Gasgoo (Shanghai, August 30th)—Foreign media reported that there are more than 200 electric vehicle manufacturing companies in China. The government will force some companies to leave the market by improving technical standards, and control the number of manufacturers at about ten. One senior manager in the industry said that, the policy will force 90% start-up companies to leave the market.
Currently, only two alternative energy vehicle companies obtained permissions of vehicle manufacturing from NDRC, and three companies are under application. Under the background of fighting city haze, more than USD 2b investing funds are flowing into alternative energy vehicle market, including funds from Ma Yun, Guo Taiming and Jia Yueting. The favorable policies from government also bring some trouble. Most companies lack related technologies or knowledge, lagging far behind from Tesla and GE.
The alternative energy vehicle companies are facing the most serious over-capacity and high-inventory problems in the world. With the promotion of cheap models and increasing costs induced by higher emission standards, the manufacturers have to burden narrowing profits. Last year, China overtakes US as the largest alternative energy vehicle market, including BEV, PHEV and fuel cell vehicles. According to data from CAAM, domestic manufacturers sold 331,092 units alternative energy vehicles in 2015. The government target is set to sold 3m units by 2025. In the meantime, government will give a 60% subsidy. Currently, more than 4,000 models are under development or research.
However, the government is raising entry threshold. Ministry of Industry and Information published an Exposure Draft of Regulation on Alternative Energy Vehicles, listing seventeen important technologies of manufacturers to make sure the industry’s healthy development.
