market research report :electric vehicle market in china 2012
DESCRIPTION
For the complete report, get in touch with us at : [email protected] The Electric Vehicle Market in China is part of Netscribes’ Automobile Industry Series reports. Led by supportive government policies the electric vehicle market in China is expected to witness robust growth. The report begins with an overview of the different segments of electric vehicles. It is followed by the market overview section which provides a snapshot of the global electric vehicle market. A brief comparison of the EV infrastructure deployment across nations has also been covered in this section. This is followed by a brief description of the electric vehicle market in China including the planned EV targets of major cities in China. Factors driving the growth of the electric vehicle market in China are also explained in detail. Rising population and growing transport demand provides an impetus to the growth of the electric vehicle market in China. Foreign dependency on crude oil is expected to emerge as a major growth driver for the Chinese electric vehicle market. Reduction mandate of CO2 emission is expected to boost the growth prospects of the electric vehicle market in China. Per capita CO2 emission in China has grown with a CAGR of 6%. Development of EV battery manufacturers coupled with government incentives also provides a major growth opportunity for the electric vehicle market in China. The players operating in the market also face challenges which are impeding their development and growth. Electric vehicle performance has emerged as a major challenge facing the market growth. Cost constraints and battery life cycle are also expected to have an unfavorable impact on the growth of the Chinese electric vehicle market. Brief description of the key policies undertaken by the government of China with a view to develop the electric vehicle market is also highlighted in the report. Some of the major initiatives covered include development plan for fuel-efficient and new energy vehicles (2011-2020), ten cities, one thousand vehicles program and research and development support policies. Emerging trends in the electric vehicle market include product innovation, infrastructure development and growing competition. This is followed by the mergers and acquisitions section, illustrating the recent mergers and acquisition activities that have taken place in the Chinese electric vehicle market. This section includes the announced date, closing date, target, buyer/investor, seller and deal size. The competition section outlays the competitive landscape of the electric vehicle market in China briefing about the domestic and foreign players existing in the market. This section provides a three dimensional analysis of domestic key players’ revenues, profits and market capitalization. The key domestic players are ranked according to the total income and net profit. The report also features brief profiles of major domestic players in the marTRANSCRIPT
Electric Vehicles Market ChinaElectric Vehicles Market ‐ China
April 2012
Executive Summary
Market
Global electric vehicle sales is expected to reach x mn units growing with a CAGR of y% during 20‐‐‐‐‐Electric vehicle sales in China is expected to reach y mn units growing with a CAGR of z% during 20‐‐‐‐
Drivers: Challenges:
Drivers & Challenges
Drivers: Challenges:• Rising Population and Transport Demand • Foreign Dependence for Crude Oil• Reduction in CO2 Emission• Development of EV Battery Manufacturers
• Vehicle Performance• Cost Constraints• Battery Life Cycle
Government Initiatives
Fuel‐efficient and New Energy Vehicles ProgramTen Cities One Thousand Vehicles
p y• Government Incentives
State‐owned Enterprise Electrical Vehicle Industry Alliance National Renewable Energy Law Research and Development Support PoliciesInitiatives Ten Cities, One Thousand Vehicles
Program
Product Innovation Infrastructure DevelopmentTrends
Research and Development Support Policies
Competition
Major Players
Growing Competition
2ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Competition Company 1 Company 2 Company 3 Company 4
•Introduction
•Market Overview• Global
• China
•Drivers & Challenges
•Government Initiatives
•Trends
•Mergers & Acquisitionsg q
•Competition
•Key Takeaway
3ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Key Takeaway
Electric vehicle market is divided into major segments
Electric Vehicles
A B C D
• Point 1
• Point 2
• Point 1
• Point 2
• Point 1
• Point 2
• Point 1
• Point 2
4ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Led by government support, EV sales in China is expected to grow with a CAGR of x% to reach y mn units by 20‐‐
• Electric vehicle sales in China is expected to reach x mn units growing with a CAGR of y% during 20‐‐‐‐
Electric vehicles – Overview Market Size & Growth
units• In 20‐‐, China completed the construction of y EV charging stations and z EV charging poles
• China emerged as the global leader in terms of the number of charging stations and poles in 20‐‐ 400000
600000800000
1000000units
Z%
x2
g g p Several Chinese cities such as A, B, C and D has announced EV deployment targets for 20‐‐
0200000400000
20--e20--
x1
City EV target (‐‐)
Ci 1
Planned Target (20‐‐e)Automotive Industry Changes
‐‐‐ 20‐‐e
City 1 A
City 2 B
City 3 C
City 4 D
A B
5ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
City 4 DC D
Drivers & Challenges – Summary
Drivers
Rising Population and Transport Challenges
Demand
Foreign Dependence for Crude Oil
R d ti i CO E i i
Vehicle Performance
Cost Constraints
Reduction in CO2 Emission
Development of EV Battery Manufacturers
Battery Life Cycle
Government Incentives
6ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Rising population and rapid urbanization to drive the growth of electric vehicle market in China
•Finding 1• Finding 2• Finding 3
Rising Population and Transport Demand Impact
• Finding 3• Finding 4
Rise in PopulationX Initiative
1,500
Z%
D
mn
CBA
A BPlan Highlights
Point 1
500
1,000
D2%
D1%
C2%
C1%
B2%
A2%
B1%
A1%Point 2
7ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
020‐‐e20‐‐e20‐‐20‐‐
Dependency on depleting oil reserves is expected to emerge as a major growth driver for the Chinese EV market
•Finding 1• Finding 2
Foreign Dependence for Crude Oil Impact
• Finding 3• Finding 4
Dependency on Imported Crude OilDependency on Imported Crude Oil
80
%Z% x4
x32
Technology Reduction in Oil Consumption Cost Savings (USD)
20
40
60 x2
x1A x~ y% x
B z% y
8ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
020‐‐e20‐‐e20‐‐20‐‐
y
CO2 emission reduction mandate of x%‐y% by 20‐‐ to emerge as a major growth driver for the Chinese EV market
Reduction in CO2 Emission Impact• Finding 1• Finding 2• Finding 3• Finding 4
Per Capita CO2 Emission Rise in Non Fossil Fuel UsagePer Capita CO2 Emission
6
8
tons
Z%x3 15
%
Z%x2
Rise in Non Fossil Fuel Usage
0
2
4
6
x2x1
0
5
10 x1
9ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
020‐‐20‐‐19‐‐
020‐‐e20‐‐
Led by government support the domestic players are stepping up the EV battery production in China
•Finding 1• Finding 2Fi di 3
Development of EV Battery Manufacturers Impact
• Finding 3• Finding 4• Finding 5
Company Battery Base
SubsidyDaily Production
Capacity
BAK – Production Capacity
200,000 Z% x2Ah
Company 1City 1
xa
City 2 b
Company 2 City 3 y c0
50,000
100,000
150,000
,
x1
10ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
20‐‐e20‐‐
Private consumer subsidies to emerge as a major growth driver of the electric vehicle market in China
•Finding 1
• Finding 2
Government Incentives Impact
A
B C
• Finding 3
City Subsidy
City 1 •Point 1
City 2 •Point 2City 2 •Point 2
11ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
High cost of electric vehicles vis‐à‐vis gasoline vehicles to emerge as a major challenge to the Chinese EV market
•Finding 1• Finding 2
Cost Constraints Impact
• Finding 3• Finding 4• Finding 5
Reduction in Cost of EVGasoline Price Reduction in Cost of EVGasoline Price
6
USD
Z% x2 3,000
USD/kWhCBA
2
4x1
1,000
2,000
y2y1x3
x2
x1
12ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
020‐‐e20‐‐
020‐‐e
y3y
20‐‐
In 20‐‐, China launched the x program to promote the development of EV
X Program
Point 1
Point 3
Point 2
Point 4
Point 5
Point 4
Point 6
Category Cities
A
Point 7
A
B
13ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Under the ‐‐th FYP government and enterprise investments in new energy vehicles was estimated to be USD x bn
•Point 1
Research and Development Support Policies
• Point 1• Point 2
P i t 1
A
• Point 1• Point 2
i 1
B
C• Point 1• Point 2
D • Point 1
14ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Point 1Point 1
Trends – Summary
Product Innovation
Key dTrends
Growing CompetitionInfrastructure
lGrowing Competition
Development
15ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Chinese EV manufacturers are developing new varieties of electric vehicles in partnership with foreign companies..
• Finding 1• Finding 2
Product Innovation (1/2)
Chinese EV market is characterized• Finding 2
• Finding 3is characterized
with new innovations
Automobile
Manufacturer
Company
PartnershipVehicle Model
Schedule Release Date
Expected Price
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
16ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Development of charging stations by Chinese energy companies has emerged as a major trend in the Chinese EV market
•Finding 1
• Finding 2 EV infrastructure
Development of Charging Infrastructure
• Finding 3 construction to develop the market
• Point 1• Point 2Company 1
• Point 1• Point 2Company 2
• Point 1• Point 2Company 3
17ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
• Point 1Others
Domestic Competition – Summary (1/2)
2,200
2,400
2,600
Net Income
Size of the Bubble Represents Market Capitalization in USD mn
557.8
1,400
1,600
1,800
2,000
,x4
600
800
1,000
1,200
,
114.0‐200
0
200
400 x2
‐400
‐5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000
Total Income
Company 2
Company 3
Company 1
Company 4
18ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
p y p y
Domestic Competition – Summary (2/2)
Total Income and Profit for Major Domestic Companies
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
USD
Company 1y1
x1
Company 2y2
x2
x4
Company 3y3
x3
Company 4y4
x4
BA
19ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Domestic Company – Company 1
Company Information Locations – China
Corporate AddressCity 1 , Country 1
Tel NoTel No. ‐
Fax No. ‐
Website ‐
Year of Incorporation ‐
Products and Services
Ticker Symbol ‐
Stock Exchange ‐
Key People
Products and Services
Category Products/Services
A Product 1, Product 2
N D i ti
Headquarters
B Product 1, product 2, Product 3, Product 4 ….
Name Designation
Person 1 Designation 1
Person 2 Designation 2
Person 3 Designation 3
20ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Person 4 Designation 4
i i l S h K i
Domestic Company – Company 1
Financial Snapshot Key Ratios
Profit / Loss
Total Income
8,000 600
ProfitUSD mn
Total IncomeUSD mn
x4x3
Particulars y‐o‐y
change (20‐‐‐‐)
20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability Ratios
Operating Margin ‐ ‐ ‐ ‐‐ ‐
0
2,000
4,000
6,000
0
200
400
20‐‐20‐‐20‐‐
x2
20‐‐
x1
Operating Margin
Net Margin ‐ ‐ ‐ ‐ ‐Profit Before Tax Margin ‐ ‐‐ ‐ ‐ ‐Return on Equity ‐ ‐ ‐ ‐ ‐Return on Capital Employed ‐ ‐ ‐ ‐ ‐
Return on Working Capital ‐ ‐ ‐ ‐ ‐
Financial Summary
• The company earned a net profit of USD x mn in FY 20‐‐, as compared to net profit of USD y mn in FY 20‐‐
• The company reported total Income of USD x mn in FY 20‐‐, registering an increase of y per cent over FY 20
Return on Assets ‐ ‐ ‐‐ ‐ ‐Return on Fixed Assets ‐ ‐ ‐ ‐ ‐
Cost Ratios
Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐‐
registering an increase of y per cent over FY 20‐‐
• The company reported an operating margin ofx per cent in FY 20‐‐ a decrease of y percentage points over FY 20‐‐
• The company reported debt to equity ratio of x in FY 20‐‐, an increase of y per cent over FY 20‐‐
Interest costs (% of Sales) ‐ ‐‐ ‐ ‐ ‐
Liquidity Ratios
Current Ratio ‐ ‐ ‐ ‐ ‐
Cash Ratio ‐ ‐ ‐ ‐ ‐
Leverage Ratios
Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐Financial Summary
Indicators (dd/mm/yy)
Market Capitalization (USD) ‐
Total Enterprise Value (USD) ‐
Debt to Equity RatioDebt to Capital Ratio ‐ ‐ ‐ ‐ ‐Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐
Efficiency Ratios
Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐Asset Turnover ‐ ‐ ‐ ‐ ‐Current Asset Turnover
21ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
EPS (USD) ‐
PE Ratio (Absolute) ‐
Current Asset Turnover ‐ ‐ ‐ ‐ ‐Working Capital Turnover ‐ ‐ ‐ ‐ ‐Capital Employed Turnover ‐‐ ‐ ‐ ‐ ‐
Domestic Company – Company 1
Key Business Segments Key Geographic Segments
EDCBAB CA
50%
100%
x3
y3 a3 c3b3
x2
y2 a2 c2b2
x1
y1a1 c1
b1
50%
100%
x2
y2
z2
x1
y1
z1
x4
y4
z4
x3
y3z3
Key Recent Developments
0%20‐‐20‐‐20‐‐
0%20‐‐20‐‐
x1
20‐‐20‐‐
Description News
Overview• Company is a global leader x supply and has the largest market share in a, b, c and d in the world
• Green energy products such as x, y and z has been developed by the company
New Business• Company entered into a technology partnership with Company 2 to develop a x for the Country 1 market
• The x will be marketed under a new brand jointly owned by both Company 2 and Company 1
• A common x will also be established in Country 1 for the development, design and testing purposes of x
22ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
Electric vehicle market in China is expected to reach x mn units growing with a CAGR of y% during 20‐‐‐20‐‐
Supportive government policies is expected to drive the deployment of electric vehicles in China
Opportunities in the M k t Market Size
Government i i i
Growing population leading to rise in transport demand is
Market Market SizeInitiatives
China launched the ‘Development Plan for Fuel‐efficient and
units
1,000,000 Z%x2
transport demand is expected to drive the demand for EV in China
Growing foreign
for Fuel efficient and New Energy Vehicles’ to drive the market
Ten Cities, One Th d V hi l
500,000
0x1
20‐‐e20‐‐
Challenges
Growing foreign dependency on crude oil coupled with reduction in CO2 emission to drive the EV market in China
Thousand Vehicles Program to increase the deployment of EV in China
Development of domestic EV manufacturers and supportive government
• Vehicle Performance
• Cost Constraints
• Battery Life Cycle
Government has also launched several research and development programs to develop
23ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
incentives to drive EV market growth
y y programs to develop the Chinese EV market
Thank you for the attentionThe Electric Vehicle Market – China report is a part of Netscribes’ Automobile Industry Series. For more detailed information or customized research requirements please contact:
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24ELECTRIC VEHICLES MARKET IN CHINA 2012.PPT
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