CATARC report - May 2018: NEV trends in China

New energy vehicle production approaches 80,000 units in April


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 April 2018 increased by 32.5% month-over-month (m/m) and by 147% year-over-year (y/y). By vehicle type, production volume of EVs and PHVs accounted for 80% and 20%, respectively, of the production share, and passenger cars, buses and special-purpose vehicles accounted for 87%, 9% and 4%, respectively, of the share.

Production volumes in China


  Production volume of EVs in April 2018 increased by 43% m/m and by 156% y/y.

  Production volume of passenger EVs increased by 34% m/m and by 138% y/y. 39 automakers produced passenger EVs. BYD was the only automaker that produced more than 10,000 units, and 13 automakers produced more than 1,000 units. By brand, Beijing Automotive Industry Holding Co. (BAIC) ranked first.

  Production volume of electric buses increased by 137% m/m and by 1,359% y/y. 30 bus makers produced electric buses and two of them produced over 1,000 units. Most of the electric buses produced in April 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 132.2% m/m and by 96% y/y. 30 vehicle makers produced electric special-purpose vehicles. Chery Automobile Co., Ltd. was the only vehicle maker that produced more than 1,000 units and six vehicle makers produced over 100 units. By use, most of the electric special-purpose vehicles were for cargo-transport use.


  Production volume of PHVs in April 2018 increased by 2.9% m/m and by 119% y/y.

  Production volume of passenger PHVs increased by 1.3% m/m and by 132% y/y. 14 automakers produced passenger PHVs. 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 April increased by 73% m/m and declined by 10.8% y/y. Seven bus makers produced plug-in hybrid buses. By drive battery, most of the buses were equipped with a lithium-ion manganese oxide battery.


  Production volume of FCVs in April 2018 increased by 440% y/y. All vehicles produced were fuel cell buses.

Trends in China

Three ministries (MIIT, etc.) announces active management of “NEVs exempted from vehicle purchase tax list”

  On April 2, 2018, the Ministry of Industry and Information Technology (MIIT), Ministry of Finance (MOF), and State Administration of Taxation (SAT) announced that they would actively manage the “new energy vehicles (NEVs) exempted from vehicle purchase tax list”.

  1. The MIIT and SAT will remove models that fall into either of the following categories if no objections are raised within five business days after the notice is released. Models added to the list before January 1, 2017 and are not produced by the time the notice is released, or models added to the list on and after January 1, 2017 and are not produced for 12 months will be removed.
  2. Models removed from the list will not be reflected in the information management system for motor vehicle certification. In addition, tax agencies will not accept applications for exemption from vehicle purchase tax.
  3. Models that have been removed from the list can be added again if the company resubmits an application and the model passes the screening.
  4. Vehicles that are exempted from purchase tax at the time of purchase will not be subject to purchase tax at the time of handover or transaction.
  5. The MIIT will conduct stricter post-inspections on companies and models registered in the list. If a company violates relevant standards or regulations, it will be penalized by the MIIT and SAT.

MIIT releases provision to manage entry of motor-vehicle production companies and products (public comment draft)

  On April 18, 2018, the MIIT officially released a “provision to manage the entry of on-road motor-vehicle production companies and products into the NEV business (public comment draft)”. (Hereinafter “public comment draft”.) The public comment draft provides specific measures and improvements to entry. Examples are as follows: simplify categorization of vehicle production company entry, enhance procedures and methods to manage vehicle product entry, promote management of vehicle-production company groups, further standardize management of remodeled vehicles, encourage innovation and widespread use of new technology and material, and promote management of systemized vehicle product entry.

  The public comment draft states that the MIIT will decide whether it will approve or reject applications for vehicle production companies and products to be permitted for entry based on technical screening results and publicly released rescreening results. For those approved, the MIIT will release an official notice and, at the same time, release basic information on the vehicle production company and information on the main technical parameters of the product. For those rejected, the applicant will be notified of the reason in writing.

  After the vehicle production company obtains approval for entry by the MIIT, the company can produce and sell the product for which it was approved. Neither an entity nor individual can illegally transfer the acquired entry permit for a vehicle production company and product by reselling, leasing, lending, or by any other method.

Four ministries (MOF, etc.) starts accepting subsidy applications for NEVs (fiscal year up to FY2017)

  On April 19, 2018, the Ministry of Finance (MOF), MIIT, Ministry of Science and Technology (MOST), and National Development and Reform Commission (NDRC) issued a "notice on the application for the payment of subsidies (fiscal year up to FY2017) for NEVs". Furthermore, they instructed each department to submit a report on the applications submitted from January 1, 2017 to December 31, 2017 by local vehicle production companies for the payment of subsidies provided by the central government. For vehicles sold in FY2015 and FY2016 and for which subsidies were not yet paid, subsidies will be paid based on the supplementary standard for the corresponding year.

  New energy passenger cars purchased by individuals and NEVs other than special-purpose vehicles used to perform work, government-use vehicles for political party institutions, and vehicles used at airports for commercial airplanes with a traveling distance reaching a cumulative total of 20,000 km (as of December 31, 2017) are subject to subsidies.

Subsidy applications for NEVs produced by seven Beijing OEMs amounts to over CNY 2.6 billion

  On May 4, 2018, the Beijing Municipal Commission of Science and Technology released the status of NEVs for which the Beijing municipal government recommended up to 2017 and subsidy applications to the central government were submitted. In 2015 to 2017, subsidy applications for 52,619 NEVs produced by seven makers - Beijing Electric Vehicle Co., Ltd (BJEV), BAIC, Beiqi Foton Motor Co., Ltd., Beijing Hualin Special Vehicle Co., Ltd., Neoplan Bus, Beijing Automobile Works, Beijing Hyundai Motor Co., Ltd.─were submitted, totaling to an amount of over CNY 2.6 billion. 26 vehicles were recommended in 2015, and subsidy applications amounted to CNY 3.42 million. Subsidy applications for 3,208 vehicles with an amount totaling to CNY 556 million and that for 49,385 vehicles with an amount totaling to 2.06 billion were submitted in 2016 and 2017, respectively.

NEV use to be accelerated and internal combustion locomotives to be gradually prohibited in Hainan Province

  On April 14, 2018, the State Council officially released a guidance for complete economic reform support in Hainan Province. The government will develop a sharing economy and pose to expand model projects in areas such as mobility, education, and vocational training. It will control the number of motor vehicles owned, accelerate the widespread use of NEVs and energy-efficient vehicles, and gradually prohibit sales of internal combustion locomotives in Hainan Island.

Regulation on managing road tests for connected cars in Changsha City released

  On April 16, 2018, a regulation on managing road tests for connected cars in Changsha City was released. The regulation includes contents such as the division of management structure and responsibility, condition for test application, test application and screening, test management, and traffic violation and accident handling.

  Test areas will apply, open, and manage classification for each class in stages, and enhance the control of traffic safety risk. This will be the first for regulations on connected car tests in China. Specifically, the Xiangjiang New Area intelligent system test area, having a closed and semi-open road testing environment, will be test area one (stage one). Test area two (stage two) will have an open-road testing environment. Vehicles, pedestrians, and domestic animals will not be prohibited from passing through the area. However, a sign will be installed so that people are aware that they will be entering a road test area. Conditions for test applications are determined by stage. The higher the stage, the conditions for intelligent driving technology becomes stricter. The test subject and vehicle will be tested for a certain time period in test area one. Only after reaching a certain standard, they will be able to proceed to test area two.

Wanxiang 123 53AhVDA battery cell passes nail penetration test

  Wanxiang Group announced that its subsidiary, Wanxiang 123 LLC, has completed the design of the 53AhVDA battery cell. This battery has an energy density of 260 Wh/kg and a high temperature life that reaches more than 1,500 cycles. It has met the GBT-31485-2015 standard and passed the United State Advanced Battery Consortium’s (USABC’s) EUCAR2 nail penetration test. It has been confirmed that the battery will not leak, generate smoke, ignite, nor explode.

SinoHytec’s net profit for 2017 increases by 229% y/y

  On April 26, 2018, SinoHytec, a company which engages in hydrogen fuel cell systems, released its financial performance for 2017. The company’s sales increased by 46.35% y/y to CNY 201 million, net profit increased by 229% y/y to CNY 30.45 million, and earnings per share was CNY 0.71.

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