Automotive Market in China in 2015

1. China to encourage Internet companies to build electric cars
China will encourage Internet companies such as Leshi Corp. to develop electric vehicles as part of an effort to create a new manufacturing model for the auto industry. China is promoting the use of electric vehicles to reduce the reliance on imported oil and to cut tailpipe pollution. It is experimenting with allowing companies outside the manufacturing industries to develop EVs as a way to inject innovation and spur competition.
“We’ll encourage them because they can totally outsource their production,” China’s Minister of Industry and Information Technology Mr. Miao Wei said last week in Beijing as he left a National People’s Congress session at the Great Hall of the People. “To cite one example, Foxconn, they don’t have their own mobile phone but they produce Apple’s mobile phones.” The initiative is taking place at a time when Silicon Valley companies from Apple Inc. to Uber Technologies Inc. are getting into transportation from cars to drones to spaceships and pioneering new business models.
Miao’s comments are the clearest indication to date that technology companies will be allowed to develop electric vehicles. His ministry jointly regulates the auto industry with the National Development and Reform Commission.

2. Changan to invest US$2.87 billion in EVs and Plug-in. Chongqing Changan Automobile Co. unveiled ambitious plans to market electric cars and plug-in hybrid vehicles. According to the plan, Changan expects to sell a cumulative 400,000 EVs and plug-in hybrids by 2020 and increase cumulative sales to 2 million of the vehicles by 2025. Changan plans to invest RMB18 billion (US$ 2.87 billion) within the next 10 years, mainly to develop EVs, while also develop plug-in, release 34 new models by 2025.


3. Tianneng to double battery production in China for EVs Tianneng Power International, the biggest supplier of batteries for low-speed electric vehicles in China, is expanding production capacity this year to meet surging demand. The battery maker will produce up to 1 million lithium batteries a day by year end — double its current capacity, Chairman Zhang Tianren said in an interview last week in Beijing, where he attended the National People’s Congress.  


4. Geely to sell it’s transmission business Chinese automaker Geely has released a statement indicating plans to sell its transmission assets, including 5-speed and 6-speed manual transmissions production lines of the Group, together with the related testing equipment, tools, technologies and know-how and inventories relating thereto to Zhejiang Wanliyang Transmission Co for CNY300 million (USD47.9 million). The deal will involve Wanliyang supplying transmissions to Geely vehicles up to 31 December 2018. Geely disposed of all of its automatic transmission production facilities during the year ended 31 December 2014.


5. GM February sales in China grow 1.3 percent Auto sales of General Motors Co. (GM) and its joint ventures in China reached record 261,072 units in February, up 1.3 percent year on year. Buick brand sales fell 0.1 percent on an annual to 59,088 units in February; Chevrolet sales climbed 2.5 percent to 47,521 units; Cadillac sales hit a record of 5,959, up 36.1 percent; and Baojun sales rose 391.6 percent to 27,542 units, the Detroit-based automaker said in a statement. In February, Shanghai GM’s domestic sales were up 2.4 percent year on year to 112,568 units and SAIC-GM-Wuling’s sales were up 3. 9 percent, it said. Wuling brand sales dropped 11.9 percent to 120,685 units, and GM attributed it to the shift of the market demand from mini- commercial vehicles to passenger vehicles in China, according to the statement.

6. Ford’s China sales rise 15% in first 2 months
Ford Motor Co. and its joint ventures sold 191,983 vehicles in the first two months of this year, an increase of 15 percent from a year earlier. The growth was propelled by Changan Ford Automobile Co., Ford’s passenger vehicle partnership. Through February this year, Changan Ford delivered 144,069 vehicles, up 17 percent year on year.

7. Geely’s rebound gains momentum with 55% surge in global deliveries in February
Geely Automobile Holdings’ rebound continued in February as global deliveries surged 55 percent year on year to 33,138 vehicles. For the first two months, the company’s worldwide sales jumped 67 percent from a year earlier to 92,022 vehicles. Geely’s sales got a lift from robust demand in Geely’s home market. In the first two months, sales in China rose 77 percent to 85,177 vehicles.

8. Great Wall to reintroduce flagship Haval H8 SUV
Great Wall Motor Co. plans to resume sales of its most expensive SUV in April, after twice halting sales last year to fix quality issues. China’s biggest SUV maker will start test drives of its 200,000 yuan ($32,000) Haval H8 model this month. The company aims to restart sales around the time of the Shanghai auto show, the source said.


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