CATARC report - October 2018: NEV trends in China
New energy vehicle production exceeds 110,000 units in September
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 (excluding vehicles equipped with a lead-acid battery) in September 2018 increased by 16.08% month-over-month (m/m), marking a record high for monthly production. A0-segment cars and sport utility vehicles (SUVs) accounted for the majority of the production share of new energy passenger cars. Cruising ranges of core models were 300 km and greater. Production volumes of new energy vehicles in September 2018 for electric vehicles (EVs) and plug-in hybrid vehicles (PHVs) accounted for 76% and 24%, respectively, of the production share. By vehicle type, production volumes of passenger cars, buses, and special-purpose vehicles accounted for 84%, 8% and 8%, respectively, of the share.
Production volumes in China
Production volume of EVs in September 2018 increased by 18.14% m/m. By vehicle type, production volumes of passenger cars increased by 10.36% m/m, buses increased by 117.86% m/m, and special-purpose vehicles increased by 30.49% m/m. Forty-two automakers produced passenger EVs, and BYD Auto Co., Ltd (BYD) was the only automaker that produced more than 10,000 units. By brand, BYD ranked first, followed by Beijing Automotive Industry Holding Co., Ltd. (BAIC). By drive battery, most of the vehicles were equipped with a ternary battery. Thirty-three bus makers produced electric buses. None of the buses were equipped with a ternary battery. Sixty-four vehicle makers produced electric special-purpose vehicles, and Dongfeng Motor Corporation (DFM) was the only maker that produced over 1,000 units. By drive battery, most of the vehicles were equipped with a ternary battery, followed by vehicles equipped with a lithium-iron phosphate battery.
Production volume of PHVs in September 2018 increased by 10.10% m/m. By vehicle type, production volumes of passenger PHVs increased by 11.02% m/m and plug-in hybrid buses declined by 37.47% m/m. Fifteen automakers produced passenger PHVs. By brand, BYD and Roewe ranked first and second, respectively. Six bus makers produced plug-in hybrid buses in September, and Zhengzhou Yutong Bus was the only maker that produced over 100 units. By drive battery, most of the buses were equipped with a lithium-ion manganese-oxide battery. By battery maker, most of the buses were equipped with a battery produced by CITIC Guoan MGL.
Production volume of fuel cell vehicles (FCVs) in September 2018 declined by 60.53% m/m.
Trends in China
MIIT releases 2016 to 2017 subsidy review results for new energy vehicles
On September 25, the Ministry of Industry and Information Technology (MIIT) released the first subsidy review results. According to the review results, a subsidy of approximately CNY 5.09 billion was paid this time. Subsidies for 515,000 vehicles from 2016 and 2017 was paid, including figures made public on September 25, amounting to a total subsidy of CNY 49.83 billion. When adding local subsidies to this subsidy amount, total subsidy for new energy vehicles exceeds CNY 100 billion.
MIIT requests investigation on new energy vehicles for risks
On September 25, the MIIT released a “notice on special investigations for safety issues of new energy passenger cars and cargo trucks”. In addition, the agency requested production companies to investigate whether there were any safety issues with their production vehicles. Main issues to be investigated are as follows: expired IP protection certifications, flooding/immersion of vehicles, collision of vehicles, loose connection of wire harnesses, frequent charging and discharging, neglect of vehicles for a long period of time, and vehicles in poor working/driving environment.
MIIT releases 10th recommended model list for new energy vehicles
On September 30, the MIIT released the “10th recommended model list for the wide spread use of new energy vehicles (2018)”. 104 companies are listed. By model, 194 EV models by 100 companies, six PHV models by five companies, and 11 FCV models by five companies are listed.
Ninety-seven new-energy-vehicle models made it into the “20th list of new energy vehicles exempted from vehicle purchase tax”.
On September 19, the MIIT released the “20th list of new energy vehicles exempted from vehicle purchase tax”. Ninety-seven new-energy-passenger-car models are in the list of which 85 models are passenger EVs and 12 models are passenger PHVs. BYD, SAIC, GM, and Ford models made it in the list.
Chery New Energy acquires authorization to produce passenger EVs
The MIIT released the “MIIT 2018, document No. 41 (311th public notice on vehicle production companies and products). When Chery New Energy Automotive Technology Co., Ltd. acquired authorization to produce vehicles, it became clear that it became the eighth company to be authorized to produce passenger EVs in China.
Chongqing Jinkang New Energy acquires two production authorizations
The MIIT released the “312th public notice on on-road motor-vehicle production companies and products”. Chongqing Sokon Industry Group Stock Co., Ltd.’s wholly owned subsidiary, Chongqing Jinkang New Energy Automobile Co., Ltd., acquired authorization from MIIT to produce vehicles. Chongqing Sokon transferred all of its shares of its subsidiary, SF Motors, to Chongqing Jinkang New Energy on May 31, 2018. Together with the production authorization acquired from the Development and Reform Committee, Chongqing Jinkang New Energy became the ninth automaker to acquire both authorizations.
Guangxi provincial government to support development of new energy vehicles and pay subsidies amounting to 20% of central government’s standard
The government of the Guangxi Zhuang Autonomous Region is taking measures to develop new energy vehicles. The government announced that it would provide incentives to companies that produce new types of new energy vehicles. Furthermore, the government will pay a subsidy of 20%, which is 40% of the central government’s standard, to consumers who purchase a new energy vehicle from 2018 to 2020 in the region. The government will reduce parking fees charged for public parking lots or on-street parking spaces on state-owned properties or invested by the government to half that of the standard parking fee for new energy vehicles registered in the Guangxi Zhuang Autonomous Region.
Beijing municipal government takes initiative to release policy to encourage charging facility operation check
On October 10, according to information obtained from the Beijing Municipal Commission of City Administration, the Beijing municipal government will release a “regulation to encourage the checking of operation of public charging facilities for EVs in Beijing City in 2018 to 2019” in addition to detailed implementation rules. The regulation is to guide companies to strengthen the management of their public charging facility operations so that they can provide safe and stable charging services to users. The government will pay an incentive of CNY 200,000 maximum per facility each year based on the operation status of the public charging station. Daily and annual operation checks will be conducted on the charging facilities, and the maintenance inspection result of the facility must be good throughout the year.
Beijing government approves 31 public charging facilities
The Beijing Municipal Development and Reform Commission approved 31 public charging facilities. New energy vehicle charging equipment will be installed in all areas where many people gather, such as Wangfujing Department Store in Dongcheng District, Carrefour Siyuanqiao Store in Chaoyang District, and Loongson Industrial Park in Haidian District . In addition, according to the response to fund applications for public charging equipment posted on the Beijing Municipal Development and Reform Commission official website, these new charging equipment will cover almost the entire Beijing City area and will be distributed across 10 districts, such as the Haidian District, Chaoyang District, Dongcheng District, Xicheng District, Fengtai District, Tongzhou District, Daxing District, and Fushan District.
5G communication to be weapon for vehicle intellectualization; first 5G town to be developed in Foshan City
Following Shanghai City, Zhejiang Province, Hubei Province, Beijing City, and Hebei Province, Guangdong Province will become a connected-car model district (a major item of the “Made in China 2025“). 5G communication technology will be gradually deployed in the district. Automakers, such as Guangzhou Automobile Group Co., Ltd. (GAC) and Dongfeng Nissan, are currently extensively working to intellectualize vehicles. Emerging automakers, such as Xiaopeng Motors, are also showing interest in connected cars and driverless vehicles. GAC has already signed a strategic alliance with China Mobile South Base to deepen alliances in areas, such as the 4G vehicle network and the 5G in-vehicle communication pre-research.
Acer and Yulong Group develops autonomous EV
According to media reports in Taiwan on September 28, Acer Inc. and Yulong Group Co., Ltd. will collaborate with communication and vehicle industry/academia partners and exhibit the first locally developed autonomous concept EV in Taiwan at the Taiwan Automotive Technology Innovation Summit 2018.
MIIT points out high failure rate of OptimumNano Energy batteries
According to a notice issued by the equipment industry development center of the MIIT to companies that produce new energy vehicles, J&R Optimum Energy has become a subject of investigation for safety issues due to its subsidiary’s (OptimumNano Energy Co., Ltd.) high failure rate of drive batteries.
Baidu and Huawei collaborate in autonomous driving demonstration
On September 27, China Unicom, together with Baidu and Huawei, demonstrated autonomous driving and remote driving based on 5G communication technology at the China International Information Communication Technology Exhibition. For this demonstration, Baidu provided autonomous-driving and remote-driving vehicles, China Unicom installed 5G test networks in Daoxiang Lake Park in north of Beijing City, and Huawei provided 5G communication equipment. With the high bandwidth and low delay of the 5G communication, they were able to control information between the smart driving platform and the line of cars in addition to transmitting data from the high resolution monitoring camera.
Dongfeng Nissan releases Sylphy Zero Emission EV on September 25
Dongfeng Nissan opened pre-orders for the first EV for China─Sylphy Zero Emission─in June 2018 and officially released the vehicle on September 25. Price of the vehicle after subsidy deduction is CNY 166,000. The vehicle is equipped with a permanent magnet synchronous motor, having a maximum output of 80 kW and a maximum torque of 254 Nm. The vehicle also has a cruising range of 338 km.
Tencent and Didi acquires license plate for autonomous driving test on public roads in Beijing City
The Beijing Innovation Center for Mobility Intelligent (BICMI) updated the list of companies authorized to conduct autonomous driving tests on public roads in Beijing City. Two new companies―Tencent and DiDi―were added to the list. Currently, the Beijing municipal government has issued license plates for autonomous driving tests on public roads to seven companies. Three of them are automakers and four are IT companies. Of these companies, Baidu owns the most number of vehicles (25 units) used for autonomous driving tests on public roads, while the others own one or two vehicles.
Alibaba acquires Hangzhou City’s first autonomous vehicle license plate
On September 20, Alibaba unveiled at the Computing Conference its vehicle upgrade strategy that will launch a completely new intelligent highway, using vehicle and road collaboration technology. Currently, Alibaba driverless vehicles are being tested, using vehicle and road collaboration technology, in open areas of Hangzhou City. The Hangzhou municipal government issued its first autonomous vehicle license plate to Alibaba at the Computing Conference.
VW MEB platform model to be produced in China by end of 2020
On September 19, Volkswagen (VW) held a MEB platform media exchange meeting. Thomas Ulbrich, member of the board of directors of VW and responsible for the EV mobility division, stated at the meeting that the MEB platform has an important strategic significance for the VW group. The company will launch an MEB platform-based model in Germany by the end of 2019 and plans to start production in China by 2020.
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