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China's Other Electric Vehicle Industry

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    China's Other Electric Vehicle Industry


    While the global automotive giants struggle to find a winning formula for electric vehicles (“EVs”), approximately 100 manufacturers in China have already identified a large potential market undiscovered by the traditional players. The common problems faced by EV automakers — high cost, driving range, and the availability of charging stations — are not issues for these manufacturers because their target customers are satisfied with low-speed and limited range EVs, as long as they provide affordable transportation. In 2014, 400,000 so-called “low-speed” EVs were sold in China, compared to only 84,000 conventional all electric and hybrid electric vehicles.
    Despite the fact that China is now the world’s largest vehicle market, accounting for over 25 percent of the vehicles produced globally every year, vehicle penetration is still exceedingly low. Compared to the United States where there are more than 800 vehicles for every 1,000 people, there are just over 100 vehicles per 1,000 in China. Many of those without cars live in China’s Tier 2, Tier 3 and Tier 4 cities, as well as in the country’s urban fringes and rural areas. For this set of consumers, a high rate of speed is not necessary, nor is a long driving range. Instead, these consumers simply want an affordable car that can be used to get around town, or perhaps as a second car.
    How big is this potential market? It’s estimated that there are over 90 million motorcycles and 120 million electric bicycles now being utilized in China. Subject to affordability, all of the individuals using these forms of transportation are potential buyers of low-speed EVs, and Chinese companies are expanding aggressively to fill the growing demand. There are already at least one million low-speed EVs in use in China, and companies in the industry expect sales to increase by at least 50 percent and top 600,000 units in 2015, and to reach at least one million units by 2020. In fact, some industry observers believe that the one million mark could be achieved within a year or two, and that as many as three million low-speed EVs will be sold in 2020, generating revenue of RMB 100 billion ($16.1 billion).
    By definition, low-speed EVs have a top speed of 80 kilometers, or 48 miles, per hour. Because they are designed for short, quick trips around the city, the distance that can be traveled on a single charge is also not an issue. Once the requirements for speed and range are relaxed, a much lower-cost lead acid battery, rather than an expensive lithium ion battery, can be used. As a result, low-speed EVs can be sold profitably for between $3,000 and $8,000 per car. In addition to substantially reducing the cost, using a lead acid battery also greatly simplifies the charging issue. Lead acid batteries can be charged using regular electricity outlets and do not require expensive, specially constructed charging stations.

    In addition to consumers who want affordable mobility, China’s local governments are also encouraging the use of low-speed EVs. While city officials would like their citizens to have greater access to cars, they do not like the air pollution that goes hand in hand with more cars being driven on city streets. In particular, provincial and city officials in Shandong, Jiangsu, Zhejiang, Guangdong, and Henan provinces appear to be taking the lead in using local regulations to encourage the use of low-speed EVs. Shandong Province, where approximately 25 percent of the low-speed manufacturers are located, has issued a regional industry standard for these EVs and is reportedly working together with insurance companies to ensure coverage.
    Low-speed EVs are quickly becoming a big business in China. According to industry players, China’s low-speed EV companies had invested approximately RMB 15 billion ($2.4 billion) in manufacturing capacity by the end of 2013. The 22 low-speed EV manufacturers in Shandong Province alone sold 187,000 units in 2014, realizing sales of RMB 6.5 billion ($1.1 billion), or almost RMB 35,000 ($5,600) per vehicle.
    Recommended by Forbes

    One of the better known low-speed EV manufacturers is Xindayang Group Co., an electric motor company based in the city of Linyi in Shandong Province, which began producing electric cars in 2006. Xindayang, which has a 30,000 unit factory in Linyi and a 100,000 unit facility in the northwest city of Lanzhou, recently announced a plan to build a 300,000-unit plant in the eastern city of Ningbo, in partnership with Zhejiang Geely Holding Group Co., a Chinese car maker best known for its acquisition of Volvo, and GSR Ventures, a Beijing-based venture capital firm.
    One potential roadblock facing China’s low-speed EV manufacturers is obtaining Beijing’s blessing. Despite their consumer appeal and provincial support, low-speed EVs are not officially recognized by China’s Central Government and are not counted in the official automotive statistics. The Beijing authorities do not currently have specific regulations for low-speed EVs, but are expected to issue regulations in 2015 covering items such as maximum speed, collision standards, insurance, the level of roads where low-speed EVs will be permitted, the license requirements for operators, and the type of license plate that will be issued.
    Low-speed EVs may not fit the stereotype of today’s modern passenger car, but in China, where incomes remain low for a large part of the country’s population, affordability often trumps those values held dear in more developed countries.

    http://www.forbes.com/sites/jackper...other-electric-vehicle-industry/#2a2b72a02f9b

    Surely this market segment would be an ideal place to start for the Ultrabattery?


    China Leads Electric Vehicle Market (BEV, PHEV) 2020 Forecasts, say New Research Reports

    Apr 21, 2016, 22:00 ET from ReportsnReports


    PUNE, India, April 22, 2016 /PRNewswire/ --
    ReportsnReports.com adds "Global and China Electric Vehicle (BEV, PHEV) Industry Report, 2016-2020" and "China Battery Electric Logistics Vehicle Industry Report, 2016-2020" with 2020 Forecasts to its online business intelligence library.
    In 2015, global and Chinese electric vehicle markets were still in the accelerated growth phase; wherein, the global electric vehicle (EV & PHEV) sales volume reached 549,000, increasing by 72.83% year on year; China sold 331,100 electric vehicles, with a year-on-year surge of 343%. From January to February of 2016, the sales volume in China totaled 35,700, going up 1.7 times year on year and marking the sustainable growth.
    Affected by multiple factors such as environmental requirements, new technologies and business promotion, the future global and Chinese electric vehicle markets will maintain a rapid development pace. Global and China's sales volume is expected to exceed the 2 million mark in 2019 and 2020 respectively, and China will become the world's leading electric vehicle (EV & PHEV) market.


    Passenger Vehicle Market: The demand for plug-in hybrid vehicles which are more in line with the current consumer habits is growing radically, with a rising market share. In 2015, the sales volume amounted to 63,700, with 30.8% market share; in the first two months of 2016, it climbed to 9,727 with 41.2% market share. Chinese plug-in hybrid passenger vehicle manufacturers mainly refer to BYD, SAIC Roewe, GAC Trumpchi, BMW Brilliance, Volvo and the like. With two models --- Qin and Tang, BYD garners the overwhelming share in this market, namely 79% in 2015 and 80% in the first two months of 2016. In future, joint ventures will perform more actively; FAW-Volkswagen (Golf plug-in, Bora plug-in, Magotan plug-in), Shanghai GM (LaCrosse plug-in), Honda (Accord plug-in), Dongfeng Peugeot, Dongfeng Yulong, DongfengYueda Kia (K5 plug-in) plan to launch plug-in hybrid models in 2020.

    Chinese Electric Vehicle Manufacturers are SAIC Motor, FAW Group, Dongfeng Motor Corporation, BYD, Changan Automobile, Chery Automobile, GEELY, BAIC Group, GAC Group, Brilliance Auto, Great Wall Motor, JAC and Zotye. Order a copy of Global and China Electric Vehicle (BEV, PHEV) Industry Report, 2016-2020 at http://www.reportsnreports.com/purchase.aspx?name=524024 .


    Bus Market: The output escalated 313% year on year to 112,400 in 2015 and rose 39.48% year on year to 4,430 in the first two months of 2016. The main reason for the slowing growth rate lied in adjusted subsidies. Currently, the market is primarily promoted by the government and subsidies, and the market size will reach about 200,000 buses in 2020. In 2015, main players in this market embraced Yutong Bus, Xiamen King Long Motor Group (including three wholly-owned subsidiaries: Higer Bus, Xiamen King Long United Automotive Industry, Xiamen Golden Dragon Bus), Zhongtong Bus, etc.. In 2016, the changes in subsidies will encourage bus companies to prioritize high-performance products with more than 8 meters.


    Special Purpose Vehicle Market: The output soared 10.7 times year on year to 47,800 in 2015; in the first two months of 2016, the output jumped by 115.55% year on year to 804. The future growth of segments will be mainly dependent on the rapid development of the logistics industry and the swelling demand for urban logistics vehicles. In 2015, Dongfeng Motor ranked first in the market, with 13.91% market share. BAIC, SAIC, BYD, Yutong and other powerful companies have also targeted this market, which will intensify the market competition.


    Another latest research titled China Battery Electric Logistics Vehicle Industry Report, 2016-2020 says that china produced 379,000 new energy vehicles (occupying 1.5% of the total vehicle output) in 2015, a fourfold increase from a year ago, including 142,800 Battery Electric passenger vehicles and 63,600 plug-in hybrid passenger vehicles, both increasing three times year-on-year, 147,900 Battery Electric commercial vehicles, an increase of eight times from 2014, and 24,600 plug-in hybrid commercial vehicles, surging by 79% compared with the previous year. Up to now, the new energy vehicle ownership has approached 500,000 units in China, basically accomplishing the goal set in 2012. It is expected that EV ownership will exceed 5 million units in 2020.
    In 2015, the annual output of Battery Electric logistics vehicles in China skyrocketed by 1,416% year on year to 45,700 units. The explosive growth was mainly reflected in the second half of 2015, especially December 2015 when the output reached 23,600 units. In 2016, the output is expected to hit 90,000 units. In 2016-2018, the fast-growing Chinese Battery Electric logistics vehicle market will slow down the pace with the CAGR of about 50%.
    At present, China Battery Electric logistics vehicle industry is featured with relatively high market concentration. In 2015, 13 companies achieved the output of over 1,000 units each, of which Dongfeng Motor seized 14.3% market share with 6,525 units, followed by Chongqing Ruichi, Shaanxi Tongjia and Chongqing Lifan.

    Battery Electric Logistics Vehicle Manufacturers are Dongfeng Motor, Chongqing Ruichi, Shaanxi Tongjia Automobile, Chongqing Lifan, Jiangsu Aoxin New Energy, GuohongCar, BAIC Motor, NLM Motor, Wuhu Bodge Automobile and Tianjin Qingyuan Electric Vehicle.

    Browse complete report at http://www.reportsnreports.com/repo...istics-vehicle-industry-report-2016-2020.html .

    Top BMW i Engineers Leave For Chinese EV Startup

    The new startup is apparently called Future Mobility Corporation. The company is being backed by Tencent Holdings.

    http://cleantechnica.com/2016/04/23/top-bmw-engineers-leave-chinese-ev-startup/


    Taiwan's Hon Hai Precision Industry Co Ltd, better known as Foxconn, on Monday said it has partnered Chinese social networker Tencent Holdings Ltd to develop opportunities related to electric vehicles, marking the latest tech foray into "smart" cars.
    Foxconn, WeChat operator Tencent and luxury car dealer China Harmony Auto Holding Ltd signed an agreement to work together in the Chinese city of Zhengzhou, Henan province, the contract manufacturer said without detailing specifics.
    The partnership would put Tencent on a par with online peers Alibaba Group Holding Ltd and Baidu Inc, which have already moved into the nascent market for Internet-connected cars vie tie-ups with major auto makers.
    Foxconn said the coalition would form a working team drawing on its manufacturing capabilities, Tencent's Internet platform and China Harmony Auto's dealership network, to explore commercial possibilities in smart electric vehicles.
    Foxconn announced an investment of over $800M to build electric cars in China in 2014.

    http://www.electric-vehiclenews.com/2015/03/foxconn-partners-with-tencent-in.html

    Given the share numbers of EV manufacturers in China, Ionic Industries must be some chance of securing a Chinese cornerstone investor, for its energy storage Technology IMHO.


    Raider
 
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