CATARC report - July 2017: NEV trends in China
New energy vehicle production steadily increases in June
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 June 2017 in China increased by 16% month-over-month (m/m) and by 19% year-over-year (y/y). Ratio of EV to PHV was 9:1. By vehicle type, production volume of passenger cars, buses, and special-purpose vehicles accounted for 76%, 13%, and 11%, respectively, of the production share.
Production volumes in China
Production volume of new energy vehicles by type in Jun. 2017 (Rounded figures)
(Note) EV and PHV figures are rounded to the nearest hundred.
Production volume of EVs in June 2017 increased by 18% m/m and by 30% y/y. Production volume of all vehicle types─passenger cars, buses, and special-purpose vehicles─increased. Of these vehicles, increase rate of electric buses was the highest. By model of passenger EVs, China Anhui Jianghuai Automobile’s (JAC’s) AO-segment vehicle─Yueyue iEV6E EV─ranked first in production, with a production volume of 3,000 units. The Chery eQ1 and BYD e5 followed, ranking second and third, respectively. By drive battery, production volume of vehicles equipped with a ternary battery, lithium-iron phosphate battery, and lithium-ion manganese-oxide battery accounted for 77%, 20%, and 3%, respectively, in June.
Production volume of electric buses in June 2017 was 3.4-fold that of the previous month; however, it declined by 37% y/y. 31 bus makers produced electric buses in June, which was the largest number of makers in the first half of 2017.
Production volume of electric special-purpose vehicles doubled from the previous month. The automakers that ranked in the top five were Dongfeng Motor Corporation (DFM), Shaanxi Tongjia Auto, SAIC Motor Commercial Vehicle, Shanxi Victory, and Fujian New Longma Motor; however, only DFM produced more than 1,000 units. By use, vehicles used for cargo-transport accounted for 94% of the production share.
Production volume of PHVs in June 2017 slightly increased from the previous month. Five automakers produced passenger PHVs in June. These automakers were Xi'an BYD, SAIC Motor Corporation Limited (SAIC), Shenzhen BYD¸ GAC Motor, and SAIC General Motors Co., Ltd. (SAIC-GM). By drive battery, vehicles equipped with a ternary battery and a lithium-iron phosphate battery accounted for 95% and 5%, respectively, of the production share.
Production volume of plug-in hybrid buses in June 2017 was 3.8-fold that of the previous month. The number of bus makers that produced plug-in hybrid buses in June was 10, which was the same as the previous month. Of the ten bus makers, four of them produced more than 100 vehicles. These bus makers were Zhengzhou Yutong Bus, Beiqi Foton Motor Co., Ltd., Xiamen Golden Dragon Bus, and Xiamen King Long.
All the FCVs produced in June 2017 were special-purpose vehicles. Fuel-cell special-purpose vehicles were produced for the first time in 2017.
Trends in China
MIIT allows four vehicles makers’ application to list new energy vehicles in recommended model list to resume
On June 29, 2017, the Ministry of Industry and Information Technology (MIIT) released a public notice on the order and improvement status of four new energy vehicle makers─Higer Bus Company Limited, Shaolin Bus, Chery & Wanda Guizhou Bus, and Shenzhen Wuzhoulong Motors. On December 19, 2016, the MIIT imposed administrative punishment for six months on these four vehicle makers. In addition, the agency cancelled their eligibility to submit an application to list their new energy vehicles in the recommended model list. Based on a validation report by an expert, it was determined that the four vehicle makers were in order and improvements were made. Thus, the MIIT allowed them to resume with their application to list their new energy vehicles in the recommended model list.
2017 new energy vehicle subsidy─Shanghai municipal government to pay 50% or less than that paid by central government
On June 20, 2017, the Shanghai municipal government announced that it will make adjustments to its new energy vehicle subsidy policy. For new energy vehicles that satisfy the conditions, the government will pay subsidies based on a “provisional method” of a relevant provision. Local subsidies paid will be 50% or less than that paid by the central government. The policy will be in effect from December 31, 2017.
Hangzhou municipal government releases “policy on 2017 – 2018 new energy vehicle subsidies”
On June 19, 2017, the Hangzhou municipal government released a policy on new energy vehicle subsidies (public comments accepted)."
- When a consumer purchases a new energy vehicle in Hangzhou City, the government will pay a local subsidy of 25% of that paid by the central government for small EVs. In addition, maximum subsidy paid is CNY 10,000 per vehicle. For other vehicle types, the government will pay a subsidy of 50% of that paid by the central government. Of these vehicles, maximum subsidy paid for new energy cargo trucks and special-purpose vehicles is CNY 30,000 per vehicle.
- Total subsidy paid by the central and local governments will be 50% or less than that of the selling price of the vehicle (the selling price must match the fair market price).
- The government will encourage various investments in the construction of charging facilities. When building the city’s public or shared charging/battery-exchange facility, the government will pay a subsidy of 25% of the investment amount.
Geely New Energy Commercial Vehicle starts operation of Nanchong plant
On July 9, 2017, Geely Sichuan Commercial Vehicle Co., Ltd. started operation of its new plant in Nanchong City, Sichuan Province, and the Yuancheng E200 electric light truck rolled off the production line. The Yuancheng is Geely's new energy vehicle brand. This E200 electric light truck, which rolled-off the production line, was the brand’s first vehicle. The vehicle has a cruising range of 200 km.
The Geely Nanchong plant is the first new-energy commercial vehicle plant built in Sichuan Province by Geely New Energy Commercial Vehicle. In all, Geely New Energy will have four production bases─Nanchong plant, Jinzhong plant, Coventry plant in the U.K., and Yiwu plant in Zhejiang Province (scheduled for operation in 2018). The construction of the new Nanchong plant began in July 2015. The plant has an annual production capacity of 100,000 vehicles. In addition to facilities for stamping, welding, painting, framing, assembly, and assembly of powertrains, the plant has a research and development site and a test course for new energy commercial vehicles. The automaker is planning to build a second-phase plant in Nanchong City. It will invest CNY 6.8 billion for the construction of the plant, which will produce clean-energy buses and powertrains for new energy commercial vehicles. The plant will have an annual production capacity of 10,000 units.
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