Analysis：Electric Vehicle Industry in 2018
The overall sales in the electric two-wheeled vehicle market in 2018 were less gratifying compared with the year before. Over the four years from 2014 to 2018, the production and sales of electric vehicles in China have been hovering around 30 million units, which not only did not break the record of 36.95 million in 2013, but also showed a weak sustainable growth. In 2018, the electric vehicle industry suffered its fifth annual decline, with production and sales falling below 28 million units.
2018: the year of standards, increasingly fierce competition
Standards for electric bicycles, electric motorcycles and electric mopeds, as well as lead-acid batteries and lithium batteries, and other related standards was introduced in 2018, and all of them is going to be formally implemented this yea. This will put to an end the situation when there is no standard, or no complete standard, or difficulty in implementing standards for electric vehicles. This makes 2018 the “standard” year for the electric vehicle industry.
The industry threshold is getting higher and higher. Profits made by the enterprise need to be invested in R&D and sales while the profits keep decreasing. It deeply reflects that the electric vehicle industry has entered a new round of competition. A large number of low-cost manufacturing was restrained and banned by environmental protection policies. Enterprises must increase investment to meet the market demand.
Industrial policy restrictions
Although the annual export of electric vehicles accounts for a small proportion of the huge production and sales, the total export volume is optimistic due to the large base number. However, at present the United States have set up a 25% tariff on the electric vehicles from the mainland China, and the European Union imposes a duty of up to 79.3% on the electric bicycles imported from China. With trade protectionism rising, cheap made-in-China electric vehicles have been rejected by more and more countries, which put the policy of export-driven-industries in trouble.
Polarization in electric vehicle industry
The upgrading of industry policies indicate that about 200 major cities will ban or restrict electric motorcycles (including electric mopeds), which will not only curb the incremental demand, but also hit the existing demand. This requires enterprises to have the strength to make product quality and after-sales services meet the needs of the time.
In 2018, more than 300 small and medium-sized electric vehicle enterprises went bankrupt. In 2018, the production and sales of Yadea exceeded 5 million, which indicates that the company has gone from a leader to an oligarch. The top ten electric vehicle enterprises occupy over 70% of the market share. The leading complete vehicle and parts enterprises take up more and more market share, while the small and medium-sized enterprises recede quickly from the market, which shows a distinct polarization. The market integration moving to a new level indicates that the industry tends to a mature and integrated state.
Electric motorcycles ushering in a rapid development
The prevention and control of air pollution has been tightened year by year, and new energy vehicles are supported and promoted. After the new “Electric Bicycle Standard” is released, a large number of e-bikes will be categorized to e-motorcycles. In 2017, about 31 million electric vehicles were produced, with luxury e-bikes (which should fall under the e-motorcycle management category) accounting for more than half of the number. many e-bike manufacturers now have entered the motorcycle production catalog through new construction, acquisition, brand cooperation and so on.
According to the official announcement, there are about 50 enterprises that have gained e-motorcycle production qualifications and launched new electric two-wheeled motorcycles. Still more electric vehicle manufacturers are preparing to enter the motorcycle industry. More and more electric vehicles are put into the market every year.
2019 is a year of industry reshuffle, but also a year of greater challenges and opportunities. With the saturation of the domestic consumption market and the obstacles set by large cities, the competition between electric vehicle enterprises will become more severe. In such a situation, enterprises need to upgrade their products, and in the meantime, they need to constantly reduce the costs and sales prices. Therefore, the electric vehicle enterprises are facing a more difficult future.
Production of Electric Motorcycles in December 2018
Sales of Electric Motorcycles in December 2018