China New Energy Vehicle Report April 2018

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Table of contents

1 Summary ...... 7

2 Forecast NEVs ...... 13

3 Current situation for EV and plug-in hybrid passenger cars ...... 15

4 Regulation ...... 22

4.1 Subsidies ...... 22

4.2 CAFC (Corporate Average Fuel Consumption) ...... 24

4.3 Carbon Credit Scheme and NEV Mandate ...... 26

4.4 Safety standards for EVs and recycling for EV batteries ...... 28

4.5 The NDRC is history ...... 29

5 Reasonable game plans for reaching the CAFC and the NEV quota ...... 30

6 Will 48V become mainstream in China? ...... 38

7 Batteries ...... 41

7.1 Regulation and current status ...... 41

7.2 Forecast of battery capacity and demand ...... 43

7.3 Consolidation of the EV battery industry ...... 46

7.4 Regulation on battery recycling ...... 48

8 Charging stations ...... 50

9 Longterm visions of the government ...... 54

9.1 NEV Roadmap ...... 54

9.2 National Intelligent Connected Vehicle Pilot Zone ...... 54

10 Fuel cells in China ...... 56

11 NEV strategies of existing Chinese OEMs ...... 57

11.1 Geely ...... 57

11.2 BAIC BJEV ...... 58

11.3 Chery New Energy ...... 58

11.4 GAC New Energy ...... 59

11.5 JMC New Energy (JMEV) ...... 60

11.6 JAC-VW ...... 60

12 New entrants for NEVs ...... 61

12.1 Nio ...... 64

12.2 Byton ...... 66

12.3 CH-Auto Technology ...... 67

12.4 XPENG ...... 68

12.5 Lvchi Auto ...... 69

12.6 Baoneng ...... 71

12.7 AIWAYS ...... 72

12.8 Chongqing Jinkang ...... 72

12.9 ICONIQ ...... 73

12.10 Jiangsu Minan Auto ...... 73

12.11 NEVS ...... 74

12.12 Changjiang EV ...... 74

12.13 Wanxiang Group ...... 75

12.14 Yudo New Energy ...... 75

12.15 Zhidou ...... 75

12.16 Henan Suda ...... 76

12.17 Hozon Auto ...... 76

12.18 GreenWheel EV ...... 77

12.19 Techrules ...... 77

12.20 LeEco ...... 77

12.21 Faraday Future ...... 78

12.22 Lucid ...... 79

13 Commercial vehicles ...... 80

14 EV Car Sharing Schemes ...... 83

14.1 The problem with parking lots ...... 83

14.2 EVCard ...... 84

14.3 Microcity EV ...... 85

14.4 LeShare ...... 85

15 Major subsidy fraud for EVs ...... 86

Table of figures Figure 1: Forecast EV and Plug-In Hybrid production China ...... 14 Figure 2: EV passenger cars monthly production ...... 15 Figure 3: Market share EV passenger cars by brand 2017 ...... 16 Figure 4: Top 15 EVs ...... 17 Figure 5: BAIC EC Series ...... 18 Figure 6: ZD D Series (owned by Geely) ...... 18 Figure 7: JAC iEV ...... 18 Figure 8: Plug-In hybrid passenger car production ...... 19 Figure 9: Plug-in hybrid passenger car by model 2017 ...... 20 Figure 10: Subsidies for EV passenger cars ...... 22 Figure 11: Changes to the subsidies in 2018 ...... 22 Figure 12: Corporate Average Fuel Consumption Limits ...... 24 Figure 13: Super credits for CAFC calculation ...... 25 Figure 14: Super credits for the NEV mandate ...... 26 Figure 15: Credits that current EVs would get in 2020 ...... 27 Figure 16: Cost and fuel savings of EVs and hybrids ...... 30 Figure 17: Cost and fuel benefits of traditional powertrain components ...... 31 Figure 18: Penetration rates for traditional fuel saving technologies ...... 32 Figure 19: Potential game plan for Beijing-Benz 2020 ...... 33 Figure 20: Potential game plan for SAIC-VW 2020 ...... 34 Figure 21: Potential game plan for FAW-VW 2020 ...... 35 Figure 22: Potential game plan for Great Wall 2020 ...... 36 Figure 23: Potential game plan for BYD 2020 ...... 37 Figure 24: Forecast for 48V mild hybrid equipped card by brand in China ...... 38 Figure 25: Global Li-Ion battery capacity and China’s share ...... 43 Figure 26: Current and future capacity of battery suppliers ...... 44 Figure 27: Battery capacity demand ...... 46 Figure 28: Standards for charging stations ...... 50 Figure 29: Charging stations by February 2018 ...... 51 Figure 30: DC charging stations plan for 2020 ...... 52 Figure 31: Regional plan for charging stations in 2020 ...... 52 Figure 32: Topics of A NICE CITY ...... 55 Figure 33: Expansion plans of A NICE CITY ...... 55 Figure 34: Technical details of A NICE CITY ...... 55 Figure 35: Plan for the number of H2 stations and FCVs ...... 56 Figure 36: The 15 new EV license holders ...... 61 Figure 37: 17 items for the new EV license ...... 62 Figure 38: Patents of new entrants in NEV ...... 63

Figure 39: Capacity plan of Lvchi Auto...... 70 Figure 40: Model plan of Lvchi Auto...... 70 Figure 41: Commercial vehicle EVs (YTD May) ...... 80 Figure 43: Changes to the CV NEV subsidies in 2018 ...... 81 Figure 44: Station of Microcity EV in Hangzhou ...... 85 Figure 45: Detailed EV fraud list ...... 88

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