20% of the production share and that of lithium-ion manganese-oxide batteries 80% of the share.

EV

 Production volume of EVs in March 2017 increased by 3.5-fold m/m. Production volume of passenger EVs increased by 3.4-fold m/m and by 2.2-fold y/y. 18 automakers produced passenger EVs in March. Of these automakers, nine of them produced more than 1,000 units. These automakers were Beijing Electric Vehicle (BJEV), Geely Automobile, Beijing Automotive Industry Holding Co. (BAIC), Hunan Jiangnan Automobile, Jiangling Motors, Zhejiang Haoqing Automobile, BYD, China Anhui Jianghuai Automobile (JAC), and Chery Automobile. Production volume of electric buses declined by 81% y/y. 14 bus makers produced electric buses in March. Production volume of electric special-purpose vehicles increased by 4.4-fold m/m. 30 vehicle makers produced electric special-purpose vehicles in March; however, each maker did not produce many vehicles. Only two vehicle makers produced more than 100 vehicles and they were Dongfeng Yunnan Automobile and Shaanxi Tongjia Auto. By use, most of the vehicles were to be used for delivering cargo, which accounted for 85% of the production share.



Trends in China

NDRC to regulate overproduction of old models

 The industry department of the National Development and Reform Commission (NDRC) held a meeting on controlling automobile investment projects. In this meeting, the agency requested for regulations to control automobile investment projects by governments of each district. The regulation will prohibit the approval of new investment projects of old models and control the production-capacity expansion of these models.

NEA publically releases “notice on accelerating construction of charging facilities on premises of entities”

 The National Energy Administration (NEA) (energy department), State-owned Assets Supervision and Administration Commission of the State Council (SASAC), and National Government Offices Administration released a “notice on accelerating the construction of charging facilities on premises of entities.” Charging facilities must be installed on parking spaces of public facilities that are to be constructed by 2020 and on existing parking spaces, covering at least 10% of the area. As for central state institutions, in addition to their affiliated institutions and state-owned enterprises in Beijing City, charging facilities must be installed on parking spaces, covering at least 30% of the area.

Shanxi provisional government adjusts subsidy policy for new energy vehicles

 On March 7, 2017, government agencies of Shanxi Province─the finance department, science and technology department, Economy and Information Committee, and Development and Reform Commission─released a “notice on the adjustment to the subsidy policy for new energy vehicles.” From January 1, 2017, 50% of national subsidies will be paid as local sales subsidies for EVs that meet the following criteria. They must be listed as one of the Ministry of Industry and Information Technology’s (MIIT’s) recommended new energy models, and also produced and sold in Shanxi Province. On the other hand, local subsidies for the prevalence of EVs will be terminated.

Xi'an municipal government releases notice on plan for prevalence of new energy vehicles

 On March 13, 2017, the Xi'an municipal government released a “notice on the implementation plan for the prevalence of new energy vehicles,” which took effect from January 1, 2017. Main details are as follows.

<Subsidy>
 When an entity or individual purchases a new energy vehicle, 50% of the national subsidy will be paid for vehicles used to perform public services and 30% of the local subsidy will be paid for others. However, local subsidies in total must not exceed 50% of the national subsidy.
 Measures for supervision and control of new energy vehicles will be systematized. Ownership of a new energy vehicle purchased by an entity or individual cannot be changed for three years after purchase.
 The cost to acquire a license plate for a new energy vehicle (CNY 125) will continue to be exempted.
 When an entity or an individual purchases a new energy vehicle, subsidy equal to the full amount of an automobile insurance will be paid for the first purchase of the insurance.
 When an individual with a family register in Xi'an City or possesses a “residence certificate” and has continuously paid social insurance premiums for more than one year in the last two years purchases a new energy vehicle, a subsidy of CNY 10,000 per unit will be paid for the installation and charging costs of a private charging facility.
 A subsidy of 30% of the actual cost for a charging facility (excluding costs to acquire land) that has completed construction and inspection and commenced operation will be paid.

<Prevalence of new energy vehicles>
 Public bus: All public buses additionally purchased by the city, district, or prefecture by 2020 will be new energy vehicles.  When renewing existing vehicles, new-energy-vehicle share will be gradually expanded to 50%, 55%, 60% and 65% in 2017, 2018, 2019, and 2020, respectively.
 Taxi: Both additionally purchased and renewed taxis by the city will all be EVs. In the case of taxis owned by the district or prefecture, all additionally purchased taxis and 50% or more of renewed taxis will be EVs. EV share of renewed taxis will be gradually increased.
 Government-use vehicle: When each level of a political party institution, entity, or public institution renews a vehicle, a new energy vehicle will be preferentially adopted. When a law enforcement agency, such as the public security, quality supervision & administration, industry & commerce, and urban administration, purchases additional new vehicles or renews vehicles, 30% or more of its new vehicles will be new energy vehicles.
 Special-purpose vehicle: Use of new energy vehicles will be expanded through special-purpose vehicles, such as garbage trucks, delivery trucks, mail trucks, airport vehicles, ambulances, school buses, and hazardous-waste transportation vehicles (including medical-waste-only vehicles). EVs will be preferentially adopted for special-purpose vehicles purchased from government funds. In the case that vehicles are not purchased from government funds, 30% or more of vehicles purchased will be new energy vehicles, increasing the share by 10% every year from then on.

<Construction of charging facilities>
 Provisions on the operation management of the construction of charging infrastructures in Xi'an City will be launched in March.
 Technical standards on construction, fire prevention, and safety of charging facilities will be immediately developed.
 Chargers will be installed on parking spaces, covering 30% of the area. Chargers will also be installed on parking spaces of newly constructed residences.

<Advantage of use>
 Policy on exclusive license plates for new energy vehicles will stay in effect in Xi'an City until the central government publically releases a policy on new-energy-vehicle license plates.
 New energy vehicles will be allowed to run on exclusive roads for public buses in Xi'an City.
 New energy vehicles are not subject to traffic regulations even during the winter special-alert period. New energy vehicles used for delivery are not subject to driving regulations in the city.
 Parking lots under the city’s jurisdictional area will be free of charge for two hours for new energy vehicles.

Fujian provisional government to construct 150 charging stations in FY 2017

 The Development and Reform Commission of Fujian Province launched a plan to construct an EV charging infrastructure in fiscal year (FY) 2017. According to the plan, priority will be given to the construction of public charging facilities. Investment amount for FY 2017 is CNY 400 million. 150 charging stations and 3,000 or more charging poles will be installed on premises of public institutions.

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

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