CATARC report - April 2018: NEV trends in China

New energy vehicle production increases by 97.2% y/y to 60,000 unit level in March


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 March 2018 in China increased by 76.9% month-over-month (m/m) and by 97.2% year-over-year (y/y) to over 60,000 units. By vehicle type, production volume of EVs and PHVs accounted for 74% and 26%, respectively, of the production share, and passenger cars, buses and special-purpose vehicles accounted for 93%, 5% and 2%, respectively, of the share.

Production volumes in China


  Production volume of EVs in March 2018 increased by 81.9% m/m and by 76.8% y/y.

  Production volume of passenger EVs increased by 78.5% m/m and by 69% y/y. 34 automakers produced passenger EVs. By brand, Beijing Automotive Industry Holding Co. (BAIC) ranked first. By drive battery, vehicles equipped with a ternary battery and a lithium-iron phosphate battery accounted for 79% and 19% of the production share, respectively.

  Production volume of electric buses increased by 168.3% m/m and by 351% y/y. 25 bus makers produced electric buses and seven of them produced over 100 units. Most of the electric buses produced in March had a length of 10 m or greater. By drive battery, most of the buses were equipped with a lithium-iron phosphate battery, followed by a lithium-ion manganese-oxide battery.

  Production volume of electric special-purpose vehicles increased by 75.4% m/m and by 124% y/y. 34 vehicle makers produced electric special-purpose vehicles and four of them produced over 100 units. By use, most of the electric special-purpose vehicles were for cargo-transport use.


  Production volume of PHVs in March 2018 increased by 64.3% m/m and by 192% y/y.

  Production volume of passenger PHVs increased by 61.9% m/m and by 250% y/y. 11 automakers produced passenger PHVs and three of them produced over 1,000 units. By brand, BYD and Roewe ranked first and second, respectively. By drive battery, all vehicles were equipped with a ternary battery.

  Production volume of plug-in hybrid buses in March increased by 387% m/m and declined by 65% y/y to 375 units. Six bus makers produced plug-in hybrid buses. By drive battery, most of the buses were equipped with a lithium-iron phosphate battery combined with a supercapacitor.

Trends in China

President Xi Jinping announces China will immediately ease regulations on foreign capital ratio for automotive industry

 On April 10, 2018, during the opening ceremony of the Boao Forum for Asia Annual Conference 2018, President Xi Jinping stated that China would promote the following major measures to further open its market to foreign companies.

  1. Regulations on market entry will be eased significantly. The basis for easing regulations on automotive, shipbuilding, and aircraft industries are already in place; easing regulations on foreign capital ratio for the automotive industry will take effect immediately.
  2. The national markets supervision management bureau was launched in March 2018 to improve the environment for investing. In the first half of the year, a “pre-establishment national treatment plus negative list” management system will be fully implemented.
  3. To enforce the protection of intellectual property rights, the “national intellectual property office” will be reorganized within the year. Foreign companies will be encouraged to conclude normal technical alliances and their legal intellectual property rights in China will be protected. At the same time, foreign governments will be requested to reinforce protection of China's intellectual properties.
  4. Imports will be expanded. Tariffs on imports of automobiles and other products will be lowered within the year. Developed countries will be requested to eliminate manipulative regulations on trade of high-tech products and ease regulations on export of high-tech products from China.

CVTSC releases interpretation of 2018 subsidy policy for new energy vehicles

  On April 2, 2018, the China Vehicle Technology Service Center (CVTSC) released its interpretation of several issues that emerged upon the implementation of the “notice on the adjustment to the subsidy policy for new energy vehicles”.

I. Submission and screening of applications for listing during the transition period

  Document No. 18 states the following: This notice shall be executed on February 12, 2018 and the transition period shall be until June 11, 2018. Based on the “notice on the subsidy policy for new energy vehicles” (fiscal reform [2016] No. 958) released by the Ministry of Finance (MOF), the Ministry of Science and Technology (MOST), the Ministry of Industry and Information Technology (MIIT), and the National Development and Reform Commission (NDRC), subsidies shall be set as follows for new energy vehicles that are assigned license plates during the transition period: 70% of the adaptive standard for new energy passenger cars and buses and 40% of the adaptive standard for new energy trucks and special-purpose vehicles. Subsidy standard for fuel cell vehicles shall remain the same.  Interpretation of policy: Within the transition period, submission and screening of applications for listing will be implemented according to the provisions in the existing document No. 958. After the transition period (from June 11, 2018), screening will be conducted based on the provisions for listing of the new document No. 18.

II. Issues on implementation of GB/T 18386-2017

 1. Confirmation of additional mass in Ekg calculation

  Document No. 18 states the following: Additional mass required for the calculation of Ekg value shall be based on the “notice on the fiscal support policy for new energy vehicles (2016 to 2020)” (fiscal reform [2015] No. 134). Energy consumption rate shall be calculated according to the “test method for electric vehicle energy-consumption rate and cruising range” (GB/T 18386-2017). (The same shall apply to new energy trucks and special-purpose vehicles.)
  Interpretation of policy: After the transition period, energy consumption tests will be conducted in accordance with GB/T 18386-2017 on all EVs. When Ekg is calculated, the added mass specified in GB/T 18386-2005 referenced in document No. 134 will be used.

 2. Confirming test methods for EV cruising range and energy consumption rate

  Interpretation of policy: After the transition period, EV tests to evaluate cruising range and energy consumption rate will be conducted using GB/T18386-2017. However, when checking guidelines, the provisions of the existing documents―document No. 134 and document No. 958―will be used. M1 and N1 vehicles will be tested using the test cycle, and other vehicles will be tested using the constant speed method.

 3. Implementation period of GB/T18386-2017

  Interpretation of policy: During the transition period, EV tests will be conducted using either GB/T 18386-2017 or GB/T 18386-2005. From May 1, 2018, all tests will be conducted according to GB/T 18386-2017.

III. Transferring from existing list to new list

  Document No. 18 states the following: After new energy vehicles are registered in the “recommended model list for new energy vehicles” (hereinafter, “the list”), sellers can apply for subsidies. Vehicles in the 2017 list and adjusted to meet technical requirements for subsidies can directly be added to the new list.
  Interpretation of policy: After the transition period, if the technical guideline that was officially released is consistent with the requirements in document No. 18, the vehicle in the existing list that meets the technical guideline can be added to the new list without reapplying nor retesting. For FCV products, test reports consistent with the GB/T 33978-2017 standard will be further required.

Shenzhen municipal government releases plan for battery-recycling model system

  On April 2, 2018, the Development and Reform Commission of Shenzhen Municipality released the “Shenzhen City national activity plan for building a battery-recycling model system for new energy vehicles (2018 to 2020)”. The Shenzhen municipal government will be implementing a system (subject to all cities) in which makers will be responsible for recycling batteries due to the increasing number of batteries being produced. By 2020, batteries for new energy vehicles that are subject to subsidies from the central and local governments will be monitored and managed throughout their entire life cycle. Battery standards for each process―production, use, storage, collection, and reuse―will be prepared, and a battery-recycling model system will be built. This system will then be implemented nationwide.

Beijing minibus index management office announces application for new energy vehicle purchase exceeded 230,000

  According to the announcement by the Beijing minibus index management office on April 9, 2018, the number of applications (new and carry-over) for the purchase of new energy passenger cars that were received as of April 8, 2018 was 234,650. The number of new energy vehicle applications from individuals for 2019 to 2022 has reached its limit, and thus vehicles will not be available till 2023.

Tesla to recall 8,898 Model S cars in China

  According to an announcement by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) on April 9, 2018, Tesla will recall 8,898 vehicles in China from June 28, 2018. The Model S cars (2013 to 2016 model years) produced from September 11, 2013 through April 9, 2016 will be subject to the recall.

Great Wall Motor and Baidu forms alliance in four areas, including autonomous driving

  On April 9, 2018, Great Wall Motors Company Limited and Baidu officially signed a memorandum of understanding (MOU) for strategic alliance at the Boao Forum for Asia. They will be working together in four areas―internet of vehicles (IoV), autonomous driving, shared mobility, and big data.

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