Alternate reality to "markets that matter" glossies here.
Typically there is no analysis thru the glossy headlines of China's latest "modern miracle", the rapid growth production/sales EV, despite reports their charging network is operating at just 15% capacity.
"In 2017, China’s new energy vehicle production reached 794,000 units and sales volume reached 777,000 units. The output accounted for 2.7% of the country’s total automobile production for the year and ranked first in the world for three consecutive years."
"Apart from pride, from the increase in "quantity", the author has a "quality" worry."
"Judging from the statistics for 2017, the growth rate of new energy vehicles is very large, but the best-selling models turned out to be A00-grade pure electric vehicles known as the “old generation scooter”. In 2017, among the models of new energy vehicles sold in the market, A00-class models sold more than 300,000 vehicles, which accounted for 54.5% of the entire new energy automotive market. Such low-end scooter even surpassed the growth rate of 173%, ranking first in the growth of models at all levels, indicating the strong momentum and market of such models."
http://www.ndfeb1688.com/news/show-28199.html
So 54.5% of the Dragon's EV sales last year were ultra low "subsidy magnets", "A00-class mini electric vehicles", "low technology cost, severe shortage of battery life, small space, and poor comfort", hence we now understand why the Dragon first said they were going to withdraw subsidies, then decided to restructure them to vehicle range, an attempt to direct them to higher quality vehicles. Will be interesting to observe total volumes going forward, particularly based on some of the consumer surveys which graduate responses to various levels of subsidy/incentives.
Lombard St to a China orange the average 48VMH will shortly contain far more NdFeB than the Dragon's "A00-class mini electric vehicles" ever will.
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