CATARC report - September 2017: NEV trends in China

New energy vehicle production approaches 70,000 units in August

2017/10/12

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 a lead-acid battery) in August 2017 in China increased by11% month-over-month (m/m) and by 82% year-over-year (y/y). Ratio of EV to PHV was 8:2. By vehicle type, production volume of passenger cars, buses, and special-purpose vehicles accounted for 80%, 10%, and 10%, respectively, of the production share.



Production volumes in China

Production volume of new energy vehicles by type in Aug. 2017 (Rounded figures)

(Unit)

EV PHV FCV
Passenger car 40,000 10,000 0
Bus 5,000 900 0
Special-purpose vehicle 6,000 0 0

(Note) EV and PHV figures are rounded to the nearest hundred.



EV

  Production volume of EVs in August 2017 increased by 12% m/m and by 105% y/y. Production volume of passenger EVs significantly increased by 29% and that of electric buses slightly increased by 6%. On the contrary, production volume of electric special-purpose vehicles declined by 37%.

  31 automakers produced passenger EVs in August and 13 of them produced over 1,000 units. By drive battery, most of the vehicles were equipped with a ternary battery followed by a lithium-iron phosphate battery, lithium-ion manganese-oxide battery, and composite battery, accounting for 80%, 18.6%, 1.27%, and 0.13%, respectively, of the production share.

  Production volume of electric buses in August increased by 6% m/m and declined by 8% y/y. 36 bus makers produced electric buses in August. The top five were Zhengzhou Yutong Bus, Zhongtong Bus, Hunan CRRC Times Electric Vehicle, BYD, and Shanghai Wanxiang Automobile. The only bus maker that equipped its buses with a ternary battery was Xiamen Golden Dragon Bus.

  Production volume of electric special-purpose vehicles significantly declined from July and continued to decline in August; production volume in August was close to that of June. 52 vehicle makers produced electric special-purpose vehicles in August. Production volume of special-purpose vehicles used for cargo/transport accounted for 96% of the production share.

PHV

  Production volume of PHVs in August 2017 increased by approximately 5% m/m. Production volume of passenger PHVs increased by 10% m/m and that of plug-in hybrid buses declined by 35% m/m.

  10 automakers produced passenger PHVs in August. By drive battery, vehicles equipped with a ternary battery accounted for 95% of the production share and those equipped with a lithium-iron phosphate battery accounted for 5%.

  10 bus makers produced plug-in hybrid buses in August and only two of them―Zhengzhou Yutong Bus and Yangzhou Yaxing Motor Coach―produced more than 100 vehicles. By drive battery, ratio of lithium-iron phosphate battery to lithium-iron phosphate battery combined with a supercapacitor to lithium-ion manganese-oxide battery was 3:1:6. By fuel type, production volume of vehicles that used natural gas exceeded those that used diesel.



Trends in China

MIIT releases 12th “list of new energy vehicles exempted from vehicle purchase taxes”

  The Ministry of Industry and Information Technology (MIIT) of China released the 12th “list of new energy vehicles exempted from vehicle purchase taxes” on September 5, 2017. A total of 487 new-energy-vehicle models (50 passenger EVs, 229 electric buses, one electric truck, 138 electric special-purpose vehicles, two passenger PHVs, 66 plug-in-hybrid buses, and one fuel-cell bus) were registered in this list.

  The following brands for passenger EVs made it into the list: Anhui Liebao C5BEV, BAIC ET400, BJEV EC180, Beiqi Foton electric MPV, BYD Song EV, Dongfeng E70 and E17, Dongfeng Yulon Yulu EV2, YUDO π1, Hefei Changan CS15 EV, etc. New license plates will be issued in one or two cities of each province (district), excluding direct-controlled municipalities and capital cities, by December 2017 and will be issued to all cities by mid-2018.

Guangzhou municipal government releases 2016 to 2017 subsidy policy for new energy vehicles

  The Development and Reform Commission of Guangzhou Municipality released a “notice from the Guangzhou new-energy-vehicle development guidance group office regarding 2016 to 2017 subsidies for new energy vehicles.” Main provisions were as follows.

  Subsidy standard:

  • Local financial subsidy in 2017 will amount to 50% of the central government subsidy for the same year.
  • Based on the “control method of revenue funds from auctioning of cap on regulation of mid-size/small bus total volume in Guangzhou City,” a subsidy of CNY 10,000 will be paid for each new energy vehicle that meets the conditions. This subsidy is included in the local financial subsidy.
  • When a non-individual user purchases a new energy vehicle and applies for subsidy, the cumulative cruising range of the vehicle must have reached 30,000 km (excluding special-purpose vehicles used for work). Subsidy standards and technical requirements that are to be met will depend on the year the running permit for the vehicle was acquired.

  Subsidy application:

  • Automakers will be responsible to apply for and use local financial subsidies. Automakers not based in Guangzhou City will need to establish a wholly-owned sales company, sell vehicles, and apply for subsidies in the city.

MIIT plans to soon release “dual-credit system” for passenger cars

  The State Council Information Office (SCIO) held a conference to present status information on industrial communication development for the first half of 2017. During this conference, the MIIT and the Operation, Monitoring and Coordination Bureau announced that information pertaining to the “dual-credit system” was posted on the Chinese government legislation-information website managed by the State Council, Legislative Affairs Office (LAO) and that it would be officially released soon. A “dual-credit system” in this case is a method to manage passenger car makers’average fuel consumption credits and new energy credits in parallel. The aim of the dual-credit system is to promote research, development, and prevalence of new energy vehicles in addition to strengthen management of energy conservation and exhaust-emission reduction by constructing a long-term mechanism promoting the development of new energy vehicles. The MIIT has been listening to opinions from four organizations during the period the dual-credit system announcement was posted and is reviewing it.

Chery enhances new-energy-vehicle lineup

  At the Chengdu Motor Show, Gao Lixin, the new general manager of Chery New Energy Automotive Technology Co., Ltd., stated that the vehicles currently on sale represent their future new-energy-vehicle lineup. These include the eQ, eQ1, Arrizo 5e, etc. At the end of 2017, the automaker will launch the Tiggo 3Xe and enhance the lineup of their new energy vehicles.

New energy buses roll-off production line of BYD Guilin plant

  On August 25, 2017, new energy buses rolled-off the production line of BYD’s Guilin plant. 500 units of these electric buses, which were produced for the first time, will be running on the roads of Guilin City as public buses. Specifically, the BYD K9 and C9 electric buses will be in operation; and the K8SEV double-decker bus will be joining the operation from the end of the year.

Sanya municipal government releases 2017 charging-facility construction plan

  On August 22, 2017, the Development and Reform Committee of Sanya City announced that it has launched the “Sanya City 2017 electric-vehicle-infrastructure construction plan.” It plans to have 307 public charging facilities and 919 chargers installed in the city in 2017. The municipal government will pay subsidies to organizations, specializing in charging facilities, or companies (entities) that install charging facilities in 2017. Subsidy amount to be paid will be CNY 200 per 1 kW rated output for each charger. For organizations and companies to receive subsidies by the Sanya Municipal Finance Bureau, they will need to submit an application to have their charging facilities inspected and pass the inspection in accordance to the provisions by December 2017. In addition, the charging facilities must be operated for one year.

BYD to launch A0- and A00-segment EVs

  On August 22, 2017, BYD Chairman Wang Chuanfu announced that BYD will launch small EVs, having a sales price of CNY 100,000 or less, in 2018. The reason the automaker will be launching low-cost small EVs from 2018 is because A0- and A00-segment vehicles currently account for the majority of the EV market share in China.

New energy vehicle management association established in Nanjing City

  On August 22, 2017, the Nanjing City new energy vehicle management association, which consists of a membership of 30 companies─such as Suning Commerce Group Co., Ltd.─and is mainly based in the Nanjing Economic and Technological Development Zone, was officially established. The number of new energy vehicles owned in Nanjing City has reached 12,900 units, and 10,000 chargers have been installed. A new energy vehicle industry chain─which includes vehicle and parts makers, charging-facility operating companies, etc.─is established in Nanjing City (the number one district nationwide where new-energy-vehicle industries are concentrated). However, out of the 12,900 units, the number of vehicles purchased by individuals in Nanjing City was less than 2,000 units; environment for prevalence, use, and operation of new energy vehicles has not yet been in place.

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