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Tuesday, September 25, 2018 1:10:30 PM
According to McKinsey, ~0.37M electric vehicles (EVs) were manufactured by Chinese OEMs in 2016—accounting for ~43% of all EV production worldwide. Chinese OEMs achieved a 40% global share in 2015. OEMs from around the world (Chinese manufacturers among them) also produced ~0.33M EVs in China in 2016, and China now has the largest number of EVs on the road—overtaking, for the first time, the number of EVs in the United States.
Thus, China is the world’s largest passenger vehicle market. The premium segment in this largest market continues to take market share from the entry and mid-range segments, and is expected to continue to grow at a CAGR of 12.4% from 2017-2022, according to Frost & Sullivan. The SUV segment in China is also expected to outpace industry growth in the next 5 years, reaching ~17M units in 2022, representing a CAGR of 9.4% during the same period.
China is also the largest new energy vehicle (NEV) market in the world and continues to account for more than half of global battery electric vehicle (BEV) sales. China’s BEV sales are expected to experience more than 40% annualized growth until 2022, according to Frost & Sullivan. It has been stated that NIO is targeting the premium BEV segment in order to take advantage of BEV growth opportunities and NIO's ES8 and ES6 specifically target the premium SUV segment.
China's NEV market benefits from favorable policies and government support. China’s NEV market has outperformed the global NEV market significantly, growing at a CAGR of 141.5% from approximately 0.02M units in 2013 to 0.7M units in 2017, according to Frost & Sullivan. During the same period, global NEV sales recorded a CAGR of 16.2%. China is expected to continue to lead the growth of the global NEV market, reaching 3.6M units in 2022, growing at a CAGR of 37.1% from 2017 to 2022.
NEVs generally include BEVs, hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), among which the BEV is considered the most "eco-friendly" as a zero emission solution. Recognizing these benefits, the government of China favors BEVs to other NEVs and provides BEVs greater incentives. With battery technology improving and charging network expanding, consumer concern over driving range has also lessened, which is another positive factor contributing to the BEV market growth.
Therefore, BEVs have witnessed the fastest growth among all NEV types in the past 5 years, growing from 0.01M units in 2013 to 0.5M units in 2017 at a CAGR of 147.9% in China, as compared to 68.2% in the global market. China had the highest share of BEVs as percentage of NEVs at 64.1% as compared to 27.3 % for the global market in 2017. China has become the largest BEV market globally, accounting for approximately 54.3% of the overall global BEV market in 2017. Frost & Sullivan predicts that over 2.6M BEVs are expected to be sold in China in 2022, accounting for 64.6% of the global BEV market. During the period from 2017 to 2022, the sales volume of BEVs is expected to grow at a CAGR of 40.8% in China.
According to Frost & Sullivan, the total number of charging piles in China is projected to reach ~5M units by 2022, growing at a CAGR of 62.6%, including 2.17M public charging piles and 2.88M private ones.
Nothing I say, post, or do should ever be considered financial advice. I may be holding a long, short or no position. I am NOT or NEVER have I been compensated to post on here or anywhere and all my posts are for entertainment purposes only.
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