The following Top 10 news stories CBU/CAR believes reflect the most important events in China’s new energy vehicle market in 2015. – Editor
Beijing suspends license plate lottery for EVs
Beijing authorities announced suspension of license plate lottery for EVs in October and again in December, allowing owners of EVs to immediately register their rides instead of playing the odds with Beijing’s lottery scheme.
The Beijing municipal government plans to allocate 60,000 license plates for EVs in 2016 and 2017, respectively.
China cuts subsidies for NEVs in 2016
China will cut ¥5,000 ($793.7) in subsidies for each battery electric and plug-in hybrid passenger vehicles in 2016, according to an announcement of the Ministry of Finance on December 15.
A battery electric passenger vehicle with a range of 250 km is entitled to a subsidy of ¥55,000. The subsidies for NEVs (excluding fuel-cell battery vehicles) will be cut by 20 percent in 2017-2018 and 40 percent in 2019-2020 from 2016.
China eliminates vehicle and vessel tax on NEVs
China eliminated vehicle and vessel tax on new energy vehicles (NEVs) starting from May 18, according to a joint announcement of the Ministry of Finance, State Administration of Taxation and Ministry of Industry and Information Technology.
NEVs that qualify for the tax break include pure electric commercial vehicles, plug-in hybrid vehicles (including range-extended vehicles) and fuel-cell commercial vehicles. Pure electric and fuel-cell passenger vehicles are not in the category to receive vehicle and vessel tax, and therefore such tax will not be levied on these vehicles.
China incorporates NEV development into Made in China 2025
Annual sales of new energy vehicles will account for at least 5 percent of total automobile demand in China in 2020 and 20 percent in 2025, according to Made in China 2025 released in May.
NEV sales are expected to increase to more than 10 million units in 2030. Local brand NEV sales will be more than 1 million units and market share of the vehicles will reach over 70 percent in 2020. NEV sales will reach 3 million units in 2025 and local brand NEVs’ market share will be over 80 percent.
China will give priority to PHEVs, BEVs and FCVs. Fuel consumption of hybrids (excluding extended-range vehicles) will be cut by 25 percent in 2020. Thirty percent of fuel-cell battery materials and core components will be made domestically in 2020 and the proportion will be increased to 50 percent in 2025 and 70 percent in 2030.
The market share of local brand driver assistance (DA) vehicles, partial automated (PA) vehicles and highly automated (HA) vehicles is expected to reach at least 50 percent in 2025.
China releases EV Charging Infrastructure Development Guidelines
China released the EV Charging Infrastructure Development Guidelines (2015-2020) in October.
According to the Guidelines, the country plans to build 3,850 charging and battery swap stations for buses and 2,500 for taxis, 2,450 charging stations for sanitation and logistics vehicles, 4.3 million charging poles for private EVs, 2,400 urban public charging stations, 500,000 decentralized public charging poles and more than 800 intercity fast charging stations by 2020.
China to give subsidies for charging facility construction
China’s central government will give up to ¥120 million of subsidies to local governments in 2016 on charging facility construction, operation and upgrading if they meet minimum NEV sales requirements, according to a draft plan released for public opinion by five government departments on December 15.
The plan is designed to stimulate the expansion of electric car charging facilities across the country in 2016-2020. As stated in the draft plan, provinces and municipalities are entitled to receive rewards from the top authority, and the higher their NEV sales figures, the larger the rewards.
The financial rewards are not allowed to go to subsidies for purchasing NEVs or operating electric car businesses.
LeTV gets closer to Super Car
LeTV and Aston Martin signed a memorandum of understanding (MOU) on development of connected electric vehicles in Beijing on December 3, getting closer to its dream of building a Super Car.
According to the MOU, the two parties will work together on research projects ranging from connected car technologies through to manufacturing consultation on new electric vehicles.
These technologies are expected to feature in the RapidE, the first ever all-electric Aston Martin vehicle.
LeTV also announced strategic cooperation with Faraday Future (FF), a startup electric car company which unveiled its first vehicle FFZERO1, a hyper electric concept car on January 4 during CES 2016 in Las Vegas. LeTV chairman and founder Jia Yueting is a key investor in FF. The two parties will work together in the fields of automotive technology, the internet, cloud computing and entertainment for the next generation of smart vehicles.
MIIT releases 6th purchase tax-exemption catalogue for NEVs
The Ministry of Industry and Information Technology released the 6th national purchase tax-exemption catalogue for NEVs on November 25.
In the new list of approved BEVs, there are 38 passenger vehicle models including BYD Qin EV and Zotye Sesame E30, 415 buses, 2 trucks and 136 special-purpose vehicles. Former low-speed EV maker Hebei Yogomo Automobile Manufacturing Co., Ltd. (Yogomo) has a BEV model the E Chi in the list.
There are just 9 plug-in hybrid passenger vehicles in the list, all of which are made by BYD and GAC Motor.
NEV production reaches nearly 380,000 units in 2015
China NEV production reached 379,000 units in 2015, up 4 folds from a year earlier, according to statistics released by the Ministry of Industry and Information Technology on January 11, 2016.
Output of battery electric passenger vehicles and plug-in hybrid passenger vehicles was 142,800 and 63,600 units respectively, up 3 folds from the previous year, respectively. Battery electric commercial vehicle production was 147,900 units, an 8-folds year-on-year increase, while output of plug-in hybrid commercial vehicles was 24,600 units, up 79 percent from a year earlier.
China sold 331,092 NEVs in 2015, up an eye-popping 4.4 times from what was sold the previous year, according to data released by China Association of Automobile Manufacturers (CAAM) on January 12, 2016. Output reached 340,471 units, up 4.3 times.
Rise of “internet carmaking”
Several internet giants and startups, including Alibaba, Baidu, Tencent, LeTV, NextEV, Pateo, Youxia Motors and Xiaopeng Motors, announced plans to build electric vehicles or autonomous driving vehicles in 2015, leading to the rise of a hot word “internet carmaking” in the automotive industry.
Baidu announced successful completion of “rigorous, fully-automated tests” of self-driving technology implanted within a modified BMW 3-Series car and establishment of a business unit for autonomous driving technologies in Beijing. It plans to put self-driving vehicles on the road in three years and mass produce them within five years.
LeTV has started cooperation with Faraday Future (FF), a startup electric car company, and luxury car maker Aston Martin in connected EV technologies and solutions.
Youxia released its first electric car the Youxia X on July 26, which is expected to go into mass production and officially hit the market in 2017.
Xiaopeng Motors announced to launch its first electric SUV in mid-2017.