BEIJING - China is the world's largest new energy vehicle market, accounting for more than half of the global NEV market share.
Looking ahead, the implementation of the Corporate Average Fuel Consumption and New Energy Vehicle credit program, or dual-credit policy as it is known, will expedite NEV penetration and guide the market onto a positive track. A recent consumer study shows that over 60 per cent of China auto consumers are willing to pay a premium for NEVs.
First, it is hard to ensure sufficient production capacity for quality products. Frequent spontaneous battery combustion have sensitised consumers to high-quality batteries. Third, NEV products are less differentiated. The reduced structural complexity of NEVs over internal combustion engine cars and the homogeneity of power system technology and product performance are challenging auto companies to develop ways of product differentiation.
The top battery players are major suppliers of various auto companies, with 70 per cent of the market share and multiple advantages in resources, technology, production and sales.