Report Summary
“Despite the auto market’s sales volume being impacted by COVID-19, the NEV segment is growing. As the government continues to launch favourable policies, conventional car companies, new car manufacturers and cross-category players are tapping into the NEV category, trying to leverage developments in the industry. NEV brand images are becoming more segmented. With strong technological propositions and excellent user experience, new automotive brands are competing on an equal footing with the brand value of NEVs from conventional luxury brands.
Consumers increasingly recognise NEVs’ performance and intelligent configuration, and believe owning an NEV can express support for the environment, make one fashionable and be a source of greater pride. At the same time, although mileage and charging issues have considerably improved in recent years, consumers’ expectations on these aspects have still not been met. As consumers expect more from NEVs, especially premium NEVs, the competition over premium NEV models will be fierce.”
– Austin Yuan, Research analyst
This report will look at the following areas:
- Changes in attitudes towards NEVs
- NEV brand images
- Purchase motivations of NEVs
- Purchase concerns of NEVs
- Acceptable price range for BEVs
- Test drive channels of NEVs
Table of Contents
-
Overview
- What you need to know
- Key issues covered in this report
- Definition
- What you need to know
-
Executive Summary
-
- The market
- NEV sales volume in 2021 expected to be over 60%
- Figure 1: Forecast of total NEV sales volume, China, 2015-25
- Companies and brands
- SAIC GM Wuling and Tesla biggest winners in the BEV market, represent growth trend at the higher and lower ends
- Figure 2: Top 10 bestselling BEV models by sales volume, 2020
- The consumer
- Even more positive towards NEVs
- Figure 3: Attitudes towards NEVs, April 2021
- Tesla boasts image for innovative technology and experience, while NEV brands from BBA still regarded well
- Figure 4: NEV brand image, April 2021
- Environment second biggest purchasing motivation after cost
- Figure 5: Purchase motivations of NEV, April 2021
- Mileage range and charging do not meet consumers’ expectations yet
- Figure 6: Purchase concerns of NEVs, April 2021
- Brand equity of conventional luxury brands carries over to their NEVs
- Figure 7: BEV price acceptance range, April 2021
- Test drive experience not a purchase trigger for NEVs
- Figure 8: Test drive channels of NEVs, April 2021
- What we think
-
-
Issue and Insights
- Improve user experience via digitalised services
- The facts
- The implications
- Figure 9: My BMW app, 2020
- Polish brand image with New Retail service model
- The facts
- The implications
- Figure 10: SAIC R Store experience centre, 2020
- Convey environmental protection with eco materials
- The facts
- The implications
- Figure 11: IONIQ5 from Hyundai, 2021
- Improve user experience via digitalised services
-
The Market – What You Need to Know
- NEV new car sales volume exceeds two million units for two consecutive years
- NEV market switches from being subsidy-driven to market-driven
- BEVs gain a bigger share, while Tesla becomes the biggest winner
- NEV new car sales volume exceeds two million units for two consecutive years
-
Market Size and Forecast
- NEV sales volume exceeds one million units in 2020, accounting for 5.5% of total new passenger cars sales volume
- Figure 12: Sales volume and growth rate of NEVs and new passenger cars in China, 2015-20
- Figure 13: Sales volume and growth rate of BEVs and PHEVs, 2016-20
- NEV sales volume expected to triple by 2025
- Figure 14: China NEV market sales volume and forecast, 2015-25
- NEV sales volume exceeds one million units in 2020, accounting for 5.5% of total new passenger cars sales volume
-
Market Factors
- Traffic restriction policies: cities with licence plate limitations are still the main engines of NEV sales volume
- Figure 15: Ranking of NEV sales volume, by city, 2020
- Subsidies policy: NEV sales volume rebounds to stability after a huge drop in 2020
- Figure 16: Monthly sales volume trend of NEVs, 2020
- Infrastructure policy: government report appeals for car consumption rise and announces more power swap stations to facilitate growth of NEVs
- Figure 17: Number of public charging piles in China, 2015-20
- Traffic restriction policies: cities with licence plate limitations are still the main engines of NEV sales volume
-
Market Segmentation
- BEVs may take even more market share from PHEVs
- Figure 18: Total China BEV market sales volume and forecast, 2015-25
- Figure 19: Shares of BEVs and PHEVs, by sales volume, 2015-20
- Significant growth trend at the premium and lower ends
- Figure 20: Top 10 bestselling NEV models by retail sales volume, 2020
- Ranking of new energy SUV sales volume – top three are all new entrants
- Figure 21: Ranking of new energy SUV models, by sales volume, 2020
- BEVs may take even more market share from PHEVs
-
Key Players – Market Share
- SAIC GM Wuling and Tesla were the biggest winners in the BEV market in 2020
- Figure 22: Top 10 bestselling BEV manufacturers, by sales volume, 2020
- In PHEV market, BYD retains top spot and Leading Ideal emerges as a rising star in 2020
- Figure 23: Top 10 bestselling PHEV manufacturers, by sales volume, 2020
- SAIC GM Wuling and Tesla were the biggest winners in the BEV market in 2020
-
Competitive Strategies
- FAW-Volkswagen Audi’s rejuvenation strategy
- Figure 24: Audi Channel, 2020
- ORA Good Cat’s female focused strategy
- Figure 25: ORA Good Cat offline marketing event, 2021
- FAW-Volkswagen Audi’s rejuvenation strategy
-
Who’s Innovating?
- Reduce carbon emission and increase mileage range
- Figure 26: Magna all-new battery electric driving system
- Solar roof for future mobility
- Figure 27: Polycarbonate glazing solar roof
- Improved road safety with eye-tracking glasses to track driver’s gaze
- Figure 28: Eye-tracking glasses for driving
- In-cabin sensing system to prevent children being left unattended inside cars
- Figure 29: Usage example of in-cabin sensing system
- World’s first street-legal flying car
- Figure 30: Flying car PAL-V Liberty
- The largest curved control screen
- Figure 31: Interior designs of Mercedes-Benz EQS
- Reduce carbon emission and increase mileage range
-
The Consumer – What You Need to Know
- Even more positive towards NEVs
- Tesla best in innovative technology and experience, while NEV brands from BBA still held in positive regard
- Environment second biggest purchasing motivation after cost
- Mileage range and charging do not meet consumers’ expectations yet
- Brand equity of conventional luxury brands still carries over to their NEVs
- Test drive experience does not become a purchase trigger for NEVs
- Even more positive towards NEVs
-
Changes in Attitudes towards NEVs
- Even more positive towards NEVs
- Figure 32: Attitudes towards NEVs, April 2021
- Sense of pride and fashion more recognised by more mature consumers
- Figure 33: Attitudes towards NEVs, by age, April 2021
- NEVs’ value for money more recognised by intended car buyers with higher budget
- Figure 34: Attitudes towards NEVs, by car purchasing budget, April 2021
- Even more positive towards NEVs
-
NEV Brand Image
- Tesla one to beat in innovative technology and experience, while NEV brands from BBA still viewed positively
- Figure 35: NEV brand image, April 2021
- Tesla experience stores in central areas working well in tier one cities
- Figure 36: NEV brand image, by city tier, April 2021
- Male consumers who have an NEV or plan to buy one hold a more positive attitude towards new automotive brands
- Figure 37: NEV brand image, by gender, April 2021
- Tesla one to beat in innovative technology and experience, while NEV brands from BBA still viewed positively
-
Purchase Motivations of NEVs
- Environment second biggest purchasing motivation after cost
- Figure 38: Purchase motivations of NEVs, April 2021
- NEV intelligent connectivity is more appealing to younger consumers who have an NEV or plan to buy one
- Figure 39: Purchase motivations of NEVs, by age, April 2021
- Environmental awareness and latest trends more influential in tier one and two cities
- Figure 40: Purchase motivations of NEVs, by city tiers, April 2021
- Maintenance and license plate benefits more valued by high-income consumers who have an NEV or plan to buy one
- Figure 41: Purchase motivations of NEVs, by household income, April 2021
- Environment second biggest purchasing motivation after cost
-
Purchase Concerns of NEVs
- Mileage range and charging do not meet consumers’ expectations yet
- Figure 42: Purchase concerns of NEVs, April 2021
- Younger consumers who have an NEV or plan to buy one have more occasions to drive and thus more concern over mileage range
- Figure 43: Purchase concerns of NEVs, by age, April 2021
- Mileage range and charging do not meet consumers’ expectations yet
-
Acceptable Price Range for BEVs
- Brand equity of conventional luxury brands still carries over to their NEVs
- Figure 44: BEV price acceptance range, April 2021
- Tesla is more accepted by older NEV owners
- Figure 45: BEV price acceptance range – Tesla, by age, April 2021
- BYD has domestic brand advantage in lower tier cities
- Figure 46: BEV Price acceptance – BYD New Energy, by city tier, April 2021
- Brand equity of conventional luxury brands still carries over to their NEVs
-
Test Drive Channels of NEVs
- Test drive experience not a purchase trigger for NEVs
- Figure 47: Test drive channels of NEVs, April 2021
- Word of mouth a vital factor in attracting consumers who plan to buy an NEV
- Figure 48: Test driving channels of NEVs, by NEV consumer type, April 2021
- More difficult to test drive for lower tier city consumers
- Figure 49: Test drive channels of NEVs, by city tier, April 2021
- Test drive experience not a purchase trigger for NEVs
-
Appendix
- Market size and forecast
- Figure 50: Total market volume of new energy cars, China, 2015-25
- Market segmentation
- Figure 51: Total market volume of pure electric new energy cars, China, 2015-25
- Figure 52: Total market volume of plug-in electric new energy cars, China, 2015-25
- Methodology
- Abbreviations
- Market size and forecast
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