In 2017, China's new energy vehicle industry continued to grow rapidly, following the national development plan and production and sales targets. According to data from the China Association of Automobile Manufacturers, new energy vehicle production and sales reached nearly 800,000 units, with 794,000 and 777,000 units respectively. This marked a year-on-year increase of 53.8% and 53.3%. By the end of the year, new energy vehicles accounted for 2.7% of the overall automotive market.
Throughout 2017, policy changes and subsidy adjustments kept the industry on edge. Smart cars and autonomous driving became major focuses, with numerous forums and media reports highlighting the rise of new entrants in the sector. New companies emerged, raising significant capital, forming strategic partnerships, and launching innovative models. While some confusion and misdirection occurred, the global shift toward green mobility was clear, and progress accelerated.
Looking ahead to 2018, we analyze eight key areas that will shape the future of China’s new energy vehicle industry, offering insights and perspectives for industry professionals and enthusiasts.
1. **New Energy Vehicle Production and Sales Exceed 1 Million Units**
Since 2015, China has consistently broken records in new energy vehicle production and sales, surprising many both inside and outside the industry. Despite initial doubts about the government’s commitment, the trend has solidified. In 2018, exceeding one million units would mark a significant milestone, showing that the industry is capable of supporting large-scale production.
2. **Pure Electric Strategy Begins to Bear Fruit**
Major players like Ningde Times and Beiqi New Energy are expected to list on the A-share market, signaling the success of the government’s long-term strategy. As the industry matures, fuel cells, plug-in hybrids, and extended-range vehicles may gain more attention as complementary technologies.
3. **Charging Infrastructure Enters High-Growth Phase**
The "chicken or egg" dilemma of charging infrastructure has been a long-standing issue. With the growing number of new energy vehicles, the need for more charging stations has become urgent. Although the current ratio of charging piles to vehicles is still far from ideal, the government is pushing forward, and the charging industry is expected to see rapid growth in the coming years.
4. **Shared Mobility Shows Promise, But Faces Challenges**
Shared car services have improved vehicle utilization and convenience. However, operational challenges such as scaling up and managing fleets are increasing. Companies must innovate and find sustainable business models to stay competitive.
5. **Low-Speed Electric Vehicles Face Regulatory Changes**
Low-speed electric vehicles have grown rapidly due to their affordability and ease of use. However, new subsidy policies and stricter requirements may force some manufacturers out of the market. Those that adapt could see renewed growth, especially in smaller cities.
6. **Taxis and Logistics Vehicles Drive Urban Electrification**
While bus electrification has reached saturation, taxis and logistics vehicles are expected to become the next big wave. Government procurement and urban traffic control will drive this shift, particularly in large cities.
7. **Channel Models Evolve with Innovation**
New energy vehicles have introduced various sales models, from direct sales to dealerships. Different regions require tailored approaches, with direct stores working well in first-tier cities and traditional dealerships serving lower-tier markets better.
8. **Used Car Market and Battery Recycling Gain Momentum**
As early adopters begin to replace their vehicles, the used car market and battery recycling will become critical. Proper management of decommissioned batteries is essential to avoid environmental issues. 2018 presents a good opportunity to establish effective systems in this area.
Shenzhen Kaixuanye Technology Co., Ltd. , https://www.icoilne.com