CATARC report - November 2017: NEV trends in China

New energy vehicle production declines slightly in October

2017/12/14

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 October 2017 in China increased by 75% year-over-year (y/y) and declined by 6.2% month-over-month (m/m). The main reasons for the decline in month-over-month production were due to the consecutive holidays (National Day and Mid-Autumn Festival) and due to the reduction of plant working days to reduce air pollution caused by heavy fog. By vehicle type, production volume for all vehicles (except plug-in hybrid buses) declined on a month-over-month basis. Production shares of EVs and PHVs were 85% and 15%, respectively, and that of passenger cars, buses, and special-purpose vehicles were 71%、11%、and 18%, respectively.



Production volumes in China

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

(Unit)

EV PHV FCV
Passenger car 40,000 9,000 0
Bus 6,000 1,000 4
Special-purpose vehicle 10,000 0 0

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



EV

  Production volume of EVs in October 2017 declined by 3.9% m/m and increased by 77% y/y. By vehicle type, production volume of passenger EVs, electric buses, and electric special-purpose vehicles declined by 0.2% m/m, 19.6% m/m, and 6.1% m/m, respectively (production of all vehicle types declined).

  36 automakers produced passenger EVs in October and 13 of them produced over 1,000 units. 38 bus makers produced electric buses in October and only one of them equipped its buses with a ternary battery. 55 vehicle makers produced electric special-purpose vehicles in October, declining by six compared to the previous month.

PHV

  Production volume of PHVs in October 2017 exceeded 10,000 units. By vehicle type, production volume of passenger PHVs declined by 20% m/m, and that of plug-in hybrid buses increased by 26% m/m and by 32% y/y.

  16 bus makers produced plug-in hybrid buses in October and five of them produced over 100 units. By drive battery, vehicles equipped with a lithium-iron phosphate battery, lithium-iron phosphate battery combined with a supercapacitor, and lithium-ion manganese-oxide battery accounted for 20%, 20%, and 60%, respectively, of the production share (same as the previous month). By fuel type, production volume of vehicles that used natural gas continued to exceed those that used diesel due to same reason as the previous month─fuel price.



Trends in China

MIIT releases “10th recommended model list for new energy vehicles”; 85 automakers and 159 models in list

  On November 1, 2017, the Ministry of Industry and Information Technology (MIIT) of China officially released the “10th recommended model list for the prevalence of new energy vehicles” (2017). 159 models by 85 automakers were registered in this list of which 155 were EV models, three were PHV models (by three automakers), and one was an FCV model (by one automaker). The cumulative total number of models that were registered in the 10 recommended model lists officially released by the MIIT in 2017 was 2,948 models by 209 automakers.

MIIT states production and sales volume of new energy vehicles for 2017 will increase by 30% y/y

  On October 19, 2017, the MIIT minister Miao Wei responded to the question on steady development of new energy vehicles as follows.

  Production and sales volume significantly increased at the end of 2016 and significantly declined in early 2017 after the policy adjustment. However, it recovered in the third quarter of 2017, entering a normal stage of development. Production and sales volume for the January to September period increased by more than 30% y/y. Monthly production and sales volume is currently at 80,000 units. If this pace continues, production and sales volume for 2017 will increase by approximately 30% y/y.

MIIT and four other government departments conduct public-relations activities on “dual credit”

  On October 17, 2017, five government departments─the MIIT, Ministry of Finance (MOF), Ministry of Commerce (MOFCOM), State Administration of Taxation (SAT), and General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ)─conducted public-relations activities on the “method to manage corporate average fuel consumption credits for passenger cars and new energy vehicle credits simultaneously” (hereinafter management method) in Beijing City.

   The following explanation was made about the issues which might be easily confused in the “management method.”

  1. Since 2016 to 2017 is a transition period, the responsible department will separately notify how to handle the shortfall of CAFC credits (corporate average fuel consumption credit for passenger cars). Currently, it is necessary to compensate for the shortfall of CAFC credits in 2017. However, as for CAFC credits in 2016, it is still under consideration as to whether compensation is required; therefore, a notification will be released later.
  2. The percentage of NEV credits (new energy vehicle credits) in 2018 has not yet been assessed, but it is possible to offset the shortfall of CAFC credits by NEV credits for the same year. The same applies for 2016 and 2017.
  3. If a company produces, imports, and sells products, each activity will be separately assessed. As for the assessment of imports, in principle, the importer is responsible.
  4. There is no sequence on the four processes of negative CAFC-credit compensation under Article 26 of the “management method.” The company itself can choose.
  5. In regards to Article 36 of the “management method,” the product for which an application is to be submitted must meet the GB27999 fuel-consumption target value before offsetting its shortfall of CAFC credits by NEV credits to zero. What is stated here are target values, and new products also include vehicles that go through a model change.
  6. Low-speed electrified vehicles are not subject to credits. Since the definition of “management method” for new energy vehicles conforms to the “regulation for control of entry of new-energy-vehicle manufacturing companies and products,” low-speed electrified vehicles are not included.
  7. New energy vehicles exported outside China are not subject to NEV credits.

MIIT releases notice on second 2016 subsidy

  Five government departments―the MIIT, Development and Reform Commission, MOF, Ministry of Science and Technology (MOST), and energy department―jointly released the “notice on payment of 2016 subsidies for new energy vehicles (second subsidy in 2016) and declaration of subsidies for charging infrastructures.” The notice requests the new-energy-vehicle promotion department of each province, district, and city to submit a report on the payment of central government subsidies in 2016 for its local automakers. In addition, it requests the department to submit a certificate for product sales and business operation and also a declaration of subsidy for charging infrastructures.

  Vehicles (excluding special-purpose work vehicles [including environmental sanitation vehicles] and passenger cars purchased by individuals) for which an application for subsidy is to be submitted must have reached a cumulative traveling distance of 30,000 km by September 30, 2017. Also, it emphasizes that according to the new energy vehicle lists and protection policies enacted by the local governments, if there are restrictions on the purchase of vehicles, subsidies will be reduced depending on the extent. Expiration dates for the declaration of subsidies for new energy vehicles and charging infrastructures were October 31, 2017 and November 30, 2017, respectively.

DiDi Chuxing enters new energy vehicle industry

  On November 12, 2017, DiDi Chuxing launched a shared-mobility company, using new energy vehicles. The company plans to deploy more than 1 million new energy vehicles by 2020. The company has already established a joint-venture company─Global New Energy Vehicle Service─with Global Energy Interconnection Development and Cooperation Organization (GEIDCO) and is preparing to launch a new energy vehicle charging system─Orange Energy.

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

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