Electric Vehicles Market China

January 2015

Executive Summary
Market

Drivers &
Challenges

Government
Initiatives

Trends

China will become one of the largest market for electric vehicles in the coming future
Chinese government has set a target of selling x lakh electric vehicles by 20-- and y mn
electric vehicles by 20- Currently, Plug in Hybrid Vehicles account for 41% and pure electric vehicles account for 59%

Drivers:

Challenges:

Rising Population and Transport Demand

Automotive Industry Growth
Increased Government Participation
Foreign Dependence for Crude Oil
Development of EV Battery Charging Infrastructure
Reduction in CO2 Emission

Low Vehicle Performance

Battery Life Cycle
Cost Constraints

Fuel-efficient and New Energy Vehicles

Program
10 Cities 1,000 Vehicles Program
Renewed And Enhanced Subsidies:
Energy Efficient Vehicles
Infrastructure Development
Growing Foreign Participation
New Product Launches

State-owned Enterprise Electrical

Vehicle Industry Alliance National
Renewable Energy Law
R&D Support Policies
Local Subsidies: Beijing and Shanghai

Major Players

Competition

Company A

Company B

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Company C

Company D

Macro-Economic Indicators
Introduction
Market Overview
Global
China

Direct Investment Scenario

Drivers & Challenges
Trends
Government Initiatives
Competitive Landscape
Mergers & Acquisitions
Strategic Recommendation
Appendix
ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

SAMPLE

Economic Indicators (x/x)

Lending Rate: Annual

2010

%
Per Annum

a5
a4
USD bn

Trade Balance: Annual

x1

D
A

a3
a2
a1

2011

x2

0
2010
2011
N.B.: 2009
2012-13 encompasses
figure for Apr Nov
2012

2012

FDI: Net Inflow

2012

x3
USD bn
C

2013

a2

x4
B

a3

a4

a1

A
Commercial Bank Rates: Key Lending Rates as Prescribed by RBI (All
Commercial Banks including SBI) - Minimum Rate General

2009

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

2010

2011

2012

There are four types of battery mainly used in electric

vehicle (EV) industry

SAMPLE

Performance Indices: EV Batteries and Applications to EVs

Battery Type

Lithium iron phosphate

Lead acid battery

NiMH battery

Lithium-ion battery

Specific Type

Among these four battery types, the lithium iron phosphate battery named ET-Power is of good dynamic performance and safety function
ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Nissan Leaf is the market leader with twice as many sales as

the Chevy Volt
Top 21 Electrified Vehicles: Sales Wise (2013)
0

Nissan Leaf

Global Electric Vehicle Market Overview

E
a1

Chevy Volt

SAMPLE

Unit

a2

Toyota Prius PHEV

a3

Tesla Model S*

a4

Mitsubishi Outlander PHEV

a5

Renault Zoe

a6

Volvo V60 PHEV

a7

Ford C-Max Energi

a8

Ford Fusion Energi

a9

Renault Kangoo ZE

a10

Chery QQ3 EV

a11

Mitsubishi i

a12

Smart Fortwo ED

a13

Opel Ampera

a14

Renault Twizy

a15

Jac J3 EV*

a16

Ford Focus Electric

a17

BYD e6

a18

VW e-Up!

a19

Mitsubishi Minicab MiEV

a20

BMW i3

a21

x
A

XX
XX
XX
XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Led by government support, EV sales in China is expected to

reach xx mn units by 20--

SAMPLE

Electric vehicles Overview

Market Size & Growth*

China will become one of the largest market for

electric vehicles in the coming five years as
government promotes clean energy cars and builds
the necessary infrastructure for the same
The Government of China has set a target of selling x
lakh electric vehicles by 20-- and y mn electric
vehicles by 20- Government is actively promoting the use of electric
vehicles to reduce pollution in smog-choked cities as
well as reduce the oil imports at the same time

Chinese government is providing subsidies up to USD

xx on electric as well as hybrid electric vehicles
The government has also committed to spend
around USD x bn over the next decade for the
development of this segment

Currently, Plug in Hybrid Vehicles account for x% and

pure electric vehicles account for y%
In the coming future, Plug in Hybrid Cars will account
for approximately x% of private new energy vehicles

units
a3

E
X

D
C
B
A

a1

2013

a2
2015e

2020e

Planned Target (2020e)

Vehicle Type

EV Target (units)

New Energy Bus

XX

Energy Taxi

XX

Energy Delivery
Vehicles

XX
Note: Market Size and Growth in terms of sales

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

In 2013, EV market accounts for only x% of the overall domestic

automobile market in terms of sales and production

SAMPLE

Market Snapshot
EV Production Market Size & Growth

EV Sales Market Size & Growth

units

units

XX

C
B
A
0

a2
a1

a2

y3

2013

2014

y3

y2

2012

2013

2014

Plug in Hybrid Elctric Vehicles

EV Production Status: 2013

0

x3

x2

x1
y1

Pure Electric Vehicles

a3

a1

y2

2012

XX

x3

x2

x1
y1

C
a3

EV Sales Status: 2013

C

units
2012

2013

2012

units

2013

Other Vehicles

Electric Vehicles

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

SAMPLE

Direct Investments BYD Company Ltd.

CD Investments Geography-wise

Total Investments Sector-wise

x4
x3

b1
x1
x1

x2
x3

a1

x4

x2

a1

CD Investments Segment-wise

b1

Investment Snapshot
AA

0%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

AA
AA

AA
AA
AA
x

AA

AA
Note: CD stands for Consumer Discretionary
ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Improved EV charging facilities in the country will act as a

major growth driver

SAMPLE

Development of EV Battery Charging Infrastructure

Impact

Around x major cities across China are planning several expansion plans to increase the total
number of electric vehicle charging stations to aa by 2015
The country is also planning to increase the number of charging poles from xx in Oct 2013 to yy in 2015

As of October 2013, there were around aa charging poles in Beijing and there were around bb
charging poles in Shanghai at the end of 2012
Most of the charging poles were installed at gas stations, car dealerships, parking lots and universities
By 2015, Beijing is planning to build five charging stations and aa charging poles and Shanghai is planning to
build bb new charging poles and one hydrogen station

EV Charging Stations: Growth

EV Charging Poles: Growth

No. of station
No. of Poles

D
x2
C

D
C

B
A

x2

x1

x1

0
Oct-13

2015e
ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Oct-13

2015e
10

High cost of electric vehicles vis--vis gasoline vehicles to

emerge as a major challenge to the Chinese EV market

SAMPLE

Cost Constraints

Impact

Cost of electric vehicles is higher than the traditional gasoline counterparts, creating a major
challenge for the growth of EV in China
Lithium cell accounts for about half of an EV total cost, which makes EV more expensive than
traditional gasoline driven cars
Gasoline price is expected to reach USD aa/ Gallon growing with a CAGR of x% during 20-----

However Electric vehicles and PHEVs are not expected to be competitive with gasoline driven
vehicles without the aid of government subsidies
High cost of ownership of electric vehicles is expected to emerge as one of the major challenges
to the growth of the EV market in China

Gasoline Price

Reduction in Cost of EV
x1

USD/Gallon
x

6
4

x2

x3

3,000
2,000

x1

x1
x2

1,000
x3

2010

x2

USD/kWh

2030e
ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

2010

x1
x3

x2

2030e
11

Foreign players are launching many new models in the domestic

market in partnership with local players
New Product Launches
Company A

XX
XX

Company B

XX
XX

Company C

XX
XX

Company D

XX
XX

Company E

XX
XX

SAMPLE

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

12

In 2009, China launched the 10 cities 1,000 vehicles

program to promote the development of EV

SAMPLE

10 Cities 1,000 Vehicles Program

XX
XX
XX
XX

Changchun
Hohhot
Shenyang
Tanshan
Dalian
Beijing
Tianjin
Jinan
Zhengzhou
Suzhou Nontong
Chengdu Xiangfan
Shanghai
Hefei
Hangzhou
Chongqing Wuhan
Nanchang
Chang-Zhu-Tan Xiamen
Kunming Guangzhou
Shenzhen

XX
XX
XX

Haikou
Note: Chang-Zhu-Tan refers to Changsha, Zhuzhou and Xiangtan economic zone

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

13

Chinese government is offering various fiscal incentives to

complement mandatory vehicle efficiency standards

SAMPLE

Renewed And Enhanced Subsidies: Energy Efficient Vehicles

MIT, MOF, NDRC and Ministry of Science and Technology has renewed the energy saving car policy
The new renewed policy is effective from October 1, 2013 and valid till 2015
Central Government Subsidies for various types of vehicles (2013-15)
Types and Technology

Criteria
X

2013

2014

2015

Types and Technology

Criteria
X

2013-15
X

Note: Conversion Rate: 1 RMB: 0.16295 USD

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

14

Porters Five Forces Analysis

SAMPLE
Impact
X

Threat of New Entrants

XX

Impact
X

Bargaining Power of Suppliers

XX

Impact
X

Competitive Rivalry

Impact
X

Bargaining Power of Buyers

XX

XX

Impact
X
Threat of Substitutes
XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

15

Competitive Benchmarking (x/x)

Public Trading Comparables (FY 2013)

SAMPLE

Company A

Company B

Company C

Market Capitalization (USD mn)

Share Price (USD)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

Note: Major 3 Public companies based on the Market Capitalization; Market Capitalization, Share Price is as of 27/09/2014 and PE ratio is as of 29/09/2014
ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

16

Competitive Benchmarking (x/x)

SAMPLE

Key Ratios of Major 3 Companies Operational Basis (FY 2013) (x/x)

Operating Margin

Net Margin

Gross Margin

30

c2

20

a3

10

a1

a2

b3
b1

c3

b2
c1

-10
Company A

Company B

Company C

XX
XX
XX

XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

17

SAMPLE

Public: Domestic Company Company A

Company Information
Corporate Address

Locations China

XX

Tel No.

XX

Fax No.

XX

Website

XX

Year of Incorporation

XX

Ticker Symbol

XX

Stock Exchange

XX
ShenZhen

Products and Services

Category

Headquarters
Products/Services

Key People
Automobile

Name

XX

Designation

XX

XX

XX

XX

XX

XX

XX

XX

Note: List of products is not exhaustive

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

18

SAMPLE

Public: Domestic Company Company A

Financial Snapshot
Total Income
USD mn
10,000
5,000

Total Income

382.7
7,176.7

Key Ratios
Net Profit/Loss

Profit
USD mn
400

219.6

7,485.1

7,228.5
13.1

2010

2011

Financial Summary

2012

8,355.2
91.4

2013

The company reported total Income of USD 8,355.2 mn in FY 2013,

registering an increase of 15.6 % over FY 2012
The company earned an operating margin of 2.3 % in FY 2013 an
increase of 1.4 percentage points over FY 2012
The company reported debt to equity ratio of 1 in FY 2013, an
increase of 29.4 % over FY 2012

Financial Summary
Market Capitalization (USD)
Total Enterprise Value (USD)
EPS (USD)
PE Ratio (Absolute)

y-o-y change
(2013-12)

2013

2012

2011

2010

1.37

2.28%

0.91%

3.32%

5.85%

0.91

1.09%

0.18%

2.93%

5.33%

1.00

1.65%

0.65%

3.66%

6.64%

1.89

2.23%

0.34%

5.77%

11.93%

2.07

3.32%

1.25%

4.86%

10.98%

-5.67

-8.61%

-2.94%

0.89

1.48%

0.58%

2.34%

5.14%

2.16

3.37%

1.22%

5.10%

11.12%

-1.54

86.91%

88.45%

85.17%

82.30%

0.17

8.21%

8.04%

8.48%

8.77%

0.25

1.80%

1.54%

1.11%

0.22%

10.35%

0.69

0.63

0.66

0.65

7.89%

0.17

0.16

0.17

0.11

29.44%

1.00

0.77

0.77

0.66

14.73%

0.50

0.44

0.43

0.40

115.79%

1.29

0.60

3.06

26.56

10.54%

1.46

1.32

1.51

1.88
0.87

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

-13.23% -27.34%

Cost Ratios

The company earned a net profit of USD 91.4 mn in FY 2013, as

compared to a net profit of USD 13.1 mn in FY 2012

Indicators

200

Particulars

Value (29/10/2014)
17,498.3 mn
21,534.9 mn
0.04
182.89

Operating costs (% of Sales)

Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover

0.63%

0.64

0.63

0.69

-12.72%

1.66

1.90

2.03

2.52

16.54%

-3.72

-3.19

-3.91

-4.61

-3.45%

1.00

1.04

1.09

1.33

Improved

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Decline

19

SAMPLE

Public: Domestic Company Company A

Key Business Segments
RB and PB

Key Geographic Segments

Automobiles and Related Products

China

India

Europe

US

Others

MHC and AS
100%

10%
44%

50%

11%
42%

14%
38%

12%
39%

100%
50%

46%

46%

48%

49%

0%

0%

2010

2011

2012

2013

87%

10% 3%
2010

85%

85%

1%
3%
3%
4%
10%
2%
1%
7%

2011

2012

86%

2% 2% 4%
6%
2013

Business Highlights
Description

News

Overview

XX

Latest Developments

XX

Partnership

XX

Note: RB - Rechargeable Battery , PB - Photovoltaic Business, MHC - Mobile Handset Component, AS - Assembly Service, China includes Hong Kong, Macau and Taiwan)
ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

20

SAMPLE

Public: Domestic Company Company A

XX

XX

Strength

Weakness

Opportunity

Threat

XX

XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

21

SAMPLE

Private: Domestic Company Company B

Company Information
Corporate Address

Locations China

XX

Tel No.

XX

Fax No.

XX

Website

XX

Year of Incorporation

XX

Changchun

Products and Services

Category

Headquarters

Products/Services

Key People
Name

Automobiles

XX

Designation

XX

XX

XX

XX

XX

XX

XX

XX

Note: List of products is not exhaustive

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

22

SAMPLE

Private: Domestic Company Company B

Business Highlights
Description

News

Overview

XX

Joint venture

XX

Product Launch

XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

23

SAMPLE

Private: Domestic Company Company B

XX

XX

Strength

Weakness

Opportunity

Threat

XX

XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

24

SAMPLE

Mergers & Acquisitions (M&A)/Private Placement (x/x)

Announced
Date

Closed Date

Transaction
Type

Target

Buyer/Investors

Sellers

Deal Size
(USD mn)

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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Thank you for the attention

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ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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