(1) Battery electric vehicles saw a slowdown in growth and a decrease in market share.

In 2015, the sales volume of plug-in hybrid electric vehicles was slightly higher than that of battery electric vehicles. However, since 2016, the sales volume of battery electric vehicles had tripled while the sales volume of plug-in hybrid electric vehicles increased slightly. Despite that the subsidies for new energy vehicles were reduced in 2018, the subsidies for battery electric vehicles with a driving range of more than 300 km were raised. Many manufacturers took advantages of policy loopholes to produce battery electric vehicles with a driving range of 301 km. Therefore, the sales volume of battery electric vehicles grew fast in 2018 but the growth rate slowed down compared with the previous years.

The moderation of growth also led to a decrease in market share. Although battery electric vehicles dominate the new energy vehicle market, the market share of battery electric vehicles in new energy vehicles decreased by 4.61 percentage points from 80.14% in 2017 to 75.53% in 2018.

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 (2) The sales volume of plug-in hybrid electric vehicles soared.

Statistics show that the growth in the sales volume of plug-in hybrid electric vehicles reached 134.60% in 2018 while it was only 41% in 2017. The surge was probably attributable to the following factors:

First, a small number of models of plug-in hybrid electric vehicles were marketed in 2017 while several popular models of plug-in hybrid electric vehicles were launched in 2018.

Second, as affected by the stock and real estate markets, more consumers tightened their purse strings to choose plug-in hybrid electric vehicles that have wider applications than battery electric vehicles do.

Third, the subsidies for each plug-in hybrid electric vehicle declined by CNY 2,000 only compared to 2017. Therefore, the number of potential consumers of plug-in hybrid electric vehicles did not decrease dramatically.

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 (3) Consumers were more rational when buying new energy vehicles.

In 2018, the sales volume of battery electric minicars was 332,400 units, accounting for 44.32% of the sales volume of battery electric passenger vehicles. The proportion was lower than 67% in 2017. In contrast, both battery and plug-in hybrid electric compact cars (sedans and SUVs) captured a larger market share compared to 2017. Instead of buying new energy vehicles merely for a free license plate, consumers tend to focus on practicability. As consumers become more rational, the new energy vehicle market is more market-driven than policy-driven.

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The post Analysis on Three Trends of China’s New Energy Vehicle Market in 2018 first appeared on CRI Report.

Research Report on China’s Li-ion Power Battery Industry, 2018-2022

The global market of lithium battery cathode materials presents a landscape of tripartite China-South Korea-Japan competition. By market size, Chinese enterprises of lithium battery cathode materials take up the largest market share, according to CRI.

However, Japan and Europe have the most advanced technologies, followed by South Korea and China. With large-scale production, China is narrowing the gap with advanced countries in cathode material technologies.

Research Report on China’s Li-ion Power Battery Industry, 2018-2022

The industrial chain of lithium batteries mainly covers lithium raw materials, cathode materials, anode materials, electrolytes, separators and production equipment. Cathode materials accounts for a large proportion of the mass of lithium batteries. (The proportion of cathode materials to anode materials is 3:1 to 4:1.) In addition, cathode materials account for 25% to 30% of the costs of lithium battery production.

Research Report on China’s Li-ion Power Battery Industry, 2018-2022

In 2017, the sales volume of new energy vehicles in major countries totaled 1.42 million units. And the production volume and sales volume of new energy vehicles in China reached 794,000 units and 777,000 units respectively, registering YOY growth of 53.60% and 53.30% respectively. The installed capacity of power batteries in China was about 33.55GWh. According to the annual reports of the lithium battery enterprises surveyed, some enterprises keep a large stock of power batteries.

In 2017, there were significant increases in the prices of lithium and cobalt, the key raw materials of lithium-ion batteries, which brought tremendous pressure to battery manufacturers. To reduce the production costs of power batteries to 1 CNY/Wh by 2020, many enterprises invest in key battery resources and other upstream industries.

Research Report on China’s Li-ion Power Battery Industry, 2018-2022

The post Overview of China Lithium Battery Cathode Material Industry first appeared on CRI Report.

The 2017 Guangzhou International Auto Exhibition was opened in China Import & Export Commodity Trade Fair Pavilion in Guangzhou on November 17, 2017, which lasted for ten days and ended on November 26, 2017. The exhibition was exclusively open to the press on November 17 (Press Day) and exclusively open to professional audience on November 18 and 19 (Professional Audience Days). Ordinary audience and professional audience could visit the exhibition from November 20 to November 26. The entire exhibition covered an area of 220,000 square meters, with items on display covering various types of passenger vehicles, caravans, concept electric vehicles, recreational vehicles, automotive components and parts, automotive new materials, automobile designs and technologies. There were 670,000 audience and 603 exhibitors participating in this exhibition.

According to CRI’ observation on the exhibition, this exhibition set “new technology, new life” as a theme, attracting European, American, Japanese and South Korean automotive groups (e.g. Benz, BMW, Volkswagen, General Motors, Ford, Toyota and Honda) to display their intelligent driving technologies at the forefront. Meanwhile, important domestic automobile enterprises (e.g. FAW, Dongfeng, Changan, SAIC, GAC and Geely) as well participated in this exhibition to present good quality of Chinese-made automobiles. Top premium brands and high-end brands of recreational vehicles continued to take part as manufacturers, forming a luxurious team of exhibitors. Notably, three new brands, Alfa Romeo, LYNK&CO and SWM, were attracted to join in this exhibition. There were 54 new vehicle models in total, not only feasting audience’s eyes but also providing more choices for people with intentions to purchase new vehicles.

With relevant policies continuously published, developing new-energy automobiles, especially electric automobiles, has been a national strategy. China’s central and local governments continue to provide stronger supports for new-energy automobiles. Relevant ministries and commissions issued a few of favorable policies in succession and guaranteed their concrete implementation, which served as a driving force of the development of new-energy automobiles.

Interviews by CRI suggested that the zone of electric automobiles was located in 10.2 and 11.2 zones, which was doubled in size that the previous exhibition, covering an area of 20,000 square meters. Mainstream electric automobile enterprises at home and abroad, including Porsche, Benz, BMW, Audi, General Motors, Volkswagen, Toyota, Renault, DongFeng, Changan, GAC, SAIC, BAIC, BYD, Chery, Geely, Brilliance, Great Wall, JAC, Qichen and Zhidou, all participated in this exhibition with their latest electric vehicle models, displaying more than 60 vehicles and covering mainstream electric vehicles on the market. It is notable that Tesla who was absent from both Chengdu and Shanghai Auto Exhibitions appeared in Guangzhou exhibition with MODEL X and MODEL S equipped with charging interfaces of new national standard. Tesla was reported to reconstruct super-charging piles in super-charging networks in Mainland China in addition to charging piles in destination charging networks, reconstructing them with charging interfaces of “new national standard”. This reconstruction is expected to be completed in spring in 2018. Until now, Tesla has established more than 700 super-charging piles in 170 cities in China and intend to set up over 1,000 super-charging piles by the end of this year.

CRI analyzes that hybrid vehicles will be a mainstream development trend in China’s auto industry in the next 5-10 years. Specifically, accelerating the application of lighter new materials is a significant direction of developing the energy-saving and new-energy auto industry. Zoe, CRI analyst, considers that two factors are primarily attributable to this successful exhibition. The first factor is that the exhibition theme aligns with the industry development trend. The other one is that customers are attaching more importance to Chinese domestic automobile enterprises. Currently, China’s new-energy automobile industry develops at a transitional stage with hybrid vehicles as a mainstream. The sales volume of automobiles increased from 19.31 million in 2012 to 28.03 million in 2016 in China at a CAGR of approximately 9.8%. In terms of new-energy automobiles, the sales volume of hybrid vehicles and battery electric vehicles increased from 13,000 in 2012 to 507,000 in 2016, representing a CAGR of 150%. However, China’s new-energy automobile market exhibits some problems. For example, there is a shortage in supportive infrastructures like charging stations and sales increase is mainly driven by government subsidies. CRI recommends that automobile enterprises should speed up the layout of supportive industries (e.g. charging facilities) along with promoting new-energy automobiles with high cost performances. Only when promoting the development of the new-energy automobile industry from a market aspect, the era of new-energy automobiles will indeed approach.

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The post New-energy Automobiles being a Development Trend- Review of Guangzhou International Auto Exhibition, 2017 first appeared on CRI Report.

The post New Market Features in China Automobile Industry in 2017 first appeared on CRI Report.

In 2016, the global sales volume of new energy passenger vehicles was 774,000, which increased by 40% YOY, accounting for 0.85%. The proportion of new energy passenger vehicles was estimated to increase to 1% in 2017. The sales volume of Nissan Leaf, Tesla Model S, BYD Tang ranked the top three, respectively. China is the world’s largest consumer of new energy passenger vehicles, with the sales volume of 11 vehicle models ranked the top 20 in the global market. In 2016, the sales volume of battery electric vehicles accounted for 64% and that of plug-in vehicles accounted for 36% in the global market.

Automobile Enterprise Overview

In 2016, BYD sold 100,000new energy passenger vehicles, which had been the largest seller of new energy passenger vehicles in the global market for two consecutive years. It is estimated that BYD is going to introduce over five new models in 2017, further strengthening its market status. The sales volume of Tesla was 76,000 in 2016, ranking the second in automobile industry, which mainly benefited from the rising sales of Model S and Model X. BMW sold 62,000 new energy passenger vehicles in 2016, entering the global top three for the first time. The sales volume of BMW new energy passenger vehicles accounted for 3% of the total sales volume, and is much higher than the global average level, which shows its powerful product development and recognition. Besides, it is estimated that the sales volume of BMW new energy passenger vehicles is likely to reach 100,000.

In 2016, the sales volume of new energy passenger vehicles was 350,000, increasing by 70% YOY, which accounted for 1.45% of the nationwide sales volume. In 2016, the sales volume of new energy passenger vehicles was 159,000, and the sales volume in the second half year accelerated with the new models coming into the market. In 2016, the sales volume of new energy passenger vehicles was 46,000, accounting for 29.5%, among which PHEV was the best seller. In 2016, the sales volume of new energy passenger vehicles was 22,000, accounting for a very low proportion. In 2016, the sales volume of new energy passenger vehicles was 34,000, increasing stably and accounting for 1.7%. Renault Zoe was the best seller of the year. In 2016, the sales volume of new energy passenger vehicles was 27,000, which was relatively flat. The sales volume of BMW i3 and Renault Zoe ranked the top.

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The post Analysis on Sales Volume of New Energy Vehicles in China, 2016 first appeared on CRI Report.