BEIJING--(BUSINESS WIRE)--Currently in China, despite its fast-paced economic development, challenges like pollution, traffic congestion and energy shortage abound. While China's recoverable oil reserve per capita is less than 10% of the world’s average, it is one of the largest greenhouse gas producers. Under the circumstances, new energy vehicle is of critical importance for China's sustainable development. Since the state issued the development plan for new energy vehicles in 2009, China’s new energy vehicle output skyrocketed to 5,300, up 165% year-on-year.
However, the growth of the industry has slowed down ever since due to the high production costs and incomplete supporting facilities. In 2011, the output of new energy vehicles was 8,400, up 16.5% from the previous year, representing a much lower growth rate from 2010’s 35.8%. In response, the Chinese government has continued to roll out incentives to build a more promising future for the new energy vehicle industry.
Figure 1 Output of China's New Energy Vehicles, 2007-2011
Source: CCID Consulting, February 2012
The new energy auto industry is highlighted as a strategic emerging industry in China’s 12th Five-year Plan for National Economic and Social Development issued in March 2011. According to the Plan, more importance should be attached to the development of plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs) and full cell vehicles (FCVs), and R&D and commercialization demonstration projects of PHEVs and BEVs shall be promoted. In addition, the relevant ministries and commissions, including the Ministry of Science and Technology, the Ministry of Finance, the Ministry of Industry and Information Technology and the National Development and Reform Commission, have also unveiled support policies for the new energy vehicle industry.
Meanwhile, multiple new energy vehicle technologies are being encouraged in China. On one hand, the market holds a huge potential to absorb different technologies; on the other hand, with the immaturity of those technologies and limited resources, the industry will not risk to rely on one single technology that may easily reach a bottleneck. Specifically, HEVs combining the advantages of ICE vehicles and electric vehicles are the first to be industrialized and will enjoy priority in the short and medium run. BEVs boasting zero emission will lead the development of new energy vehicle technologies in the future. It should be noted that FCVs are also extensively recognized worldwide owing to the independence of oil during their life cycle.
Considering the huge R&D investment, the state has tried to promote R&D activities related to new energy vehicles by initiating key projects, which have harvested a lot of findings and helped the industrialization of new energy vehicles. Meanwhile, the 11th Five-year Plan for the auto industry and relevant policies issued by the local governments provide basic standards, safety standards, performance evaluation, generality and interchangeability standards, with reference to the foreign materials while also considering the domestic R&D and production capability. By now, a complete standard system has been established for new energy vehicles, parts and infrastructures, and the industry has seen independent innovations in some key areas. It is believed that the continuous improvement of new energy vehicle technologies will keep boosting the development of China's new energy vehicle industry.
About CCID Consulting Co., Ltd.
CCID Consulting Co., Ltd., the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Xi’an, Wuhan and Nanjing with over 300 professional consultants. The company’s business scope has covered over 200 large and medium-sized cities in China. CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services, investment and financing, and M&A. The company's customers range from government departments at all levels and diversified industrial parks, to industrial users in strategic emerging industries in new generation information technology, energy saving and environmental protection, biological science and technology, high-end equipment manufacturing, new materials, and new energy. CCID Consulting commits itself to become the No. 1 advisor for urban economy, the No. 1 consultancy for enterprise management, and the No. 1 brand for informatization consulting in China.