cens logo

China's New Energy Vehicle Industry to Hum in 2014

The industry is expected to keep booming on both favorable policies and fueled market demand

Mar 06, 2014 | By Michelle Hsu


Official statistics show China's new energy vehicle production hit a record high of 17,533 units in 2013, representing an annual growth of 39.7% and including 14,243 pure electric-powered vehicles and 3,290 plug-in hybrids. Meanwhile, new energy car sales volume grew accordingly, totaling 14,604 pure electric-powered vehicles and 3,038 plug-in hybrids, up at a similar rate of 37.9%.

China’s new energy vehicle industry scored a record annual production of 17,533 vehicles in 2013, with annual growth of 39.7%.China’s new energy vehicle industry scored a record annual production of 17,533 vehicles in 2013, with annual growth of 39.7%.

In 2014 China's new energy vehicle industry is expected to continue booming, bolstered by both favorable policies and  market demand.

In the beginning of 2014, the Ministry of Finance (MOF), along with three other ministerial-level government agencies, jointly issued the guideline “Notice Concerning Future Promotion of New Energy Vehicle Applications”  to subsidize buyers of new energy vehicles.

So the government will continue subsidizing the new energy vehicle industry, which was previously set to be terminated at the end of 2015, to maintain policy continuity and increase governmental support.

Meanwhile, the subsidy rates have been cut for pure electric vehicles, plug-in hybrids, and fuel cell cars for 2014 and 2015 as follows: in 2014 such subsidies will be reduced 5% from 2013 levels, and in 2015 by 10% from 2013 levels, effective January 1, 2014. The adjusted rates are 50% lower than the previously proposed of 10% and 20% for the two years respectively.

China’s new energy vehicle market is set to grow in 2014.China’s new energy vehicle market is set to grow in 2014.

The modest cuts demonstrate Beijing government's determination to continue  subsidizing to bolster the development of China's new energy vehicle industry, which, given its disappointing market performance over the past few years, was once considered an industry burning money without making substantial development.

“After the above subsidy policy expires, the central government will continue with the subsidies and announce specific measures separately,” states the guideline.

Favorable Environment
Meanwhile, the MOF website published a list of the second batch of cities designated to promote the use of new energy vehicles, including 12 major cities in China as Shenyang, Changchun and so on.

Therefore market analysts believe that the Beijing government won't terminate its subsidy policy in the short term and will help improve the general environment to faciliate development of the new energy vehicle industry, whose sales volume growth is expected to speed up in 2014.

In fact, both local and central governments have been working on new energy vehicle policies.  It's been reported that on January 28, Beijing, a first- batch city to promote the use of new energy vehicles, announced the country's first new energy vehicle management model:  “Beijing City Management of  Demonstration and Application of New Energy Passenger Cars,” as the guidelines to subsidize small and micro pure electric passenger cars. Meanwhile, the Beijing City government promoted several new energy passenger cars in February, saying that the vehicles ideally suit urban use for Beijing residents.

Earlier, Tianjin City published the “Tianjin Energy-saving and New Energy Vehicle Demonstration and Industry Development Plan (2013-2020)” on January 6, under which Tianjin will gradually promote new energy vehicles for private use, as well as related infrastructure such as charging equipment and so on.

Market analysts believe that the development of new energy vehicles has become a strategic national plan to be integrated with air pollution control programs aimed at the now infamous smog besetting major Chinese cities.

Strong Market Enthusiasm
Adding fuel to these favorable policies is the high degree of enthusiasm being felt amid the new energy vehicle market. Domestic and international new energy carmakers continue to drive this market boom. Analysts point out that 2014 will be robust for the new energy vehicle market, with  domestic and international new energy auto makers to continue vying for the Chinese market and incurring change.

On January 23, the American Tesla Motors officially announced the launch of its flagship model Model S online design studio in China. At the Guangzhou Auto Show held last November, BMW's joint venture in China, BMW Brilliance Automotive, debuted its first own brand of EVs, to be launched this year. FAW-Toyota joint venture brand Ranz's first pure electric car is also expected to be available this year.

BYD is a frontrunner of China’s new energy vehicle industry.BYD is a frontrunner of China’s new energy vehicle industry.

China's new energy auto manufacturers are also making  good progress.  As of the end of 2012, total investment in SAIC's new energy vehicles reached 4.6 billion yuan, of which investment in research and development in its Roewe 550 plug-in hybrid vehicle accounted for 1.16 billion. The 2012 Beijing Auto Exhibition launched the BYD 'Qin' hybrid sedan, which caused market buzz and went on sale in dealers after the Spring Festival.

SAIC has invested considerably in R&D of Roewe 550 plug-in hybrid vehicles.SAIC has invested considerably in R&D of Roewe 550 plug-in hybrid vehicles.

Peripheral Industries
In addition to manufacturing of new energy cars, charging posts, lithium batteries and other makers of related products are also benefiting.

On January 28, the State Grid Beijing Electric Power Company announced that from the beginning of this year, Beijing City will create an EV charging network with a 5.5 km radius, to fully cover city districts and suburban new town districts by 2017.

The Hebei Electric Power Company said publicly on January 20 that Hebei Province will build two more electric car charging stations and 100 charging posts, to meet demand from public transport, taxis and other EVs.

As for production of EV  batteries, data shows that there are over 100 production enterprises in China, with total investment in excess of 10 billion yuan, and total capacity of nearly 20 billion watts.

Market observers predict continued momentum behind new energy vehicle policies and automotive market, which are expected to hum at full tilt in 2014. But uncertain sales of  new energy vehicles will dictate the final performance of the industry as whole.

Industry In-Focus

SINOSTEEL Corporation: Rising price in Steel</h2>

SINOSTEEL Corporation: Rising price in Steel

Jun 05, 2020

Brazil’s new crown pneumonia epidemic has rapidly increased. Brazil’s Vale, the world’s largest iron ore producer, is facing an out-of-control impact. The market is worried that iron ore production and sales will be affected. new highs. Experts from Sinosteel (2002) evaluated that steel prices will rise steadily under the effect of rising costs, with a promising outlook. According to a legal p...

Apple Invests Millions in LED Plant in Taiwan</h2>

Apple Invests Millions in LED Plant in Taiwan

Jun 01, 2020

Apple is considering to invest over US$330 million in a factory in northern Taiwan to manufacture both LED and micro-LED displays for its iPhones, iPads, MacBooks, and other new devices. Apple is teaming up on the new factory with Epistar, Taiwan's top LED producer, and Taiwanese LCD panel maker, AU Optronics. The plant will be located in the Longtan branch of the Hsinchu Science Park and Appl...

Taiwan Machinery Was Applauded in COVID-19</h2>

Taiwan Machinery Was Applauded in COVID-19

May 18, 2020

What the epidemic showed was the amazing flexibility of Taiwan's machine tool industry. Taiwan, which has allowed the semiconductor industry to specialize in the past, has finally realized that these machine tool industries with amazing strength are the "invisible champions" of Taiwan's economy. In early February, three companies -- Habor Precision, Tongtai Machine & Tool and Taiwan Takisawa -...

Industry Reports

K, the leading global plastic and rubber trade fair (Photo courtesy of Messe Düsseldorf/ctillmann)

K, The World's Leading Trade Fair for Plastic and Rubber Industry

Jul 24, 2020

2019 K Show, the leading global trade fair for the plastics and rubber industry, had been held in Düsseldorf on 16-23 October, 2019. There were 3,330 exhibitors from 63 nations proved impressively: plastics continue to be an innovative, indispensable material. But they also unanimously underscored the necessity of having operational circular economies along the complete material chain and to this...

Photo courtesy of CENS

Digital Healthcare & Technology at the Heart of Las Vegas CES 2020

Jul 14, 2020

■ Hubert Chih The number of healthcare exhibitors at the 2020 CES in Las Vegas increased significantly by 23% from 2019. According to the analysis and report by the CES organizer, digital healthcare and technology were the focus in the healthcare exhibition. In addition to the continued expansion of healthcare coverage, the reduction of healthcare costs, the improvement of effectiveness and th...

The Taiwan Hardware Show sees global buyer attendance. (Photo provided by Kaigo Co.)

Taiwan's Hand Tools Seeking Opportunities Amid Global Crisis

Jul 10, 2020

Due to the COVID-19 pandemic sweeping the globe, most of the international hardware shows slated for this year has been moved to 2021. However, as Taiwan’s efforts combating the new virus has proven to be successful, the 2020 Taiwan Hardware Show (THS) will continue as scheduled, beginning on Oct. 13 and ending on the 15th at the Taichung International Exhibition Center, thus becoming the only sh...

Supplier News

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry</h2>

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry

Jul 23, 2020

Kung Hsing Plastic Machinery Co., LTD., founded in 1972, is the brainchild of the company President Tsai Chin-lien’s over 48 years of experience in designing and producing extrusion machines. The firm stood by its belief to uphold integrity and offer the best quality and services, eventually becoming a leader in the extrusion machinery industry in Taiwan. Kung Hsing currently has two factories; t...




Jul 21, 2020

■ Tseng Lung-nan Intype Enterprise has built up 55 years of experience in producing extruders, though the firm is placing greater consideration on rapidly degrading of the global environment. In the past 20 years, Intype has become an active contributor to building up a global ecosystem, enabling them to reuse the products manufactured by their own extruders and avoid further waste. The firm t...


YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility </h2>

YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility

Jul 14, 2020

■Hsiao Yung-le Yifeng Technology Co., Ltd. specializes in the research and development of carbon fiber transmission shafts and the manufacture of carbon fiber related products.The carbon fiber material has the characteristics of lightweight, impact resistance, fatigue resistance, and corrosion, and chemical stability is quite high. The product type is increasing in the extensive range with an ...


Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...

Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

Exhibition Highlights

Koelnmesse (Beijing) Co., Ltd.

Announcement on Postponement of China International Hardware Show 2020 (CIHS 2020)

Jul 10, 2020

In view of the continuous spreading of COVID-19 all over the world and the latest epidemic prevention requirements of China and the government of Shanghai, in order to guarantee the health and safety of exhibitors, purchasers and professional visitors, China National Hardware Association and Koelnmesse have prudently decided to postpone China International Hardware Show 2020 (CIHS 2020) from Augu...

Automechanika Shanghai 2020 creates channels for cross-sector collaboration</h2>

Automechanika Shanghai 2020 creates channels for cross-sector collaboration

Jun 16, 2020

This year, Automechanika Shanghai continues to serve the entire automotive value chain by offering opportunities for information exchange, marketing, trade and education. Both vertically and horizontally, from OE, vehicle production to the aftermarket, it incorporates all elements of manufacturing, supply networks, services, new business models and information technology. Companies across the...

Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...