Market Research Report :Electric Vehicle Market in China 2012

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The Electric Vehicle Market in China is part of Netscribes’ Automobile Industry Series reports. Led by supportive government policies the electric vehicle market in China is expected to witness robust growth.
The report begins with an overview of the different segments of electric vehicles. It is followed by the market overview section which provides a snapshot of the global electric vehicle market. A brief comparison of the EV infrastructure deployment across nations has also been covered in this section. This is followed by a brief description of the electric vehicle market in China including the planned EV targets of major cities in China.
Factors driving the growth of the electric vehicle market in China are also explained in detail. Rising population and growing transport demand provides an impetus to the growth of the electric vehicle market in China. Foreign dependency on crude oil is expected to emerge as a major growth driver for the Chinese electric vehicle market. Reduction mandate of CO2 emission is expected to boost the growth prospects of the electric vehicle market in China. Per capita CO2 emission in China has grown with a CAGR of 6%. Development of EV battery manufacturers coupled with government incentives also provides a major growth opportunity for the electric vehicle market in China.
The players operating in the market also face challenges which are impeding their development and growth. Electric vehicle performance has emerged as a major challenge facing the market growth. Cost constraints and battery life cycle are also expected to have an unfavorable impact on the growth of the Chinese electric vehicle market.
Brief description of the key policies undertaken by the government of China with a view to develop the electric vehicle market is also highlighted in the report. Some of the major initiatives covered include development plan for fuel-efficient and new energy vehicles (2011-2020), ten cities, one thousand vehicles program and research and development support policies.
Emerging trends in the electric vehicle market include product innovation, infrastructure development and growing competition.
This is followed by the mergers and acquisitions section, illustrating the recent mergers and acquisition activities that have taken place in the Chinese electric vehicle market. This section includes the announced date, closing date, target, buyer/investor, seller and deal size.
The competition section outlays the competitive landscape of the electric vehicle market in China briefing about the domestic and foreign players existing in the market. This section provides a three dimensional analysis of domestic key players’ revenues, profits and market capitalization. The key domestic players are ranked according to the total income and net profit. The report also features brief profiles of major domestic players in the mar

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Market Research Report :Electric Vehicle Market in China 2012

  1. 1. Electric Vehicles Market ‐ China Electric Vehicles Market ChinaApril 2012
  2. 2. Executive Summary  Global electric vehicle sales is expected to reach x mn units growing with a CAGR of y%  during 20‐‐‐‐‐ Market  Electric vehicle sales in China is expected to reach y mn units growing with a CAGR of z%  during 20‐‐‐‐ Drivers: Challenges: • Rising Population and Transport Demand  • Vehicle Performance Drivers &  • Foreign Dependence for Crude Oil • Cost ConstraintsChallenges • Reduction in CO2 Emission • Battery Life Cycle • p y Development of EV Battery Manufacturers • Government Incentives  Fuel‐efficient and New Energy   State‐owned Enterprise Electrical Vehicle Industry Government  Vehicles Program Alliance National Renewable Energy Law  Initiatives  Ten Cities One Thousand Vehicles Ten Cities, One Thousand Vehicles   Research and Development Support Policies Research and Development Support Policies Program  Product Innovation Trends  Infrastructure Development  Growing Competition Major PlayersCompetition Company 1 Company 2 Company 3 Company  4 ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 2
  3. 3. •Introduction•Market Overview • Global • China•Drivers & Challenges•Government Initiatives•Trends g q•Mergers & Acquisitions•Competition•Key Takeaway Key Takeaway ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 3
  4. 4. Electric vehicle market is divided into major segments Electric Vehicles A B  C  D• Point 1  • Point 1 • Point 1  • Point 1• Point 2 • Point 2 • Point 2 • Point 2 ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 4
  5. 5. Led by government support, EV sales in China is expected to grow with a CAGR of x% to reach y mn units by 20‐‐Electric vehicles – Overview Market Size & Growth• Electric vehicle sales in China is expected to reach x  mn units growing with a CAGR of y% during 20‐‐‐‐ units• In 20‐‐, China completed the construction of y EV  x2 1000000 charging stations and z EV charging poles Z% 800000• China emerged as the global leader in terms of the  600000 number of charging stations and poles in 20‐‐ g g p 400000  Several Chinese cities such as A, B, C and D has announced  200000 EV deployment targets for 20‐‐ x1 0 20-- 20--e Automotive Industry Changes Planned Target (20‐‐e) ‐‐‐ 20‐‐e City EV target (‐‐) A B City 1 Ci 1 A City 2 B City 3 C C D City 4 City 4 D ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 5
  6. 6. Drivers & Challenges – Summary  Drivers Challenges Rising Population and Transport  Demand  Vehicle Performance Foreign Dependence for Crude Oil Cost Constraints Reduction in CO Emission R d ti i CO2 E i i Battery Life Cycle Development of EV Battery  Manufacturers Government Incentives ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 6
  7. 7. Rising population and rapid urbanization to drive the growth of electric vehicle market in ChinaRising Population and Transport Demand  Impact• Finding 1• Finding 2• Finding 3 Finding 3• Finding 4 X Initiative Rise in Population A B Plan Highlights Z% mn Point 1 1,500 B C D A Point 2 1,000 A1% A2% C1% D1% 500 B1% B2% C2% D2% 0 20‐‐ 20‐‐ 20‐‐e 20‐‐e ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 7
  8. 8. Dependency on depleting oil reserves is expected to emerge as a major growth driver for the Chinese EV marketForeign Dependence for Crude Oil Impact• Finding 1• Finding 2• Finding 3• Finding 4 Dependency on Imported Crude Oil Dependency on Imported Crude Oil % Reduction in Oil  Z% x4 Technology Cost Savings (USD) 80 Consumption x3 60 x2 2 A x~ y% x 40 x1 20 B z% y 0 20‐‐ 20‐‐ 20‐‐e 20‐‐e ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 8
  9. 9. CO2 emission reduction mandate of x%‐y% by 20‐‐ to emerge as a major growth driver for the Chinese EV marketReduction in CO2 Emission Impact• Finding 1• Finding 2• Finding 3• Finding 4 Per Capita CO Per Capita CO2 Emission Rise in Non Fossil Fuel Usage Rise in Non Fossil Fuel Usage tons % 8 x3 15 Z% Z% x2 6 10 x1 4 x2 x1 5 2 0 0 19‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 9
  10. 10. Led by government support the domestic players are stepping up the EV battery production in ChinaDevelopment of EV Battery Manufacturers Impact• Finding 1• Finding 2• Fi di 3 Finding 3• Finding 4• Finding 5 BAK – Production Capacity Battery  Daily Production  AhCompany  Subsidy x2 Base Capacity Z% 200,000 , City 1 a 150,000Company 1 x City 2 b 100,000 x1 50,000Company 2 City 3 y c 0 20‐‐ 20‐‐e ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 10
  11. 11. Private consumer subsidies to emerge as a major growth driver of the electric vehicle market in ChinaGovernment Incentives Impact• Finding 1• Finding 2 A B C • Finding 3 City Subsidy City 1 •Point 1 City 2 City 2 •Point 2 •Point 2 ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 11
  12. 12. High cost of electric vehicles vis‐à‐vis gasoline vehicles to emerge as a major challenge to the Chinese EV marketCost Constraints Impact• Finding 1• Finding 2• Finding 3• Finding 4• Finding 5 Gasoline Price Gasoline Price Reduction in Cost of EV Reduction in Cost of EV A B C USD USD/kWh Z% x2 6 3,000 x1 4 2,000 x1 x2 2 1,000 x3 y1 y y2 y3 0 0 20‐‐ 20‐‐e 20‐‐ 20‐‐e ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 12
  13. 13. In 20‐‐, China launched the x program to promote the development of EV X Program Point 1 Point 2 Point 3 Point 4 Point 4 Point 5 Point 6 Category Cities Point 7 A B ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 13
  14. 14. Under the ‐‐th FYP government and enterprise investments in new energy vehicles was estimated to be USD x bn Research and Development Support Policies • Point 1 Point 1 A • Point 2 •P i t1 Point 1 B • Point 2 • Point 1 i 1 C • Point 2 D • Point 1 Point 1 ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 14
  15. 15. Trends – Summary  Product Innovation Key  Trends d Infrastructure  Growing Competition Growing Competition Development l ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 15
  16. 16. Chinese EV manufacturers are developing new varieties of electric vehicles in partnership with foreign companies..Product Innovation (1/2)• Finding 1 Chinese EV market • Finding 2 Finding 2 is characterized  is characterized• Finding 3 with new  innovations Automobile Company Schedule Release  Vehicle Model Expected Price Manufacturer Partnership Date ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 16
  17. 17. Development of charging stations by Chinese energy companies has emerged as a major trend in the Chinese EV marketDevelopment of Charging Infrastructure • Finding 1• Finding 2 EV infrastructure • Finding 3 construction to  develop the market • Point 1 Company 1  • Point 2 • Point 1 Company 2 • Point 2 • Point 1 Company 3 • Point 2 Others • Point 1 ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 17
  18. 18. Domestic Competition – Summary (1/2) Net Income 2,600 Size of the Bubble Represents Market Capitalization in USD mn 2,400 2,200 , x4 2,000 1,800 557.8 1,600 , 1,400 1,200 1,000 800 600 400 x2 200 0 ‐200 114.0 ‐400 Total Income ‐5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 Company 1 Company 2 Company 3 p y Company 4 p y ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 18
  19. 19. Domestic Competition – Summary (2/2)Total Income and Profit for Major Domestic Companies 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 USD x1 Company 1 y1 x2 Company 2 y2 x3 Company 3 y3 x4 Company 4 y4 A B ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 19
  20. 20. Domestic Company – Company 1Company Information Locations – China City 1 , Country 1Corporate AddressTel No.Tel No ‐Fax No. ‐Website ‐Year of Incorporation ‐Ticker Symbol ‐Stock Exchange ‐Products and ServicesProducts and Services Category Products/Services HeadquartersA Product 1, Product 2 Key People Name N Designation D i tiB Product 1, product 2, Product 3,  Product 4 …. Person 1 Designation 1 Person 2 Designation 2 Person 3 Designation 3 Person 4 Designation 4 ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 20
  21. 21. Domestic Company – Company 1 Financial Snapshot i i lS h Key Ratios K i y‐o‐y Total Income Total Income Profit Particulars  change (20‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ USD mn USD mn  ‐‐‐) Profit / Loss Profitability Ratios8,000 x3 x4 600 Operating Margin Operating Margin ‐ ‐ ‐ ‐‐ ‐6,000 Net Margin ‐ ‐ ‐ ‐ ‐ x2 4004,000 x1 Profit Before Tax Margin ‐ ‐‐ ‐ ‐ ‐ 200 Return on Equity ‐ ‐ ‐ ‐ ‐2,000 Return on Capital Employed ‐ ‐ ‐ ‐ ‐ 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Working Capital ‐ ‐ ‐ ‐ ‐ Return on Assets ‐ ‐ ‐‐ ‐ ‐ Financial Summary  Return on Fixed Assets ‐ ‐ ‐ ‐ ‐• The company earned a net profit of USD x mn in FY 20‐‐, as  Cost Ratios compared to net profit of USD y mn in FY 20‐‐ Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐• The company reported total Income of  USD x mn in FY 20‐‐,  Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐‐ registering an increase of y per cent over FY 20‐‐ registering an increase of y per cent over FY 20 Interest costs (% of Sales) ‐ ‐‐ ‐ ‐ ‐• The company reported an operating margin ofx per cent in FY 20‐‐ a  Liquidity Ratios decrease of y percentage points over FY 20‐‐ Current Ratio ‐ ‐ ‐ ‐ ‐• The company reported debt to equity ratio of x in FY 20‐‐, an  Cash Ratio ‐ ‐ ‐ ‐ ‐ increase of y per cent over FY 20‐‐ Leverage Ratios Debt to Equity Ratio Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐Financial Summary  Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐ Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐ Indicators (dd/mm/yy) Efficiency Ratios Market Capitalization (USD) ‐ Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐ Total Enterprise Value (USD) ‐ Asset Turnover ‐ ‐ ‐ ‐ ‐ Current Asset Turnover Current Asset Turnover ‐ ‐ ‐ ‐ ‐ EPS (USD) ‐ Working Capital Turnover ‐ ‐ ‐ ‐ ‐ PE Ratio (Absolute) ‐ Capital Employed Turnover ‐‐ ‐ ‐ ‐ ‐ ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 21
  22. 22. Domestic Company – Company 1Key Business Segments Key Geographic Segments A B C A B C D E b1 b2 b3100% z3 z4 100% a1 c1 a2 c2 a3 c3 z1 z2 y2 y3 y3 y1 y450% y2 y1 50% x2 x3 x3 x1 x2 x4 x1 0% 0% 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐Key Recent Developments Description  News • Company is a global leader x  supply and has the largest market share in a, b, c and d in the worldOverview • Green energy products such as x, y and z has been developed by the company • Company entered into a technology partnership with Company 2 to develop a x for the Country 1 marketNew Business • The x will be marketed under a new brand jointly owned by both Company 2 and Company 1 • A common x will also be established in Country 1 for the development, design and testing purposes of x ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 22
  23. 23. Electric vehicle market in China is expected to reach x mn units growing with a CAGR of y% during 20‐‐‐20‐‐ Supportive government policies is expected to drive the deployment of electric vehicles in China Opportunities in the  Government  Market Size Market Size Market M k t Initiatives ii i units Growing population  x2 China launched the  leading to rise in  1,000,000 Z% ‘Development Plan  transport demand is  transport demand is for Fuel efficient and  for Fuel‐efficient and 500,000 expected to drive the  New Energy Vehicles’  x1 demand for EV in China 0 to drive the market 20‐‐ 20‐‐e Ten Cities, One  Growing foreign  Growing foreign Thousand Vehicles  Th d V hi l dependency  on crude oil  Program to increase  coupled with reduction in  the deployment of  CO2 emission to drive the  Challenges EV in China EV market in China Government has also  • Vehicle Performance launched several  Development of domestic  research and  EV manufacturers and  • Cost Constraints development  supportive government  • Battery Life Cycle y y programs to develop  programs to develop incentives to drive EV  the Chinese EV  market growth market ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 23
  24. 24. Thank you for the attentionThe Electric Vehicle Market – China report is a part of Netscribes’ Automobile Industry Series. For more detailed information or customized research requirements please contact:Phone: +91 33 4064 6214E‐Mail: sales@netscribes.comAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &  g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives. p p f g f y g g p pDisclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT 24

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