Review of Chinese Automotive Industry ——Weely Analysis on Hotspots
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Issuing: May 24, 2019 The 20th Issue (Issue No. 246) Review of Chinese Automotive Industry ——Weely Analysis on Hotspots Information Consulting Center Main Contents 1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models 6、Hotspot:Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast Development Environment • Industrial production operation of China was generally stable from January to April From January to April, the added value of large industrial enterprises increased by 6.2% year-on-year, and the general situation remained stable. From January to April, the growth rate of industrial production declined by 0.3 percentage point from the first quarter. It was the same as that of the whole year of 2018. The general operation was still in a reasonable range. From January to Macro April, the added value of other 40 major industries all achieved year-on-year growth. • China will impose tariffs on some US goods since June 1 Since June 1, 2019, China has increased the tariff rates on the some US goods on the list (USD 60 billion)for goods that have been increased tariffs, imposing tariffs of 25%, 20% or 10% respectively. For tariff item that has previously been increased by 5% tariff, another 5% tariff will continue to be imposed. • The market share of indigenous brand product has fallen And the small auto enterprises face challenges According to the statistics of CAAM, the sales of indigenous brand passenger vehicles in April totaled 585,000 units, a year-on-year decrease of 27.9%. Especially in the passenger vehicle sector, the market share of indigenous brand products fell to 37.1%. It was the lowest point in three years. At present, there are more than 100 passenger vehicle brands in the domestic market, and most of Market them have the annual production and sales scale of less than 200,000 units. The market reshuffle has begun, and some marginalized brands will withdraw from market rapidly. • Chongqing announced the new program to boost the auto production and sales to 3 million units in next year Recently, Chongqing issued the Special Action Program for Promoting High-Quality Development of Manufacturing Industry in Chongqing (2019-2022). The government intends to return to the scale of production and sales of 3 million units by 2020. Information Consulting Center 3 Main Contents 1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models 6、Hotspot:Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast New Energy Industry • Ministry of Industry and Information Technology released the main points of standardization work for new energy vehicles in 2019 The Equipment Industry Department of the Ministry of Industry and Information Technology has organized the National Technical Committee of Auto Standardization to prepare the key points for the establishment of standards for new energy vehicles in 2019. The content covers the five major areas of electric vehicle: Electric vehicle safety, electric vehicle energy consumption, fuel cell electric Policy vehicle, charging facility and hydrogen refueling system and power battery recycling. • The 4th List of Recommended New Energy Vehicle Models for Promotion and Application in 2019 was issued This list covers a total of 238 models of 74 enterprises, including 221 pure electric vehicle models of 68 enterprises, 12 plug-in hybrid products of 7 enterprises, and 5 models of fuel cell products of 4 enterprises. • More than 90% of the power battery market will be monopolized by the Top 10 companies In 2018, the enterprises in China's power battery industry were greatly impacted by multiple pressures, such as the sharp declines in subsidies, stringent requirements on energy density and range, and the tight capital chains of enterprises. The market entered a period of rapid reshuffling. The concentration rate of the future power battery market will be further strengthened, and the Top 10 companies may occupy more than 90% or more of the market share. Industry • The number of charging piles reached 953,000 units in April, Increasing by 75.2% According to data released by EVCIPA, as of April 2019, the total number of public charging and private charging piles nationwide was 953,000 units, a year-on-year increase of 75.2%. In terms of provinces and cities, the construction of public charging infrastructure is still relatively concentrated in some areas. The public charging infrastructure built in Beijing, Shanghai, Guangdong, Jiangsu, Shandong, Zhejiang, Hebei, Tianjin, Anhui, and Hubei accounts for 75.5% of the total.。 • Zoyte Auto starts the layout in new energy in advance Zotye Auto has announced the Five-Year Plan with the 412 Strategy as the guide, and the intelligent service Enterprise and brand rebuilding as the goals, and will start the 3.0 Era. According to the established plan, the company has reserved a series of forward-looking advanced technologies for hydrogen fuel vehicles in advance. Information Consulting Center 5 New Energy Industry • Denza receives the 7th investment from BYD Daimler and will be merged into the sale system of Benz On May 17, BYD announced that BYD and Daimler( the shareholders of Denza New Energy)increased their capital by 150 million yuan, and the shareholding ratio held by both parties remained 50%. Since 2012, BYD and Daimler have increased their capitals by seven times, with a cumulative amount of more than Rmb 2 billion yuan. • BYD Qin Pro EV Super Version will be launched on May 16 The BYD Qin Pro EV600 Super Version was launched on May 16. The pre-sales price of the new model after deduction of the subsidy is Rmb 190,000-200,000 yuan. In terms of power, the new model still uses the former McPherson/rear multi-link independent suspension, and the engine cover is equipped with double air poles. The new car's power has increased, the maximum power of the motor has increased by 15kW, reaching 135kW, and the peak torque is 280Nm. • Everwin Precision Technology plans to form a new branch with Rmb 100 million for hydrogen business Enterprise On May 16, Shenzhen Everwin Precision Technology Co.,Ltd. announced that it planed to invest Rmb 100 million in the establishment of a wholly-owned subsidiary (Shenzhen Everwin Hydrogen Power Technology Co., Ltd.) in Shenzhen. It is reported that new company will be registered in Shenzhen with a registered capital of Rmb 100 million yuan. The business scope includes the research and development, production and sales of hydrogen fuel cell metal plates. • Guoxuan Hi-Tech and Tata Motors India jointly invest 40 million Rupees to set up a battery plant Guoxuan Hi-Tech and Tata Motors intend to jointly establish a joint venture company in India. Of which, Guoxuan Hi-Tech will hold 40% of the company. The main products of the joint venture include the design, development, verification and manufacture of battery modules and battery packs, as well as battery management systems for a wide range of passenger and commercial vehicles in the region. • The First Phase Plant of First Battery formally started production On May 10, the first phase of the power battery project of Far East First New Energy Jiangsu Co., Ltd.(12GWh) a wholly- owned subsidiary of Far East Smart Energy Co., Ltd., started the production in Yixing, Jiangsu Province. The plant covers an area of 528 mu, with a total investment of Rmb 2.36 billion yuan and the covered area of of 200,000 square meters. Information Consulting Center 6 New Energy Industry 30 80000 25 20 60000 15 40000 10 5 20000 0 0 4/11 4/19 4/26 4/30 5/10 5/16 4/11 4/21 4/24 4/29 5/9 5/14 Co:≥99.8% Co:≥20.5% Normal High Superhigh Trend of the Price of Electrolytic Cobalt (Rmb 10,000/ton) Trend of the Price of Graphite Electrode (Rmb/ton) 180 345 179 178.85 179.01 340 340 178 177 176.82 176.82 176.82 335 176 331 332 330 329 330 329 175 175.29 174 325 173 320 4/10 4/20 4/25 4/29 5/11 5/16 4/11 4/20 4/25 4/29 5/11 5/15 Trend of Commodity Index of Lithium Carbonate Trend of Rare Earth Index Information Consulting Center 7 Main Contents 1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models 6、Hotspot:Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast ICV Industry • Ministry of Industry and Information Technology: The government will start the establishment of standard for self- driving technologies On May 15, the Ministry of Industry and Information Technology announced the key points of the standardization of ICV in 2019. It points out that the Ministry of Industry and Information Technology will complete the formulation of basic general standards, to initiate the projects for testing methods and requirements for self-driving at certain situation, start the pre-research on the self- driving data recording, driver takeover capability identification and driving task takeover and other standards urgently needed by the industries, actively organize the tests and certifications for important standard for commercial vehicle fleet, and the preparation of intelligent network guidance documents such as the ICV function and performance evaluation guide. Policy • Guangdong Province issued an action plan to accelerate the development of 5G industry Guangdong issued the Action Program for Accelerating the Development of 5G Industry in Guangdong Province (2019 to 2022). According to the program, by the end of 2020, continuous coverage and commercial use of the 5G networks in the central areas in the cities of the Pearl River Delta will be basically achieved; the total number of 5G base stations in the province should reache 60,000, and the number of 5G private users should reach 4 million; 5G demonstration application scenarios should exceed 30.