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New Energy Cars - China - April 2017

“The new energy car market in China is steering from policy-driven to consumption-driven, even though it will be facing a short-term challenge after the subsidy cut. Pure electric passenger cars will meet greater success in the future but plug-in hybrid is still the most popular choice for now. Opportunity lies in communicating with 25-29-year-olds living in tier two to three cities with a middle to low income, who are interested in new energy cars but are unconvinced.”
– Aaron Guo, Senior Analyst, China

This report answers the following questions:

  • Where will the new energy car market head after subsidy cut?
  • What could be the way of storytelling in marketing?
  • Who are the key target audiences?

For the purpose of this Report, ‘new energy cars’ means passenger cars that comply with the requirements specified in the Catalogue of the Models of New Energy Vehicles Exempt from Vehicle Purchase Tax and the Catalogue of Recommended Models for New Energy Automobile Demonstration, Popularisation and Application announced by the state. New energy cars here include pure electric passenger cars, plug-in hybrid electric passenger cars and fuel cell electric passenger cars.

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Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
        • Definition
          • Figure 1: Definition of different monthly household income groups, by city tier, November 2016
        • Excluded
        • Executive Summary

            • The market
              • Figure 2: Sales volume and growth rate of new energy passenger cars in China, 2011-16
              • Figure 3: Best- and worst-case forecast of new energy cars sales volume, 2011-21
              • Figure 4: New energy passenger car sales volume and growth rate, by model type, 2013-20
            • Companies and brands
              • Figure 5: Market share of new energy passenger car brands, 2015 and 2016
            • The consumer
              • New energy cars can answer most of the daily commuting demand
                • Figure 6: Daily driving distance, January 2017
              • Overall optimistic about new energy cars
                • Figure 7: New energy car perception, by type of model considering, January 2017
              • Different brands are recognised by different consumer groups
                • Figure 8: New energy car brand awareness, January 2017
                • Figure 9: Age groups with high awareness of selected new energy car brands, January 2017
              • PHEPC is preferred by new energy car buyers currently
                • Figure 10: Purchase plan, by monthly household income, January 2017
              • What we think
              • Issues and Insights

                • Where will the new energy car market head after subsidy cut?
                  • The facts
                    • The implications
                      • Figure 11: ‘Electric highways’ in Germany
                    • What could be the way of storytelling in marketing?
                      • The facts
                        • The implications
                          • Figure 12: The father escorts the son to school bus quietly in a Lexus
                          • Figure 13: Getting tattooed in a moving car, by Continental
                          • Figure 14: Acciona in the race
                        • Who are the key target audiences?
                          • The facts
                            • The implications
                                • Figure 15: Metro line printed with song comments from NetEase Cloud Music
                            • The Market – What You Need to Know

                              • 20-30% YOY growth for next five years to 2021
                                • Less driven by the government policy
                                  • EPC is expected to expand faster than PHEPC
                                  • Market Size and Forecast

                                    • Market expansion slowing down
                                      • Figure 16: Sales volume and growth rate of new energy passenger cars in China, 2011-16
                                      • Figure 17: Share of sales volume of new energy passenger cars among new passenger car sales, 2011-16
                                    • A global leading new energy car market
                                      • Figure 18: Global share of accumulated new energy car sales, by country, 2011-16
                                    • Close to 800,000 units in sales volume in 2020
                                      • Figure 19: Best- and worst-case forecast of new energy cars sales volume, 2011-21
                                  • Market Drivers

                                    • The change in the government subsidies
                                      • Figure 20: New energy car subsidy cut by the Central Government, 2017
                                    • Car purchase limitations of large cities
                                      • Figure 21: Car-purchasing limitations of each city, by vehicle type
                                      • Figure 22: New energy car sales volume in cities with and without car purchase limitations, 2016 vs 2015
                                    • Advancing battery industry
                                      • Growing number of charging facilities
                                        • Figure 23: Ratio of the number of charging piles against new energy passenger car parc, 2014-20
                                      • Basic commuting demands of car buyers
                                        • New models to release
                                        • Market Segmentation

                                          • EPC takes the lion’s share
                                            • Figure 24: Share of new energy passenger car sales volume, by model type, 2011-16
                                          • EPC had a faster sales growth than PHEPC in 2016
                                            • Figure 25: New energy passenger car sales volume and growth rate, by model type, 2013-20
                                          • EPC sales to exceed 719,000 units in 2021
                                            • Figure 26: Best- and worst-case forecast of pure electric passenger car (EPC) sales volume, 2011-21
                                            • Figure 27: Best- and worst-case forecast of plug-in hybrid electric passenger car (PHEPC) sales volume, 2011-21
                                        • Key Players – What You Need to Know

                                          • BYD leads while BAIC enjoys a significant growth
                                            • Brands highlight different features for different levels of models
                                              • Creative marketing channels exist
                                              • Market Share

                                                • BYD took 30% of the new energy car market in China
                                                  • Figure 28: Market share of new energy passenger car brands, 2015 and 2016
                                                  • Figure 29: Sales volume of top 10 new energy passenger car models in China, 2016
                                                • BAIC had an excellent sales performance in 2016
                                                  • Geely Group had the second-largest share as a whole
                                                  • Competitive Strategies

                                                    • Introducing hybrid versions of existing models
                                                      • Figure 30: Examples of new energy car models to be released in 2017
                                                    • Highlighting different features in commercials
                                                      • Figure 31: Tagline of Model S
                                                      • Figure 32: Tagline of BMW i3
                                                      • Figure 33: Tagline of BAIC EU series
                                                      • Figure 34: Tagline of BYD Qin EV 300
                                                      • Figure 35: Tagline of Chery eQ
                                                      • Figure 36: Tagline of Zotye Cloud 100
                                                    • Starting from high-end models
                                                      • Figure 37: NextEV’s EVE concept
                                                    • Founding own battery factory
                                                      • Figure 38: Tesla’s ‘Gigafactory’
                                                    • Applying for being added into the Catalogues
                                                    • Who’s Innovating?

                                                      • Producing for rent
                                                        • Figure 39: ROEWE e50 on the homepage of EVCard
                                                      • Branding through drag racing
                                                        • Figure 40: Lucid’s Enda in drag race
                                                        • Figure 41: One of the Fast4Ward races
                                                      • Introducing comprehensive transport solutions
                                                        • Figure 42: BYD’s Cloud Rail concept
                                                    • The Consumer – What You Need to Know

                                                      • 20-40km daily commuting distance on average
                                                        • Most are optimistic about new energy cars
                                                          • PHEPC is preferred by the urbanites currently
                                                            • Pickier than conventional car buyers
                                                            • Average Daily Driving Distance

                                                              • An average daily driving distance of 20-40km
                                                                • Figure 43: Daily driving distance, January 2017
                                                              • Males drive longer every day, mainly driven by the fortysomethings
                                                                • Figure 44: Average daily driving distance, by gender and age, January 2017
                                                              • High earners have a wider activity range
                                                                • Figure 45: Selected car usage occasions, by monthly household income, December 2014
                                                              • Mid-west residents have more long-distance driving demands
                                                                • Figure 46: Average daily driving distance, by region, January 2017
                                                              • Work culture affects driving distance
                                                                • Figure 47: Average daily driving distance, by company type, January 2017
                                                            • New Energy Car Perceptions

                                                              • More than half think this will be the mainstream choice in the future
                                                                • Figure 48: New energy car perception, January 2017
                                                              • EPC is viewed to be closer to living style
                                                                • Figure 49: New energy car perception, by type of model considering, January 2017
                                                              • Different gender and age groups have vastly different understandings
                                                                • Figure 50: Claim rates on selected perceptions, by age group, January 2017
                                                                • Figure 51: Claim rates on selected perceptions, by 20-24-year-old males and females, January 2017
                                                              • High earners view new energy cars more than solely commuting tools
                                                                • Figure 52: Selected new energy car perception, by monthly household income, January 2017
                                                            • Brand Awareness

                                                              • BYD enjoys top brand awareness
                                                                • Figure 53: New energy car brand awareness, January 2017
                                                              • Brand names are easier to remember than logos
                                                                • Brand awareness varies between different age groups
                                                                    • Figure 54: Age groups with high awareness of selected new energy car brands, January 2017
                                                                  • Those with high MHI in tier two to three cities have top awareness
                                                                    • Figure 55: Awareness of new energy car brands, by city tier and MHI, January 2017
                                                                • Purchase Plan

                                                                  • More consumers are considering new energy cars compared to 2015
                                                                    • Figure 56: Percentage of car buyers who are considering new energy models, January 2017 vs July 2015
                                                                  • PHEPC is being considered slightly more by urban consumers currently
                                                                    • Typical buyers of EPC and PHEPC
                                                                        • Figure 57: Purchase plan, by monthly household income, January 2017
                                                                    • Purchase Influencing Factors

                                                                      • New energy car buyers are more cautious than conventional car buyers
                                                                          • Figure 58: Car purchasing influencing factors, by new energy car buyers and conventional car buyers, July 2016 and January 2017
                                                                        • EPC buyers are pickier and they value the opinions of others
                                                                          • Figure 59: Gap between the car purchasing influencing factors of PHEPC buyers and EPC buyers, January 2017
                                                                      • New Energy Car Purchasing Barriers

                                                                        • Very small amount of new energy car non-buyers
                                                                          • Progress in convincing stubborn car buyers
                                                                            • Figure 60: Barriers of purchasing new energy cars, January 2017 vs July 2015
                                                                        • Meet the Mintropolitans

                                                                          • MinTs require the widest activity range
                                                                            • Figure 61: Daily driving distance, by MinTs and Non-MinTs, January 2017
                                                                          • MinTs have more positive associations with new energy cars
                                                                            • Figure 62: Gap between MinTs and Non-MinTs on new energy car perception, sorting by gap, January 2017
                                                                          • MinTs prefer EPC to PHEPC
                                                                            • Figure 63: New energy car purchase plan, by MinTs and Non-MinTs, January 2017
                                                                          • MinTs value brand image more than Non-MinTs
                                                                            • Figure 64: Gap between the purchasing influencing factors of MinTs and Non-MinTs, sorting by gap, January 2017
                                                                        • Appendix – Market Size and Forecast

                                                                            • Figure 65: Total sales volume of new energy cars, 2011-21
                                                                        • Appendix – Market Segmentation

                                                                            • Figure 66: Total sales volume of pure electric passenger cars, 2011-21
                                                                            • Figure 67: Total sales volume of plug-in hybrid electric passenger cars, 2011-21
                                                                        • Appendix – Methodology and Abbreviations

                                                                          • Methodology
                                                                            • Fan chart forecast
                                                                              • Abbreviations

                                                                              Companies Covered

                                                                              To learn more about the companies covered in this report please contact us.

                                                                              New Energy Cars - China - April 2017

                                                                              US $3,990.00 (Excl.Tax)