J.D Power Survey – Enthusiasm For Electric Cars Grows Rapidly In China

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MAR 22 2018 BY MARK KANE 10

Consumers in China are very enthusiastic about New Energy Vehicles (mainly all-electric), which suggests that sales will continue to grow quickly.

According to a J.D. Power survey on Chinese consumers’ purchase intentions regarding new-energy vehicles, more than 80% of consumers completely or partially agree that NEV will replace vehicles powered by internal combustion engines.

At the same time, there is still a need to meet high expectations about extending range and shortening charging times.

Sales of New Energy Vehicles in China – December 2017

“The online survey, which was designed and conducted by J.D. Power in January to understand Chinese customers’ perception and desire for new-energy vehicles, has a total of 2,212 respondents across the country.

The survey shows that 86% of consumers say they “completely agree” or “partially agree” that new-energy vehicles (NEVs) will replace internal combustion engine cars, and 95% say they are “very willing” or “slightly willing” to choose an NEV for their next vehicle purchase. Environmentally friendly (76%) and fuel economy (63%) are the most often cited reasons for purchasing an NEV, while government incentives, such as subsidies (61%) and free license plates (40%), are also important. However, if there were no subsidies, 29% of consumers indicate they would not select an NEV and 41% would not select an NEV if there were no free license plates.”

China is the biggest electric vehicle market in the world, and one of the fastest growing at the same time, which is supported by policy and incentives, as well as consumer enthusiasm. The outlook is bleak for ICE cars.

Read Also – Plug-in electric car sales increased four-fold to nearly 35,000 in China, in one of the slowest months of the year – January

A Typical Low-Cost, China-Only Electric Car – The Roewe E50

“Battery life remains a big concern. The survey finds that consumers in China expect a shorter charging time and a longer driving range. More than three-fourths (77%) of consumers prefer new- energy vehicles with a driving range on a full charge of more than 200 kilometers, while 38% prefer a range of more than 300 kilometers. About one-third (30%) indicate they prefer a charging time of less than 6 hours and 12% prefer battery changing, which takes only a few minutes.”

“Most consumers are still concerned about dependability and high maintenance costs due to the constraints of current battery technology. Seven in 10 (68%) consumers are concerned that the mileage driven on one charge will decrease over time. Other concerns include high charging frequency (65%); long charging time (60%); high battery replacement/maintenance cost (59%); vehicle breakdown caused by battery troubles (49%); and insufficient battery warranty services (40%).”

“Specific to battery use, consumers also have other concerns, such as the lack of a battery recycle system, which may result in pollution (27%); lack of clarity about the usage and maintenance of battery (22%); and uncertainty about how to dispose of a worn-out battery (21%).”

“Following are additional findings of the survey:

  • Trust plays an important role: Consumers in China trust conventional automakers (93%) more than new entrants (81%) to develop new-energy vehicle technologies. Customers trust new automakers less due to their low brand awareness, unreliable product quality and immature technologies; however, they have more faith in new players when it comes to innovation capabilities.
  • New-energy vehicle purchasing options matter: New-energy vehicle intenders are willing to try new ways of purchasing and servicing NEVs:41% prefer online car shopping and 30% prefer to visit the branded service stores directly owned by the manufacturers for after-sales service and maintenance.”

Jacob George, Vice President and General Manager at J.D. Power Asia Pacific said:

“Behind the enthusiasm for new-energy vehicles are a growing environmental awareness and a series of incentive policies. There is still a gap between such fervor and real demand, however. When governmental incentives gradually fade away, auto manufacturers need to be cautious and get prepared for the potential decrease of demand for NEVs.”

Jeff Cai, General Manager of Auto Products Practice at J.D. Power China said:

“Consumers’ high expectations for new-energy vehicles, especially battery technology, will likely drive manufacturers to enhance research and development efforts for technology advancement and breakthroughs. Battery technology has become one of the most formidable challenges that manufacturers must address,”

“How to achieve a longer driving range with a lower battery charging frequency, how to further reduce battery costs and how to address its recycling—all these are pressing challenges that need to be addressed before we can really embrace the era of new-energy vehicles,” added Cai.

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10 Comments on "J.D Power Survey – Enthusiasm For Electric Cars Grows Rapidly In China"

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meh.
EV enthusiasm is growing in all nations.
Everybody likes the speed and low costs.
Sadly, in china, only Tesla has the speed, but the gov, like germany, refuse to give subsidy to tesla, though to local-made they will.

I think in China especially.
They look at the USA Republicans, and Do The Exact Opposite, because they have every intention to beat us to new markets.

-Solar, Wind, Battery’s and EV’s.
If the Repubs are against it, the Chinese are for it.
Even global warming, China has retired more coal than any other nation. Of course, they still have a lot to do.

But, they want to be Number 1 in Solar, and are glad to shut it down from the Citizen to the Leadership.

And now they’re looking for higher skill jobs to steal.

Sorry to contradict you, but China doesn’t care about republicans or democrats or global warming, they’re only doint it because the air is unbreathable in their big cities.

China has NEO EP9, which held Nurmburg record
For the less weathy, there’s NEO ES8, Model X performance, better technology, half the cost.

Real sad part is American consumers have no choice but to put up with Tesla’s price.

This is why it’s better to start with a population that’s almost a clean slate, rather than one that has been subjected to a whole century of the most sophisticated mass media indoctrination available to shape its attitudes towards automobiles. By the 1920s you already had car advertising campaigns that are legendary today; you had Al Sloan at GM turning his company’s divisions into a pyramid scheme of caste jealousy; you had great piles of cash to spend on radio ads, with TV in the wings.

All of this is a very hard thing for newcomers to fight.

Which is why landlines never caught on in China or for that matter any developing nation. They just skipped that step. Almost nobody has a landline in China.

Why does an article about China and EVs have a picture of a Tesla on it???

I don’t believe that Chinese automakers are in any danger of incentives running out anytime soon.

It seems to me that China is rearranging incentives to make automakers increase the range and technology in their cars so that they can eventually export to the world.

When that happens, whoa! All the tradition automakers that have been dragging their heels with full knowledge that Tesla just can’t grow fast enough to be a real threat in the short term. They will be blindsided by the Chinese EV onslaught just like they were by the Japanese efficient, long life cars earlier.

+1

Perfect Example of Chinese Leadership wanting to Take a New Market away from the West. And Trump is falling into the Trap, listening to US auto industry complaining about EPA requirements.

This is a tipping point, either the US COMPETES for EV Production or they Give Away another Industry to a Foreign Government.

Because, to Keep this industry takes LEADERSHIP: Political and Corporate. You cannot allow Politics to be Controlled by Corporations.