HONG KONG, Sept. 26, 2016 /PRNewswire/ -- With increasing public attention of new energy vehicles (NEVs), Tesla is the most dazzling vehicle manufacturer for its technology and development. Tesla has ambitious plans for the high-end market of NEVs, including joint investments of USD 1 billion with Panasonic in expanding production capacity of power batteries and the introduction of Model S and Model X vehicles. Meanwhile, mainstream manufacturers all announce their participation in the development of "NEVs in China". To compete against Tesla, BMW, and Audi, on September 7, the CEO of Benz China announced that at least six models of electric vehicles (EVs) would be introduced under the Daimler Plan during 2018 and 2024, and Denza would be introduced as a sub brand of NEVs.
According to the China Association of Automobile Manufacturers, domestic and foreign brands currently account for 96% and 4% of the local EVs market respectively, among which, BYD already accounts for 30%. As a business leader in the global market, it beat Tesla in production capacity in 2015, accounting for 11.2% of the global market share. The manufacturers of NEVs in China are currently redefining the market landscape for automobiles.
China's Global Sales of NEVs Rank First, Accounting for More than 30%
Currently, China has replaced the US as the world's largest market for NEVs. In 2015, China manufactured 379,000 NEVs, representing 400% growth year-on-year. For the period ranging from 2009 to 2015, China reported cumulative sales of 448,000 NEVs, accounting for more than 30% of global sales for NEVs. In 2015, however, the US only reported sales of 123,000 alternative fuel vehicles, and the cumulative sales were approximately 400,000 units. In terms of one-year and cumulative sales, China both ranks first in the global market.
To promote NEVs, China has established a comprehensive system of top-down promotion policies. In 2015, China ranked first in terms of production and sales of NEVs, largely driven by the policy system.
Increasing Consumer Awareness Drives the Market Development of NEVs
The enormous market potential and demands in China heat up the domestic market for NEVs. In 2015, sales of NEVs peaked, with the production capacities and sales representing a year-to-year growth of 384% and 343%, among which, electrical passenger vehicles accounted for 54% and 63% of the annual production capacity and sales, respectively. This meant NEVs successfully penetrated the private consumer market. According to research by iResearch, users demonstrate an increasing and apparent acceptance of NEVs due to favorable policies and improvement in both technology and ecofriendly awareness.
Life and Replacement Costs of Batteries as Primary Factors for Ownership of NEVs
Consumers initially knew little about NEVs, but currently show a significantly growing interest in purchasing such vehicles. This is a fairly prolonged process. However, due to emerging "special treatments" for NEVs, including vigorous support from national and local authorities, unrestrictive driving requirements, and a high rate of the license plate lottery system, as well as community-based charging stations and consumers' accurate position of vehicle requirements, consumers finally choose NEVs.
In addition to such factors as macroeconomic policies, consumers stress more importance to product quality of NEVs. According to some researches, the top three factors that consumers take into consideration when purchasing a NEV are: the battery life and replacement costs; driving mileage for one single charge; and configurations of a charging station.
TUV Rheinland's Insight
Governmental policies, market direction, and consumer demands in the China market provide great momentum to promote NEVs. Although NEVs currently have an insignificant market share as compared with traditional vehicles, the market share of 30% by 2020 is a very definite goal. As a growing market in 2012, NEVs, as we could clearly see, had some room for improvement, including battery performance, technological maturity, cost, safety performance (such as discharging and personal safety), and inadequate supporting equipment.
In the automobile industry, NEVs represent a comparatively new subject, so automobile manufacturers and the market are both constantly exploring possibilities. During such process, TUV Rheinland strongly suggests the safety of EVs should be improved in the following aspects:
Previous periods under review:
TUV Rheinland Insight: White Paper on China's Photovoltaic Modules and Components: First Sight into Four Highlights
TUV Rheinland Insight: Most Valued White Paper on Electric Power Tools in the Eyes of Connoisseurs
Contact:
Simon Hung
Section Manager | Marketing Greater China
Tel: +852 2192 1948
Fax: +852 2192 1010
Email: Simon.Hung@tuv.com
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