Media Contact

Mr. Sean Lin

Tel: +886-2-8978-6488 ext.667

Ms. Pinchun Chou

Tel: +886-2-8978-6488 ext.669

RSS Subscription
  DRAM  
  NAND Flash  
  Storage  
  Display  
  Consumer Electronics  
  LED  
  Green Energy  
  Internet of Things  
  Semiconductors  
  Automotive Electronics  
  Innovative Technological Applications  
       

Press Release


Returning Demand Expected to Increase xEV Sales in China to 550,000 for 2016, Says TrendForce

Monday , 11 / 07 / 2016 [ Analysts: Eric Chang ]

China’s xEV (plug-in) vehicle market through 2016 has been roiled by news of government fining auto makers for falsely claiming subsidies. Though the scandal has reduced some of the expansionary momentum in the Chinese plug-in vehicle market, sales are expected to grow significantly in this year’s fourth quarter because buyers are spurred by the further reduction of purchase subsidies next year.

According to the global market research firm TrendForce, xEV sales in China from January to September of 2016 came to nearly 350,000 units, surpassing last year’s annual total. Furthermore, xEV sales in China for the entire 2016 are estimated to reach 550,000 units, contributing significantly to the annual global sales of nearly one million units.

“For both 2014 and 2015, xEV sales in China grew by more 300% annually,” said Eric Chang, TrendForce automotive electronics analyst. “China has become the largest xEV market in the world, not only surpassing Japan and the U.S but also accounting for over half of the global sales in 2015. The xEV industry will continue to depend on China as the engine of sales growth.”

While the outlook of China’s market remains positive, Chang noted that growth are being dampened by the government’s policy of gradually reducing purchasing subsidies on a yearly basis from 2016 onward. Furthermore, the government at the start of this year launched a crackdown on subsidy frauds committed by the supposed domestic xEV manufacturers.

“Sales of passenger vehicles in China’s xEV market will continue to expand rapidly despite future subsidy cuts,” said Chang. “On the other hand, sales commercial vehicles are going to be impacted by the subsidy fraud cases as the government in response has raised certification requirement for domestic xEV manufacturers. Thus, sales of buses and other commercial transport vehicles in China’s xEV market may fall in 2017.”

With the lowering of the subsidy next year, TrendForce expects xEV demand in China will concentrate in the fourth quarter. Moreover, the country’s total xEV sales for 2016 are expected to arrive around 550,000 units mainly due to the rapid growth of the domestic passenger xEV market.

The U.S. and Japan are also witnessing steady growth in xEV sales during 2016. Following the slump of 2015, these two regional markets managed to make a sharp turnaround. Annual xEV sales in the U.S. are expected to grow to nearly 150,000 units in 2016 due to the hot demand for Tesla’s Model S and Model X. With China leading the market, TrendForce estimates that sales of xEVs worldwide for 2016 will exceed 950,000 units.

To keep updated with our press releases, please follow our social media pages. facebookGoogle+TwitterLinkin

China xEVs Plug-in car Automotive electronics green energy

TrendForce Press Center Copyright Notice
TrendForce grants you a limited license to use and/or republish any of the press releases on TrendForce Press Center for any legitimate media purpose (including copy and redistribute the content of press releases in any format and via any outlets), provided that you follow these license terms:

1. Reference TrendForce as the source on your works, or include a hyperlink to the original release on the TrendForce site.
2. Do not modify any press release wording.
3. Do not modify or add hyperlinks, including but not limited to adlinks, within the press release.

If your citations of press releases contain mistakes and/or have information missing, TrendForce may, in its sole discretion, direct you to remove the content distributed via TrendForce from your site at any time and for any reason, and you agree to comply with such request.