Steady Government Support to Remain Crucial for Development of China NEV Taxi Market, says TMR

The China new energy vehicle (NEV) taxi market is largely consolidated with a handful of companies that dominate this market. Transparency Market Research (TMR) reports that in 2013, the two leading companies, BYD Motor Company and Anhui Jianghuai Automobile Co. Ltd., collectively held more than 45% of the NEV taxi market in China. Other leading players in this market are Beijing Automotive Industry Holding Co. Ltd., FAW Group, and Dongfeng Nissan Passenger Vehicle Company.

Research and development activities are the primary focus of top companies in the China NEV taxi market in the bid to offer advanced NEVs to the government and taxi companies. An excellent example is BYD Motor Company. The company has undertaken extensive research in battery technology with the objective to lower production cost of new energy vehicles and steal a march over competitors in the electric cars segment.

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Government support in form of financial subsidies and tax incentives coupled with advancements in battery technology are the major factors driving this market. With rapid urbanization, the number of vehicles in China has grown considerably, resulting in increased air pollution, and fuel consumption. This has necessitated the central government in China to promote the use of new energy vehicles. In spite of these growth factors, absence of comprehensive charging infrastructures and high cost of batteries have collectively inhibited the growth of NEV taxis in China. However, their lies tremendous opportunity for growth of new energy vehicles in China, especially, in the field of V2G (Vehicle-to-Grid) and battery swapping technology. Moreover, use of REEVs (Range Extended Electric Vehicle) is an opportunity area, especially over the next few years till the Chinese market becomes mature enough to support mass production of BEVs (Battery Electric Vehicles).

In China, majority of NEV taxis are state-owned and are operated through taxi companies that receive support from the government. In 2012, company owned NEV taxis accounted for over 3/4th of the total NEV taxi market in China. With commuters preferring public vehicles over private taxis, the dominance by company-owned taxis is expected to continue over the forecast period from 2014 to 2020. In 2012, short range (80km – 150 km) NEV taxis accounted for the majority of market share. However, with advancements in battery technology, long range NEV taxis are expected to outnumber short-range NEV taxis over the forecast period from 2014 to 2020. Major industry participants include BYD Auto Co., Ltd., Anhui Jianghuai Automobile Co Ltd (JAC), Beijing Automotive Industry Holding Co., Ltd. (BAIC), Changan Automobile Co., Ltd, Beiqi Foton Motor Co., Ltd. and Dongfeng Nissan Passenger Vehicle Company among others.

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This release was published on openPR.