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Chen Quanshi: EV industry to face the first recession next year

Source: | Date: Sept. 6

  • On Aug. 21, the 18th China Annual Academic Conference on Electric Vehicles (EVs) was held at Wuhan Dongfeng Motor Co., Ltd. At the conference, Prof. Chen Quanshi with the Department of Automotive Engineering, Tsinghua University, delivered an in-depth report on national policies for new-energy vehicles (NEVs), explosive growth in the NEV industry and problems and challenges facing the development of NEVs. Chen believes that the EV industry is likely to move into a period of recession in 2016.

  • Official data shows that China's NEV output reached 78,500 units in the first half of 2015, an increase of 300% over a year earlier, and new-energy passenger car sales were 56,700 units, accounting for 72% of the country's total NEV sales in the first half and 1.34% of the total passenger car sales. Chen predicts that thanks to the implementation of favorable policies, China's NEV output is expected to hit 150,000-200,000 units this year.

  • Chen points out that despite fast growth in NEV output, many technical problems remain unsettled in terms of vehicle integration, lightweight technology, battery pack, electric motor, and electric control. In addition, the performance and safety of NEVs need to be improved. These factors will affect the popularization of NEVs in China and even result in a growth recession.

  • NEV producers are being urged to strengthen technological innovation to improve the overall performance and durability of NEVs to promote the healthy development of the NEV industry.