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Market Investigation Report on China's New Energy Automobile Industry, 2009

WWW.SHCRI.COM--Market Investigation Report on China's New Energy Automobile Industry, 2009

FOR IMMEDIATE RELEASE

PRLog (Press Release) - Mar 10, 2009 -
WWW.SHCRI.COM--"In Feb. 2009, Chinese government issued Revitalization of Chinese Automobile Industry, pointing out the aims to produce 0.5 million pure electric power automobiles, plug-in hybrids and normal hybrids in three years, accounting for 5% market share in automobile market. It was also stipulated that all Chinese domestic automobile manufacturers must have the certified automobile products of new energy and energy alternatives. The development focuses of Chinese new energy automobile industry are pure electric automobiles, plug-in hybrids, special engines, power modules, driver components and optimal design etc.

Chinese government promises that they will provide finance and tax relief for the new energy automobiles. They will encourage various government departments to use the new energy automobiles. During 2009 to 2011, Chinese government will invest 10 billion Yuan (1.46 billion US Dollars) to support the development of new energy automobiles, technological innovations and the research of special parts.

It is estimated that the sale volumes of new energy automobile will account for 5 to 10% in the whole Chinese automobile sale volumes in 2012.

The author investigated and analyzed the manufacturers, sale enterprises and the customers in China's new energy automobile industry. The author wrote this report with abundant valuable second-hand information.

More following information can be obtained in this report:
- Present Technology in China's New Energy Automobile Industry
-Market Scale of China's New Energy Automobile Industry
- Demands of China's New Energy Automobile Industry
- Analysis of Chinese Government Support Policies to China's New Energy Automobile Industry
- Analysis of the Types and Prices of the Major New Energy Automobiles on Sale in Chinese Market
- Analysis of the Manufacturers in China's New Energy Automobile Industry
- Analysis of the Sub-sectors in China's New Energy Automobile Industry
- Analysis of the Development Trends in China's New Energy Automobile Industry
- Analysis of the Factors Affecting the Development of China's New Energy Automobile Industry"
"By the end of 2008, the market share of Chinese new energy automobile was less than 1%. Market demand was the dominant factor determining the development of Chinese new energy automobile industry. Because of the huge investment in the research of energy-saving and new energy automobiles and high production costs, the price of new energy automobiles is very high.  

According to a survey, the production cost of hybrid is seven thousand to ten thousand US Dollars higher than that of traditional types and public automobiles are forty thousand US Dollars higher. Roughly estimated by 20% rates of economizing gasoline, hybrid must drive two hundred kilometers and public automobiles must drive five hundred thousand kilometers in order to supplement the added costs of one-time purchase. The costs of pure electric automobiles and fuel cell automobiles are even high. At present, the sale price of pure electric and fuel cell public automobiles are twice and five times of traditional similar types respectively. It is hard to supplement the added costs by oil efficiency in its life period.

From the part of the development of Chinese new energy automobile, hybrids and pure electric automobiles are the most popular. However, fuel cell automobiles and solar automobiles cannot enter into the market because of expensive costs and unsteady functions.

Although Chinese government issued policies to encourage people to buy new energy automobile and relieve the buyers who are fit the relief conditions, the buyers paid more attention to the final sale price and usage cost.

As Puris was the hybrid type with the largest sale in China, it began to sell in China at the end of 2005. By the end of 2008, the total sale volumes in three years were less than three thousand and five hundred. In 2008, its sale volumes in China were only eight hundred and ninety-nine. It was trial compared with the total sales of three hundred sixty-six thousand of FAW.
The sale volumes of another type of CIVIC were less than three hundred in 2008 in Chinese market, still in the beginning stage. The monthly sale volumes of LaCrosse were less than one hundred. Its individual share was also small, most of which were companies and governments.

It was similar for these hybrids in Chinese market. The total sale volumes of them did not reach to two thousand, less than 0.04% of the total sales of five million forty thousand. In the beginning of 2009, Lexus launched its third luxurious hybrid??GS450h. It was doomed that it only attracted a small parts of rich men's attentions because of its near nine hundred thousand Yuan (one hundred thirty thousand US Dollars)

As far as individual customer is concerned, the hybrid is fuel efficiency, but its price and repair cost are also very high.

Apart from the private buyers, taxi companies with government relief are also hard to make a decision to buy new energy automobiles. Although the government has relieved parts of the price, the real price of new energy automobiles is still higher than that of internal combustion automobiles. Meanwhile, it is inconvenient to preserve.

In the beginning of 2009, the sale price of a new CIVIC automobile was one hundred seventy-six thousand and eight hundred (twenty-five thousand and eight hundred US Dollars). But the hybrid of CIVIC was two hundred sixty-nine thousand and eight hundred (thirty nine thousand and four hundred US Dollars). Because of the narrow margin of equipment, most customers could not choose the hybrid of CIVIC. After all the price differ was near to ninety-three thousand (thirteen thousand and six hundred). The sale price of PURIS was between two hundred sixty thousand (thirty eight thousand US Dollars) and three hundred thousand (forty-three thousand and eight hundred), ten thousand US Dollars higher than other internal combustion engines of the similar type. Although the sale price of Chinese domestic hybrid, such as BYD, was less than 30 thousand US Dollars, it was higher than other internal combustion engines of the similar type.

Under the circumstances of the same price, most Chinese customers choose the automobile with high quality equipments and ignore fuel efficiency.

Compared with cars, it is possible for Chinese new energy passenger automobiles to develop first. At present in China, passenger automobiles are mainly purchased by the enterprises of public transportations and transportations etc. The sales and management of the products are convenient and the relief is pointed. Therefore, the manufacturers of passenger automobile benefit more than the manufacturers of Chinese new energy automobile in its infancy and develop quickly. "


Please visit    WWW.SHCRI.COM to get more details about this report

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The primary and secondary research was conducted by consultants in China who know the industry and the local markets well.

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Last Updated:Mar 10, 2009
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