China’s automobile sales volume in September reached 2.655 million, up 12.8% year-on-year, and the cumulative sales volume from January to September was 17.116 million, down 6.9% year-on-year, according to China Association of Automobile Manufacturers (CAAM).
China Electric Vehicles (EV) Market
On December 28, 2018, the PRC State Administration for Market Regulation and the PRC National Standardization Administration jointly issued the Electric Vehicle Energy Consumption Standards, effective on July 1, 2019, to regulate electric vehicles regarding their energy efficiency.
In certain cities in China, municipal governments impose quotas and lottery or bidding systems to limit the number of license plates issued to ICE vehicles, but exempt NEVs from these restrictions to incentivize the development of the NEV market.
Nevertheless, in January 2018, the Beijing municipal government announced that it would only allow BEVs to be considered the NEVs exempt from the license plate restrictions, and EREVs would be treated as ICE vehicles in Beijing for the purposes of obtaining license plates.
On December 10, 2018, the National Development and Reform Commission, or the NDRC, promulgated the Provisions on Administration of Investment in Automotive Industry, effective on January 10, 2019, which categorize EREVs as electric vehicles, although its impact on the Beijing municipal government's license plate policy remained uncertain.
China is both the largest passenger vehicle market and the largest NEV market in the world as measured by sales volume. China's NEV market is currently skewed towards BEVs, as 81.3% of the NEVs sold in China in 2019 were BEVs, according to the CIC Report.
As of December 31, 2019, fewer than 25% of families in first-tier cities in China had parking space suitable for installing home charging stalls, compared with over 70% of families in the United States, according to the CIC Report.
As a result, a substantial number of BEV owners in China have to rely on public charging infrastructure. As of December 31, 2019, the ratio of NEV parc to public fast charging stalls was 17.7 to 1, according to the CIC Report. This demonstrates the insufficient number of public fast charging stalls in China to support the growth of BEVs.
In April 2020, the PRC Ministry of Finance and other national regulatory authorities issued a circular to extend the original end date of subsidies for NEV purchasers to the end of 2022 and reduce the amount of subsidies in 10% increments each year commencing from 2020.
However, only NEVs with an MSRP of RMB300,000 or less before subsidies are eligible for such subsidies starting from July 2020
SAIC Volkswagen ranks highest in NEV new-vehicle quality among all brands in the PHEV segment in China, followed by BMW, while NIO ranks highest among all brands in the BEV segment, followed by Tesla, according to a JD Power report. As the New Energy Vehicle (NEV) market in China gets in the fast lane, the […]
Baidu displayed Fully Automated Driving during Baidu World 2020 on 15 September 2020, the company’s annual technology conference that was held in cooperation with CCTV.
Chinese electric vehicle (EV) manufacturer XPeng hopes to raise up to $1.11 billion in its IPO in New York. It said on 21 August 2020 it intends to sell 85 million shares American depositary share (ADS), each representing two class A ordinary share, priced between $11 and $13 per share.
In the second quarter of 2020, NIU sold 160,138 e-scooters, representing a 61.2% year-over-year growth. The number of e-scooters sold in China market reached 154,959, representing an 81.0% year-over-year growth.
NIO delivered 4,708 vehicles in September 2020 and 12,206 vehicles in the third quarter of 2020, increasing by 133.2% 154.3% year-over-year respectively, according to its official announcement on 2 October 2020.
While electric vehicles only accounted for 2.6% of global car sales last year, this is an all-time high for the industry. It’s been growing steadily at a rate of about 40% each year, so don’t count the EV market as a lost cause yet! China EV Industry Overview Since electric vehicles made their way on to the […]
Meituan-bakced EV Li Auto aims to raise US$950 million in its initial public offering of 95,000,000 American depositary shares, or ADSs. Li Auto anticipates that the IPO price per ADS will be between US$8.00 and US$10.00.