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China's Battery Operated Automobiles industry strengthens its leading position
- Aug 28, 2018 -

Consultancy firm Roland berger recently released the global electric vehicle development index 2018 jointly with aachen automotive engineering technology co., LTD.

The report showed that China continued to maintain its overall leading position, further strengthening its lead in the global electric vehicle industry.

 

Based on the three dimensions of technology, industry and market, the report makes a comprehensive comparison of the competitive situation in the field of Battery Operated Automobiles in major global automobile powers such as China, Germany, France, Italy, the United States, Japan and South Korea.

On the whole, China maintains an overall leading position;

The U.S. moved up the rankings, tied with China for first place.

Japan grew at both the industry and market levels, overtaking Germany in third place.

 

Battery Operated Automobiles sales will surge

 

The report predicted that China's growth in electric vehicle and battery production is huge and will continue to lead the industry.

In 2017, China's sales of pure electric and plug-in hybrid Battery Operated Automobiles increased by about 70 percent year-on-year, accounting for more than 2 percent of all newly registered vehicles in the same year, becoming the first country in the world to surpass that ratio.

Based on a number of laws and regulations issued over the past 18 months, China is expected to maintain its overall lead in the coming years.

 

Us vehicle manufacturers focus on the medium-priced pure Battery Operated Automobiles, and their output has significantly increased in 2017, driving the electric vehicle production to achieve a growth of about 100%, so the ranking rises to the top of the list.

France remains a technological leader, with increased production of plug-in hybrids but still focusing on small, cost-effective, pure Battery Operated Automobiles.

 

Germany's electric vehicle growth rate is the same as that of the us, but battery production is relatively deficient, lagging behind Japan and South Korea at the industry level and ranking fifth.

The growth rate of electric models in South Korea has been greatly increased, with the output growth as high as 400%. Although the market share is less than 1%, the growth rate is as high as triple digits, which gradually increases the ranking.

 

The report predicts that global sales of Battery Operated Automobiles will exceed 20 million by 2030, and the global market value of automotive batteries will reach $19 billion by 2021, with China accounting for 29 percent of the market share, followed by South Korea and Japan at 21 percent and 17 percent, respectively.

 

The battery value chain is critical

 

According to the report, significant demand for batteries in the market between 2025 and 2030 will push the battery supply industry to an unknown scale, challenge the entire supply chain, and greatly deepen the degree of dependence between the upstream and downstream companies in the value chain.

Leading battery manufacturers are expected to extend their dominance over vehicle factories, which need to take appropriate strategic measures to reduce their dependence on battery manufacturers as soon as possible.

 

The report suggests that companies can reduce risk by building autonomous battery production and by building close long-term partnerships with relevant companies in the supply chain.

Another approach is that companies can also effectively cope with supply shortages and overcome high price volatility in the value chain of automotive batteries by changing their supplier structure, reducing monopolies, incorporating more other battery manufacturers and supporting their development and promoting market competition.

 

In addition, the vehicle factory should set up an independent battery recycling and recycling business to control the waste battery pack and recycling materials for future battery production.

To ensure the sustainability of battery recycling, automakers may need to work with battery manufacturers to improve energy efficiency and reduce transportation and waste.