China New Energy Vehicle Production Registers First Decline in Q1 2017

Published: May 16, 2017 14:43 (GMT+8)
China produced 471,000 sets of new energy vehicles in Q1 2017, down 2.5% from 483,000 sets seen at the same period of 2016, and down 80% compared to Q4 2016’s level.

SHANGHAI, May 16 (SMM) – China’s new energy vehicle production will increase sharply in the second quarter of 2017, mainly driven by electric passenger vehicle, with the ending of new policy adjustment, GGII forecasts.

China registered first decline in new energy vehicle production in the first quarter of 2017 due to policy adjustment, falling subsidy, 2017 Chinese New Year holiday, re-audit on New Energy Vehicles Recommended Catalogue and unimplemented policies from local governments, reported by gg-lb.com.

According to GGII, China produced 471,000 sets of new energy vehicles in Q1 2017, down 2.5% from 483,000 sets seen at the same period of 2016, and down 80% compared to Q4 2016’s level. Passenger vehicle production rose 17.2% YoY to 43,600 sets, while that of bus declined 71.2% YoY to 2,233 sets and that of special purpose motor vehicles dropped YoY to 1,284 sets.

China Li-Ion Battery Market to Reach 82.18GWH in 2017

Two factors are attributed to the decline in production in Q1 2017.

First, subsidy of new energy bus depends on energy density of battery, while high-capacity LFP battery capacity is limited in China.

Second, China strengthens inspections on new energy vehicle industry and requires re-audit on New Energy Vehicles Recommended Catalogue, which takes a long time.

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