China Expected To Account For 40% Of Worldwide Production Of New Energy Vehicles In 2016

5 months ago by Eric Loveday 12

BYD Song PHEV

BYD Song PHEV

China closed out the year producing nearly 500,000 new energy vehicles (electric vehicles) for the whole of 2016 (while the country sold just over 351,00 of them as passenger EVs) . That figure is estimated to account for some 40% of the worldwide production total for new energy vehicles in 2016.

BYD plug-in electric car sales in China – November 2016

BYD plug-in electric car sales in China – November 2016

As Yicai Global reports:

“China’s new energy vehicle production is expected to account for 40 percent of the world’s total this year, according to Xu Yanhua, a deputy secretary general of the China Association of Automobile Manufacturers.”

Production of new energy vehicles in China has risen sharply as of late with some 84,000 made in November 2016 alone. That’s up 44.3% over last November and it brings the January-November total to an estimated 402,800 new energy vehicles produced in China.

Xu Yanhua, deputy secretary general of the China Association of Automobile Manufacturers, stated:

“The continued rise in output and sales of new energy vehicles suggests across-the-board progress throughout the entire industry.”

One of the leading new energy vehicle automakers in China is BYD who’s seen sales rise sharply (almost untraceable volume in late 2013 to 10,000 or so in some months of 2016) over the past few years (see chart).

Source: Yicai Global

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12 responses to "China Expected To Account For 40% Of Worldwide Production Of New Energy Vehicles In 2016"

  1. MaartenV-nl says:

    Is it wrong of me if I read this with mixed feelings? I am very glad that China is making fast progress in EV production and sales. But if the western carmakers keep as hesitant as they have been these past years, we will see a situation with EVs in a few years as we have seen with PV panels recently.
    The growth of capacity in China will overshoot the capacity needed for local demand and the overproduction can be dumped on the world market.

    The last thing I want is China to slow down, but who can we stimulate the western production to keep up with the Chinese? Tesla and Nissan can’t do it on their own.

    1. Mikael says:

      No mixed feelings needed. China is forcing anyone who want to sell cars in China to make lots of NEVs.
      All wstern manufacturers want to sell in the largest market, so they are accelerating all their EV plans.

      The 2020 EU regulations which has made every manufacturer come with new EVs “coming in 2019” or “coming in 2020” has just turned into “coming as soon as possible”.

      I hope a number of excecutives will have to answer for lost market shares in China to share holders why they didn’t stsrt making EVs sooner.

    2. Pushmi-Pullyu says:

      “I am very glad that China is making fast progress in EV production and sales. But if the western carmakers keep as hesitant as they have been these past years, we will see a situation with EVs in a few years as we have seen with PV panels recently.”

      I suggest we won’t see the same thing at all. First-world countries have automobile safety standards much higher than those in China, and U.S. standards are slightly higher than even EU standards.

      Cars developed for the Chinese domestic market can’t be sold here, period. That’s a very different situation than with Chinese-make solar panels. BYD tried to sell a car here in the USA, their e6… and you’ll note that went over like the proverbial lead balloon.

      Eventually, some auto maker — very likely BYD — will make an EV specifically built to penetrate the U.S./Canadian market. Personally, I will welcome the competition when it arrives. First-world legacy gasmobile makers need real competition to prod them out of their complacency in mostly, or almost entirely, ignoring EVs!

  2. Rich says:

    “China closed out the year producing nearly 500,000 new energy vehicles (electric vehicles) for the whole of 2016”
    This is good and bad news. The good – It’s great China is pushing forward with EVs faster than our foot dragging western automakers. The bad – I believe China had targeted 600K EVs for 2016. 500K EVs is 17% lower than their goal. Here’s hoping that China will push 1 million EVs in 2017 and block all western automakers sales in China unless the vehicles are EVs.

    1. Yogurt says:

      Actually China has legislation that takes effect in 2018 I beleive that deems you make many EVs or you don’t sell cars there…

      VW has huge EV plans there and is starting a new joint venture to specificaly make EVs which of course is nothing more than vaporeware here…

      Really all western and eastern auto makers will be making lots of EVs for China and is probably the only reason Toyota is making a BEV which we probably wont see…

      The problem I see is getting people to buy them…

  3. Assaf says:

    According to ev sales blog, it’ll be closer to 50% rather than 40%.
    And this is without buses, where China produces and purchases nearly all of the world’s electric fleet (~100k/year since 2015).
    http://ev-sales.blogspot.com/2017/01/china-buses-2016.html

  4. Another (Euro) industrial point of view says:

    I remember when TV show Top gear was using a clumsy looking Korean Hyundai as “reasonably priced car” in which their prestigious hosts were attempting to make the fastest lap. Some 4 years later nobody was laughing at Hyundai anymore. I believe that Chinese car makers are more or less where Koreans were 4 to 5 years ago. They probably still have what we westerners have mostly lost along the way, so busy we are regressing towards adolescence in a technology bubble that will keep us away from real life. If the Chinese/Koreans could keep on providing a no nonsense, adult approach of making KISS EV cars that work for most while we get lost in funky doors, silly autopilot and 0.1 sec 0-60 issues, they would do the world a real favor.

  5. Pushmi-Pullyu says:

    “China’s new energy vehicle production is expected to account for 40 percent of the world’s total this year…”

    Not to mention darn near 100% of vehicles labeled “new energy vehicles”, instead of EVs or electric cars! 😉

    I do wish those translating Chinese into English had chosen the term “alternative energy vehicle” instead of “new energy vehicle”, because the acronym NEV was already in use in the EV community, as an abbreviation for Neighborhood Electric Vehicle. 🙁

  6. Bob Nan says:

    Electric & Plugin version sales of
    350,000 private vehicles
    115,000 buses
    probably another 40,000 trucks. Great job China.
    Soon China will raise the volume of EVs as their battery makers ramp up the production and bring down the cost just like the way they did with Solar panels.

    And they will capture a bigger share from GM, VW, Toy.
    Then they will expand into Asian, European, African markets.

  7. Bob Nan says:

    Besides these highway capable EVs, China also sells Low speed electric vehicles powered by lead acid batteries which also has shorter range, but good enough for many.

    I believe more than 900,000 LEV’s were sold in 2015 and it should be much higher in 2016.

  8. Nix says:

    The current administration talks a lot about “winning”, but who’s economy will win the next time the inevitable gas price spikes hit? It will be the nations who already have moved away from oil for transportation.

    If this trend continues, that means China will be the winners. Not only are they winning in sheer numbers, they are winning even more as a percent of sales, and as a percent of total cars already on the road.

    Sadly, there is no sign of the current administration even attempting at “winning”.

  9. Lps says:

    With the inward looking Trump administration China was given the green light to take over leadership in the design and development of EV technology. They will be perfectly capable to meet US and Canadian safety standards. This will lead to good by big three, hello BYD!
    The Trump administration’s renewed focus on bringing back coal makes the US marching back to the third world.

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