WPS Presentation

The Chinese New Energy Vehicle Market and Future Development ProspectsWeixing ZhouFerris State University

Golden Age: Fast developmentSince the end of 2008, China has taken the place of the United States as the largest car market By the end of 2009, car sales surpass the total Western European Areas

top three concernsTop three concerns that prevent many consumers from buying an EV:UnfamiliarityHigh price Immature technology

Changesthe Chinese government decided to take some actions. Subsidies, tax reductions, free registration, etc.Take restrictions for the buyers to purchase gas-powered vehicles.

2015 China Electric Vehicle SalesThe sales number in the first nine months almost quadruple the sales number from last year. The electric vehicle giant Tesla has sold only about 100,000 units since the company was established.

Source: from China Association of Automobile Manufacturers

U.S. EV and PHEV salesMeanwhile, U.S. EV and PHEV sales were decreasing by 7% during 2015 due to low fuel prices

Electric vehicle sales. Reprinted from Electric Drive Transportation Association

Benefits for Developing the NEVsOptimizing its energy dependency Environmental pollutionsChallenge other global competitors

the Chinese auto industry and market characteristics

1. Dilemma: short of resources vs wasting of energy.

2. Diversity of Climate

3. Copying Designs

4. Cross joint-ventures

5. Central Government Involvement

6. Chinese Consumers Preference

Panasonic, LG Chem, Samsung SDIFirst finished building an electric vehicle battery factory in Xian, ChinaPlant can currently supply approximately 40,000 units a yearStarted to supply the Li-ion cylindrical EV batteries to JAC China

LG ChemCurrently the World's No. 1 automobile battery supplierRecently also groundbreaking their new factory in Nanjing, ChinaBatteries specifically for EVs with agreements in place with SAIC ,Qoros, and some other local automakers

LG Chem Partners

2002 Hyundai and Kia2007 General Motor2008 Ford2009 Renault2011 Volvo

Panasonic

Strategic partner with the electric vehicle industry leader TeslaHas the world's largest share of the automotive lithium-ion batteries by far December 2015, decide to build the first green car battery plant in Dalian, China.plan to invest $412 million USD in building the factory

BYDHeadquarter is located in Shenzhen, ChinaChinese domestic largest manufacturer of EV and rechargeable batteriesHas 21 years of history. BYD e6 units are operating in many different continents

BYD + Daimler = DenzaIn 2010, Daimler and BYD established a joint company Denza

NEVS ex-SaabChinese company National Electric Vehicle Sweden (NEVSplans to launch five electric cars by 2018

Letv & Aston MartinAston Martin just signed an agreement to work Letv to create aluxury electric car

ReferencesAstarini, S. (2014, January). Hybrid electric vehicles: A stop-gap measure in China's green car market. Retrieved April 13, 2016, from http://www.eco-business.com/opinion/hybrid-electric-vehicles-stop-gap-measure-chinas-green-car-market/Aston Martin. (2016, January). Aston Martin Live. Retrieved April 15, 2016, from https://www.astonmartin.com/live/news/2016/01/07/letv-and-aston-martin-reveal-the-autolink-rapide-s-at-cesBYD. (2016). Welcome to BYD Official Site. Retrieved April 14, 2016, from http://www.byd-auto.net/vehicles/e6/index.phpBloomberg. (2014, January). BYD says Chinese cars headed to U.S. in late 2015. Retrieved April 14, 2016, from http://www.autonews.com/article/20140106/GLOBAL03/140109926/byd-says-chinese-cars-headed-to-u.s.-in-late-2015China Extends Lead As World's Largest Car Market By Sales; GM, Ford China Deliveries Up By Double Digits. (2014, April 07). Retrieved April 12, 2016, from http://www.ibtimes.com/china-extends-lead-worlds-largest-car-market-sales-gm-ford-china-deliveries-double-1621254China asso. of automobile manufactures. (2016, March). The market share of Chinese brand passenger cars kept growth_News_CAAM. Retrieved April 13, 2016, from http://www.caam.org.cn/AutomotivesStatistics/20160318/1305187602.htmlDenza. (2016). Milestone. Retrieved April 14, 2016, from http://www.denza.com/?s=eng&r=single/milestonesKrieger, A. (2012, July). Recharging China's electric-vehicle aspirations. Retrieved April 06, 2016, from http://www.mckinsey.com/industries/automotive-and-assembly/our-insights/recharging-chinas-electric-vehicle-aspirationsLG CHEM. (2016). Automobile Battery Product. Retrieved April 13, 2016, from http://www.lgchem.com/global/vehicle-battery/car-batteries/product-detail-PDEB0001Samsung SDI. (n.d.). Automotive Battery - Battery Cells & Battery System | Samsung SDI. Retrieved April 06, 2016, from http://www.samsungsdi.com/automotive-battery/products/prismatic-lithium-ion-battery-cell.htmlYoung, A. (2015). Chinese Consumers Bought Nearly 300% More Electric Cars This Year Compared To 2014. Retrieved April 11, 2016, from http://www.ibtimes.com/chinese-consumers-bought-nearly-300-more-electric-cars-year-compared-2014-2222591Liu, X. (2013, November). The Chinese EV Industry Challenges and Opportunities. Retrieved April 13, 2016, from http://mackinstitute.wharton.upenn.edu/wp-content/uploads/2013/11/6b_-LiuAuto-China-Wharton-2013-Liu.pdfNikkei asian view. (2015, December). Chinese investment: Panasonic to build green-car battery plant in China- Nikkei Asian Review. Retrieved April 15, 2016, from http://asia.nikkei.com/Business/Companies/Panasonic-to-build-green-car-battery-plant-in-China

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