Chinese start-ups ‘leapfrog’ foreign competitors in EV segment

According to the China Association of Automobile Manufacturers (CAAM), production and sales of new energy vehicles (NEVs) in the country reached 340,471 and 331,092 units respectively in 2015, increasing 3.3 times and 3.4 times year-on-year. Battery electric vehicles (BEVs) witnessed the most growth, as production and sales reached 254,633 and 247,482 units, increasing 4.2 times and 4.5 times year-on-year, while PHEV figures topped 85,838 and 83,610 units, increasing by 1.9 times and 1.8 times.

Momentum has continued into 2016 – PHEV production and sales increased by 60.1% and 68.5% in the first two months when compared to the same period in 2015, and BEV numbers increased by 2.6 times and 2.7 times. Although the numbers look encouraging, Kevin Mak, Senior Analyst for Powertrain, Body, Chassis & Safety at Strategy Analytics, warned of challenges ahead for the country’s EV segment.