History of electric vehicle industry in China

Last updated

China's first subway was constructed in Beijing in January 1970, [1] nearly one hundred years after its initial development in London. By 1984, 66 major subway systems existed worldwide. Urban rail transit helped ease the immense pressure caused by urban traffic congestion, while allowing commuters to travel at great speed and convenience. Tianjin was the second city to have an urban rapid transit system and Shanghai was the third, the latter opening its Metro in 1995 that incorporated both subway and light railway lines.

Contents

Electric bike and motorcycle development in the 1990s

The two principal types of two-wheeled vehicles in China: two-wheel bicycles propelled by human pedaling supplemented by electrical power from a storage battery (bicycle-style), and low-speed scooters propelled almost solely by electricity (scooter-style). The technology of both types is similar. China's two-wheeled electric vehicle industry started under the planned economy of the Maoist 1960s. However, early efforts to develop and commercialize these electric vehicles failed. A group of entrepreneurs gathered during the 1980s to revive the fledgling industry but their ambitions were thwarted by poor technology and limited government support.

By the 1990s, China witnessed the world's most spectacular growth in two-wheeled electric vehicles and annual sales of bicycles and scooters grew from fifty six thousand in 1998 to over twenty one million in 2008. [2] In 2008 only, Chinese bought 21 million electric-bikes, compared with 9.4 million autos. [3]

This growth of electric-bicycles in China was less technology-driven and more policy-driven, facilitated by favorable local regulatory practices in the form of gasoline powered motorcycle bans and loose enforcement of electric bicycle standards. [4] The alleged justifications for these bans included relieving traffic congestion, improving safety and reducing air pollution. Many Chinese cities started to ban or restrict motorcycles and scooters using a variety of measures: some cities suspended the issuance of new motorcycle licenses, others banned the entrance of motorcycles and scooters into certain downtown regions or major roads, and some capped the number of licenses and then auctioned the license plates that were available. These bans were imposed on all motorcycles, regardless of their power sources, and since electric-bikes are categorized as non-motor vehicles they were exempt from the bans. According to the motorcycle committee of the Society of Automotive Engineers of China, the use of motorcycles is now banned or restricted in over ninety major Chinese cities. [5]

In fact, the government further supported the use of electric-bicycles by including them as one of 10 key scientific-development priority projects in the country's ninth Five-Year Plan. Some insiders claim that their development had the personal endorsement of former Premier Li Peng. In addition, improved technology, low barriers to entry, decreasing purchase price, and urban living were factors that furthered the popularity of electric-bicycles as a transportation mode. First, bicycle technology - specifically for motors and batteries - improved significantly during the late 1990s and this, coupled with a vast supplier base and weak intellectual property protection, increased competition. An increase in competition drove down the price of electric-bicycles and at the same time, a rise in gasoline prices made them more competitive economically with alternatives like gasoline-powered scooters or cars. An increased influx of workers to urban areas further increased demand for an affordable, motorized, and convenient form of private mobility since traveling by bicycle or bus in congested areas or across long distances was no longer viable.

Recently, restrictions on electric-bicycles in China have been gradually spreading and there is a growing concern amongst consumers that the government may impose an outright ban. Nevertheless, since they are an important mode of electric transportation, the experience found with electric-bicycles offers important lessons for the launch of other types of electric vehicles.

Electric car development after 2000

According to the China Association of Automobile Manufacturers, China surpassed the United States to become the world's largest automobile market in 2009 with a record 13.9 million vehicles sold in the country, compared to 10.43 million cars and light trucks sold in the United States. There is a quickly growing demand for transport in China as more people can afford to buy cars. To support its commitment to encourage electric-vehicle development the government planned to provide US$15 billion to the industry. [6] Their intention, in addition to creating a world-leading industry that will produce jobs and exports, was to reduce urban pollution and decrease its dependence on oil. [7] As such, government's goal was to have five million battery-electric and plug-in hybrid electric cars on the road by 2020, while also producing one million such vehicles annually by 2020. [8]

The government established a policy framework to accelerate electric-vehicle technology development, while encouraging market transformation that will support research and development, regulate the industry and encourage consumption.

Early developments

In 2001 China started the "863 EV Project" (pure EV, hybrid EV, and fuel cell vehicles are included).[ clarification needed ][ citation needed ] The National Development and Reform Commission published the Auto Industry Development Policy in 2004. That year, sixteen Chinese state-owned companies formed an electric vehicle industry association in Beijing called CEVA. The goal of the association was to integrate technological standards and create a mechanism through which stakeholders share information in order to develop a top of the market e-vehicle. The companies were anticipated to invest a total of US$14.7 billion on the growing electric vehicles market by 2012.

In 2007 China invested over RMB2 billion (US$300 million) in new energy vehicle development.

2008

• Sales volume of Chinese new energy vehicles surges to 366 units in the first half of 2008, reaching a year-on-year increase of 107.9%. Chinese automakers provide around 500 independently developed new energy and fuel efficiency vehicles to serve Beijing Olympics. • 13 cities (Beijing, Shanghai, Chongqing, Changchun, Dalian, Hangzhou, Jinan, Wuhan, Shenzhen, Hefei, Changsha, Kunming, and Nanchang) are chosen as pilot cities for new EV usage in 2009.

2009

• The State Council approves the Auto Industry Restructuring and Revitalization Plan to invest RMB10 billion (US$1.50 billion) for new e-vehicle industrialization. • The State Council invests RMB20 billion (US$3 billion) in technique development. • To improve air quality and reduce reliance on fossil fuels, the government announces a two-year pilot program of subsidizing buyers of alternative energy cars in five cities (Shanghai, Changchun, Shenzhen, Hangzhou and Hefei). The subsidy for EV customers is RMB60,000 for battery electric vehicles (BEV) and RMB50,000 for plug-in hybrid vehicles (PHEV). [9]

2010

• An auto industry (including new energy) development plan for 2011 to 2020 was drafted to include a plan to transform the domestic auto industry. Approval has been delayed. • China plans to expand a project of encouraging the use of energy-efficient and alternative-energy vehicles in public transport to 20 cities from 13. EV). [9]

2011

• There are several major electric vehicle R&D and manufacturer company in Chinese market. The company including: Aiways, SAIC, FAW, Dongfeng, Chana, BAIC, GAC, Chery, BYD and Geely. Additionally, there are several R&D institutes has been built up such as Tsinghua University, Beijing Institute of Technology, and Tongji University. They all have their own centers focusing NEV research. [10]

2015

2018

China manufactured and sold about 1.2 million plug-in electric vehicles in 2018,[ citation needed ] which was more than three times the sales in the US.[ citation needed ] China has become the fastest and largest growing market for electric vehicles in the world.[ citation needed ] New electric cars (EV) had a market share of 4.2% of new cars sold in China for the entire year of 2018. [12] Big cities like Shenzhen and Beijing are rapidly adopting electric vehicles—for example, all of Shenzhen's 16,000 public buses are now electric, and soon all of its 22,000 taxis will be electric cars as well. [13]

Related Research Articles

<span class="mw-page-title-main">Transport in China</span> Overview of the transport in China

Transport in China has experienced major growth and expansion in recent years. Although China's transport system comprises a vast network of transport nodes across its huge territory, the nodes tend to concentrate in the more economically developed coastal areas and inland cities along major rivers. The physical state and comprehensiveness of China's transport infrastructure tend to vary widely by geography. While remote, rural areas still largely depend on non-mechanized means of transport, urban areas boast a wide variety of modern options, including a maglev system connecting the city center of Shanghai with Shanghai Pudong International Airport. Airports, roads, and railway construction will provide a massive employment boost in China over the next decade.

<span class="mw-page-title-main">Geely</span> Chinese multinational automotive manufacturing company

Zhejiang Geely Holding Group Co., Ltd (ZGH), commonly known as Geely, is a Chinese multinational automotive company headquartered in Hangzhou, Zhejiang. The company is privately held by Chinese billionaire entrepreneur Li Shufu. It was established in 1986 and entered the automotive industry in 1997 with its Geely Auto subsidiary. Geely Auto is currently the seventh largest automobile manufacturer in China, with 1.328 million sales in China in 2021. Globally, the group sold over 2.2 million cars in 2021, and over 17,926 plug-in electric vehicles in January 2022.

<span class="mw-page-title-main">History of the electric vehicle</span> Aspect of history

Practical electric vehicles appeared during the 1890s. An electric vehicle held the vehicular land speed record until around 1900. In the 20th century, the high cost, low top speed, and short-range of battery electric vehicles, compared to internal combustion engine vehicles, led to a worldwide decline in their use as private motor vehicles. Electric vehicles have continued to be used for loading and freight equipment and for public transport – especially rail vehicles.

<span class="mw-page-title-main">BYD Auto</span> Chinese automobile manufacturer

BYD Auto Co., Ltd. is the automotive subsidiary of the publicly-listed Chinese multinational manufacturer BYD Company, headquartered in Xi'an, Shaanxi Province, China. It was founded in January 2003, following BYD Company's acquisition of Qinchuan Automobile Company in 2002. The company produces passenger cars, buses, trucks, electric bicycles, forklifts, and rechargeable batteries. The current model range of automobiles includes battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), and the company also produced petrol engine vehicles up until March 2022.

The automotive industry in India is the fourth-largest by production in the world as per 2021 statistics. In 2022, India became fourth largest country in the world by valuation of automotive industry. As of 2022, India is the 3rd largest automobile market in the world, surpassing Japan and Germany in terms of sales.

<span class="mw-page-title-main">Electric motorcycles and scooters</span> Plug-in electric vehicles with two or three wheels

Electric motorcycles and scooters are plug-in electric vehicles with two or three wheels. Power is supplied by a rechargeable battery which drives one or more electric motors. Electric scooters are distinguished from motorcycles by having a step-through frame, instead of being straddled. Electric bicycles are similar vehicles, distinguished by retaining the ability to be propelled by the rider pedalling in addition to battery propulsion.

<span class="mw-page-title-main">Automotive industry in China</span> Overview of the automotive industry in China

The automotive industry in China has been the largest in the world measured by automobile unit production since 2008. Since 2009, annual production of automobiles in China accounted for more than 32% of worldwide vehicle production, exceeding both that of the European Union and that of the United States and Japan combined.

<span class="mw-page-title-main">ZAP (motor company)</span>

ZAP was an American electric vehicle company that designed, produced and marketed vehicles including automobiles, motorcycles, bicycles, scooters, personal watercraft, hovercraft, ATVs, neighborhood electric vehicles and commercial vehicles. The name stands for Zero Air Pollution. The company headquarters were located in Santa Rosa, California. The company is presumed to be defunct. The company's last filing with the California Secretary of State business entity database indicates the agent for service of process resigned on October 26, 2016.

<span class="mw-page-title-main">Battery electric vehicle</span> Type of electric vehicle

A battery electric vehicle (BEV), pure electric vehicle, only-electric vehicle, fully electric vehicle or all-electric vehicle is a type of electric vehicle (EV) that exclusively uses chemical energy stored in rechargeable battery packs, with no secondary source of propulsion. BEVs use electric motors and motor controllers instead of internal combustion engines (ICEs) for propulsion. They derive all power from battery packs and thus have no internal combustion engine, fuel cell, or fuel tank. BEVs include – but are not limited to – motorcycles, bicycles, scooters, skateboards, railcars, watercraft, forklifts, buses, trucks, and cars.

<span class="mw-page-title-main">BYD Company</span> Chinese manufacturing company

BYD Co. Ltd. is a publicly listed Chinese conglomerate manufacturing company headquartered in Shenzhen, Guangdong, China. It was founded by Wang Chuanfu in February 1995. The company has two major subsidiaries, BYD Auto and BYD Electronic. BYD Company manufactures automobiles, buses, electric bicycles, trucks, forklifts, solar panels and rechargeable batteries.

The BYD e6 is an all-electric compact crossover/compact MPV manufactured by BYD from 2009. Field testing for the first generation model began in China in May 2010 with 40 units operating as taxis in the city of Shenzhen. Sales to the general public began in Shenzhen in October 2011, over two years behind schedule of the originally planned release date of 2009. A number of e6 units were operating in fleet service as taxis in China, Indonesia, Colombia, Belgium, the U.S., the Netherlands, and the U.K. Australia will be introducing the e6 taxi fleet in 2020. Since 2010 sales in China totaled 34,862 units through December 2016. The BYD e6 ranked as the best-selling pure electric car in China in 2016 and won a golden medal for “Best Quality Product” at the Havana International Fair 2015.

<span class="mw-page-title-main">Plug-in electric vehicle</span> Type of vehicle

A plug-in electric vehicle (PEV) is any road vehicle that can utilize an external source of electricity to store electrical energy within its onboard rechargeable battery packs, to power an electric motor and help propelling the wheels. PEV is a subset of electric vehicles, and includes all-electric/battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Sales of the first series production plug-in electric vehicles began in December 2008 with the introduction of the plug-in hybrid BYD F3DM, and then with the all-electric Mitsubishi i-MiEV in July 2009, but global retail sales only gained traction after the introduction of the mass production all-electric Nissan Leaf and the plug-in hybrid Chevrolet Volt in December 2010.

<span class="mw-page-title-main">Electric vehicle industry in China</span>

The electric vehicle industry in China is the largest in the world, accounting for around 57.4% of global production of electric vehicles (EVs) and around 500,000 exports in 2021. In 2021, CAAM reported China had sold 3.34 million passenger electric vehicles, consisting 2.73 million BEVs and 0.6 million PHEV, which is around 53% share of the global market of 6.23 million "new energy" passenger vehicles – BEVs, PHEVs, and HEVs. China also dominates the plug-in electric bus and light commercial vehicle market, reaching over 500,000 buses and 247,500 electric commercial vehicles in 2019, and recording new sales of 186,000 commercial EVs in 2021.

<span class="mw-page-title-main">Denza</span> Automobile manufacturing company in China

Shenzhen BYD New Energy Co., Ltd., trading as Denza, is an automobile manufacturing company headquartered in Shenzhen, China, specialising in luxury electric cars and an equally owned joint venture between BYD and the Mercedes-Benz Group. Founded in May 2010, in late 2014 the company produced a single model with an all-electric range of up to 300 km (190 mi). The car was initially put on sale in selected Chinese cities only. In December 2021 it was announced the Daimler will reduce its share to 10% and BYD will hold 90%.

<span class="mw-page-title-main">Plug-in electric vehicles in China</span> Overview of new energy vehicles in China

The stock of new energy vehicles in China is the world's largest, with cumulative sales of 5.5 million units through December 2020. These figures include passenger cars and heavy-duty commercial vehicles such buses and sanitation trucks, and only accounts for vehicles manufactured in the country. Of these, there were 4.9 million new energy vehicles in use at the end of 2020, accounting for 1.75% of all vehicles in circulation in China.

<span class="mw-page-title-main">BYD Qin</span> Motor vehicle

The BYD Qin is a compact sedan developed by BYD Auto, available as an all-electric car, as a plug-in hybrid and as an internal combustion engine vehicle.

<span class="mw-page-title-main">Kandi Technologies</span> Chinese battery and electric vehicle manufacturer

Kandi Technologies Group, Inc. is a Chinese battery and electric vehicle manufacturer. Kandi is listed on the NASDAQ stock exchange with ticker KNDI. It was founded in 2002 in Jinhua, Zhejiang by Hu Xiaoming.

Gogoro is a Taiwanese company that developed a battery-swapping refueling platform for urban electric two-wheel scooters, mopeds and motorcycles. It also develops its own line of electric scooters and offers its own vehicle innovations to vehicle maker partners like Hero, Yamaha, Aeonmotor, PGO, eReady, and eMOVING. Gogoro also operates GoShare, a rideshare service, in Taiwan and Ishigaki Island in Japan.

<span class="mw-page-title-main">XPeng</span> Chinese car company

Guangzhou Xiaopeng Motors Technology Co Ltd, doing business as XPeng Motors, commonly known as XPeng, is a Chinese electric vehicle manufacturer. The company is headquartered in Guangzhou, Guangdong, with offices in Mountain View, California, United States and is publicly traded on the New York Stock Exchange.

References

  1. ↑ Xiao, Chenghan; Yang, Yang; Chi, Guangqing (June 2021). "Subway development and obesity: Evidence from China". Journal of Transport & Health. 21: 101065. doi:10.1016/j.jth.2021.101065. ISSN   2214-1405. S2CID   233580877.
  2. ↑ Comparison of common urban travel modes in China (Weinert et al. 2006)
  3. ↑ J. Weinert, C. Ma, C. Cherry, The transition to electric bikes in China: history and key reasons for rapid growth, Transportation 34 (3) (2007) 301–318/
  4. ↑ Saturday (3 February 2007). "Shanghai Blogs - Summary of Important Factors for E-bike Growth in China and Its Impact on Travel Behavior (February 2, 2007)". Jonathanweinert.com. Archived from the original on 22 March 2012. Retrieved 2011-05-02.
  5. ↑ 武汉处罚电动自行车 (in Chinese). People's Daily Online. 11 October 2011. Archived from the original on 9 February 2011. Retrieved 2011-05-02.
  6. ↑ "Freidman OpEd: China's 'Moon Shot' Versus America's" http://evworld.com/news.cfm?newsid=24054 Archived 3 November 2010 at the Wayback Machine "
  7. ↑ Bradsher, Keith (2009-04-02). "China Vies to Be World's Leader in Electric Cars". The New York Times. Archived from the original on 1 March 2017. Retrieved 24 February 2017.
  8. ↑ "China electric vehicles to hit 1 million by 2020: report". Reuters. 2010-10-16. Archived from the original on 27 November 2020. Retrieved 2011-05-02.
  9. 1 2 Liza, Lin. "China to Subsidize Alternative Energy Car Purchases", Bloomberg , China, 6 January 2010.
  10. ↑ Wei Wu, Wei; Liu, Yingqi; Kokko, Ari (30 March 2012). "NEV technology in China". Chinese Management Studies. 6 (1): 78–91. doi:10.1108/17506141211213762.
  11. ↑ Wang, Yunshi; Sperling, Daniel; Tal, Gil; Fang, Haifeng (2017-03-01). "China's electric car surge". Energy Policy. 102: 486–490. doi:10.1016/j.enpol.2016.12.034. ISSN   0301-4215. Archived from the original on 28 December 2021. Retrieved 25 November 2021.
  12. ↑ "8% Plug-In Electric Vehicle Market Share In China!". CleanTechnica. 2019-02-04. Archived from the original on 9 July 2019. Retrieved 2019-11-12.
  13. ↑ Keegan, Matthew (2018-12-12). "Shenzhen's silent revolution: world's first fully electric bus fleet quietens Chinese megacity". The Guardian. ISSN   0261-3077. Archived from the original on 9 November 2019. Retrieved 2019-11-12.


This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.