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Aug. 15 Newsletter

Industry Trends

NEV industry should refrain from over-reliance on financial aid

  • The government recently started soliciting public opinions of the draft law on the vehicle purchase tax. According to the draft law, whether to continue exempting new energy vehicles from the purchase tax is at the discretion of the State Council.

  • Several government departments including the Ministry of Finance jointly issued the public notice on exempting NEVs from the vehicle purchase tax in 2014. According to the notice, the purchase tax exemption policy will expire on Dec. 31 2017.

  • As the expiration of the policy and the decline of the NEV subsidy will undermine the development of the NEV market, relevant institutions and car companies have called on the government to extend the tax exemption policy.

  • Some industry insiders opposed the extension of the policy, saying that the over-reliance on direct or indirect subsidies will put huge pressure on fiscal funds and slow down the market-oriented development of the NEV segment. (CNEV , Aug. 15)

MIIT: Jan.-July NEV sales reach 251,000 units 

  • According to figures from the Ministry of Industry and Information Technology (MIIT), China's auto output and sales reached 2.059 million units and 1.971 million units in July, a rise of 4.8% and 6.2% over a year earlier but a drop of 5.0% and 9.2% over the previous month. 

  • In the month, China's new energy vehicle (NEV) output and sales were up 52.6% and 55.2% year-on-year to 59,000 units and 56,000 units, of which pure electric vehicle output and sales were up 69.6% and 70.2% to 46,000 units and 45,000 units, while plug-in hybrid vehicle output and sales were both 12,000 units, up 10.0% and 16.3%. 

  • China's Jan.-July NEV output and sales grew 26.2% and 21.5% year-on-year to 272,000 units and 251,000 units, of which pure electric vehicle output and sales were up 37.8% and 33.6% to 223,000 units and 204,000 units, while plug-in hybrid vehicle output and sales were down 8.8% and 12.8% to 49,000 units and 47,000 units. (Beijing Youth Daily, Aug. 15) 

CAAM: market share of Chinese auto brands drops for five consecutive months

  • The latest data compiled by the China Association of Automobile Manufacturers (CAAM) shows that auto production and sales volume both decreased in July compared to June. From Jan.-July, SUVs were the only type of passenger vehicles to maintain growth in production and sales over the same period last year.

  • The new energy passenger car market posted continual sales growth for the first seven months of this year, with sales hitting a yearly high in July.

  • Since Mar., the market share of Chinese auto brands declined month by month. Last month, Chinese passenger vehicle brands sold a total of 679,200 units, down 10.2% sequentially and up 7.2% year-on-year. Their sales made up 40.47% of total passenger-car sales, suggesting that the market share fell 0.82 percentage points from the previous month. (Qcyyj123, Aug. 14)

Latest Car Models

SAIC Volkswagen to produce 1.4T hybrid powertrain with annual production of nearly 110,000 units

  • Shanghai Volkswagen Powertrain Co., Ltd. will spend RMB 367 million renovating its existing workshop for the EA211 1.4TST PHEV powertrain, which has entered the stage of environmental impact review.

  • With a maximum annual production capacity of 109,500 units, the powertrain is expected to be installed in the plug-in hybrid versions of the Tiguan L and Kodiaq.

  • To be built based on the MQB platform, the Tiguan L PHEV is expected to be introduced in 2018. (Internet Info Agency, Aug. 15)

Spied: Lynk & Co 01 hybrid expected to hit market in H1 2018

  • The Internet Info Agency recently obtained spy photos of the Lynk & Co 01's hybrid version, which is expected to go on sale in the first half of 2018.

  • Adopting Volvo's plug-in hybrid system that is comprised of a 1.5T engine and an electric motor, the hybrid version features an almost the same appearance as its fuel-powered sibling.

  • Underpinning it will be the CMA architecture jointly developed by Geely and Volvo. (Internet Info Agency, Aug. 15)