China NEV Taxi Market to Reach US$560.5 mn
Thus, support from the Government of China, advancements in battery technology, and tax initiatives are predicted to propel the China NEV taxi market in the next few years. In China, most NEV taxis are owned by the state and are operated and maintained by taxi companies that receive complete support from the China government. The China NEV taxi market is segmented on the basis of ownership and taxi range. Based on ownership, the China NEV taxi market is divided into company owned and individual ownership.
In 2012, the China NEV taxi market was dominated by the company owned taxis segment, which accounted for more than 3/4th of the total NEV taxi market. With commuters giving more preference to public transport, the company owned segment is predicted to develop further.
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By taxi range, the China NEV taxi market is classified into short range NEV taxis and long range NEV taxis. In 2012, short range NEV taxis accounted for the maximum share in the China NEV taxi market. Considering the many advancements in battery technology, the long range NEV segment is expected to surpass short range NEV taxis in the coming years. Some of the leading players in the China NEV taxi market are BYD Auto Co. Ltd., Anhui Jianghuai Automobile Co Ltd (JAC), Beijing Automotive Industry Holding Co. Ltd. (BAIC), Beiqi Foton Motor Co. Ltd., Changan Automobile Co. Ltd, and Dongfeng Nissan Passenger Vehicle Company.
Factors such as safety and reliability, the absence of comprehensive charging infrastructure, and high cost of vehicles and batteries are predicted to hamper the growth of the China NEV taxi market in the years to come. However, the untapped market in China is expected to create new growth opportunities in the China NEV taxi market in the next few years. Also, sustainable electric mobility and the increasing battery swapping business in China are predicted to boost the China NEV taxi market throughout the forecast period. The increasing use of range-extended electric vehicles is expected to add new growth opportunities in the China NEV taxi market.
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