China is already the largest market for electric vehicles and light trucks; According to the China Automobile Industry Association, the production and sales of new energy vehicles in 2017 have reached 794000 and 777000 respectively, with a year-on-year increase of 53.8% and 53.3%. However, China is still dissatisfied with the current growth rate and believes that the transformation of electric vehicles will help to control air quality problems and reduce dependence on imported oil. To this end, the Chinese government has changed the direction of electric vehicle planning. In September 2017, the Chinese government announced new regulations, forcing manufacturers to guarantee that 10% of sales must be electric vehicles by 2019 and to increase to 12% a year later. This provision replaces the problematic subsidy scheme and has a credit score system, which will vary according to the series and performance of each electric vehicle. If the credit is not enough, the company will pay a fine of $3500 for each old car on sale.
Spread risk
For example, the old-fashioned electric vehicle engine was restricted in Shenzhen and other cities in China. But the quota system is somewhat radical, in fact ordering some carmakers to abandon their production lines. China wants to increase the proportion of electric vehicles in car sales to 20% by 2025 and 50% by 2030. Manufacturers reacted quickly and wanted to keep up with this goal. Some companies even wavered in joint ventures. For example, Ford recently plans to end its joint venture with Chang'an company and then establish a partnership with Zhongtai to manufacture electric vehicles on a new production line. Zhongtai automobile, headquartered in Zhejiang Province, south of Shanghai, is famous for the success of Porsche Macan SUV. But according to the global sales comprehensive website bestsellingcarblog According to the data released by COM in October, the small car E200 produced by Zhongtai has become the sixth best-selling car in China. If approved, Ford and Zhongtai will open a new factory in Zhejiang Province. Ford predicts that by 2025, there will be more than 4 million electric vehicles in China's market. Volkswagen has established a joint venture JAC with Anhui Jianghuai Automobile Group to manufacture electric vehicles, which is Volkswagen's third joint venture in China. In addition, BMW is said to be signing a contract with great wall motor to produce mini electric vehicles instead of its current partner Brilliance. Other carmakers, such as Renault and Nissan, are also trying to make joint ventures to make electric vehicles. The company has established EGT new energy vehicle company with Dongfeng Motor, and will manufacture small SUV electric vehicles in 2019, which may be a version of India's kwid small car. Taking advantage of its cooperation with SAIC, GM CEO Mary Barra said that the joint venture will strive to add electric vehicles to almost all series sold in China by 2025. These new partnerships may be a better choice. Michael Dunne, chairman of dunneautomotive, said on Lingying's website, "there are two excellent advantages to change with different ideas. First, the company can get a lot of electrification reputation scores through the electric vehicle joint venture. Second, they may make better use of the new partnership in the future. The growing competition for the sales of electric vehicles has driven the development of the leveler industry.
Expand attraction
No way to spread risk can match the manufacturer's full financial preparation, at least when the manufacturing cost of electric vehicles is higher than that of traditional internal combustion engine vehicles. China encourages electric vehicles, even at the expense of the interests of automobile manufacturers. Financial Times reported Bernstein research data in December, showing that manufacturers will lose $4500 per electric vehicle by 2020, when the purchase subsidy will be cancelled. Dunne predicted, "in the past few years, everyone will lose money on electric vehicles, thousands of dollars per car, and many emerging companies will go bankrupt." New electric vehicle companies have been bewitched by the subsidy policy launched in 2009, and Dunne predicts that China will increase by $60 billion to encourage electric vehicle sales by 2020, although long electric vehicles (larger batteries) are more popular. Baojun E100 two seater car is a great success, which is a joint venture between general motors and SAIC. This prompted foreign companies to choose small cars in order to occupy the market. However, the Chinese government hopes that manufacturers will focus on a broader level, not just urban vehicles. The subsidy policy has set off a thousand waves in the original automobile manufacturers and new companies, scrambling to invest in new technologies. According to the news published by Nanfang Daily in January, 160 companies registered to manufacture new energy vehicles in early 2017. The protagonist in the news is an electric vehicle manufacturer called Suda. In 2010, the company opened a factory in Sanmenxia, Henan Province, but the sales volume in the next six years was not optimistic. Suda did this for one benefit only: the company is one of 15 new companies approved by the national development and Reform Commission (NDRC) to start producing new energy vehicles in March 2016. The list also includes the joint venture between Volkswagen and JAC, as well as the new companies of Chery and BAIC motor, as well as many unknown brands, such as Suda automobile and Swedish new energy vehicle company, which purchased Saab assets from general motors, but did not include the name. For example, in October 2017, BYD and its new electric car manufacturers have been ranked as the top cities in the electric car market. However, emerging companies that lack electric vehicle licenses, such as NiO, which launched es8suv electric vehicles in late 2017, and byton. The latter will also compete with Tesla for alpine, and Renault experts may become an obstacle. Some companies with insufficient funds can cooperate with some companies after they have a license. Mahatma has sufficient funds. Generally, these companies will choose Mahatma to purchase the leveling machine, and then make installment payment to save working capital.
Chinese enterprises benefit
Tesla said in an interview that it would establish wholly foreign-funded factories in China's free trade zone. The disadvantage of manufacturing cars in the free zone is that it still has to pay 25% import tariff, but it benefits Polaris Volvo's new high-end electric vehicle brand. The company has a manufacturing plant in Chengdu. Last year, the company launched a low-yield plug-in hybrid sports car called polestar1, and plans to launch an all electric car in 2019. One of the consequences of the implementation of electric vehicles is to make China's battery manufacturers rich. Roland Berger reported that 90% of the batteries of electric vehicles sold in China are the results of Chinese manufacturers. Therefore, it is not surprising that foreign manufacturers such as Panasonic, LGChem and Samsung are excluded from the scope of state subsidies for automotive power, although the batteries of these companies are also manufactured in China. This has made Chinese manufacturers rich. Rolandberger predicts that BYD and catl will become the third largest battery market share owners after Panasonic and LGChem by 2019, with a global market share of 9%. China's Lishen company will rank fifth after Samsung, while Wanxiang (parent company of a123system and karma automotive) ranks seventh. Manufacturers regard batteries as commodities, so some manufacturers are implied to supply them. For example, GM is considering changing its supplier from LGChem to A123 systems. Electric hardware suppliers are making efforts to enhance their strength in China. For example, Magna of Canada will cooperate with Huayu (a branch of Shanghai Automobile Company) to manufacture motors. With China stepping up the pace of promoting the national plan, unexpected legal events will emerge one after another. But as usual, carmakers are willing to accept this difficulty and continue to move towards the world's largest auto market.
China's emerging electric vehicle companies
China's new electric vehicle companies are blooming, but only 15 companies have obtained the government's production license. BAIC bjev, an electric vehicle manufacturing company under BAIC Motor Corporation, was founded in 2009 and manufactures many electric vehicle series. Therefore, the license must be a new company. Changjiang evpart, a subsidiary of Wulong electric vehicle group, also manufactures batteries and electric buses. The company is headquartered in Hangzhou, Zhejiang Province. Chery new energy vehicle (cherynev), Chery is one of the largest state-owned automobile manufacturers in China. It manufactures many electric vehicles, so it is also a new company in the license. Shenzhen land ark electric vehicle (greenwheelev), said on the company's official website that the company manufactures electric buses, vans and electric vehicles. Nezha new energy vehicle (horizon nev), China automotive information reported that the company launched an electric SUV concept car in Jiaxing, Zhejiang Province in 2016, and the factory was completed in 2019. Jacvw group, which is likely to be the largest company, signed an agreement in June to manufacture electric vehicles and provide mobile services. The first car is scheduled for production in 2018. Jinkang nev is controlled by Chongqing Xiaokang industrial group, an expert in small van production and the parent company of sfmotors, an emerging electric vehicle company. JMC new energy, an electric vehicle production company under JMC, is headquartered in Nancheng, Jiangxi Province. The company's light trucks are very famous and will be launched under the brand of "blade electric" in the future.
Min'an auto, a subsidiary of minth group, an automobile exterior decoration supplier, is one of the first companies to obtain the production license of electric vehicles. Sweden's new energy vehicle Sweden, which bought Saab assets from general motors, does not include the car name. The concept car exhibited by the company is made on the basis of saab9-3 car. Qiantu, behind the company is Beijing Great Wall Huaguan. The company has set an ambitious goal to enter the American market and is expected to launch a super sports car in the near future. Suda is headquartered in Sanmenxia, Henan Province. The company has exhibited several small electric vehicles. Although they were formed as early as 2010, they have not been put into production. Wanxiang Group is one of the largest auto suppliers in China, headquartered in Hangzhou, Zhejiang Province. The company has battery manufacturing company A123 systems and electric vehicle brand karma. The company produces karma cars in California, but there is no such car in China. Yundu new energy vehicle (YUDO), headquartered in Putian City, Fujian Province in the south of China, launched the electric SUV yudopi1 in August 2017. Zhidou has become one of the largest electric vehicle manufacturers.
