Developing energetically the new energy vehicle is the need for China's energy security, environment protection and the great-leap-forward and sustainable development of automobile industry. At the same time, new energy vehicle will also become the new growth point of listed automobile companies. On June 11th, 2009, the opening date of 11th Chongqing International Auto Industry Fair, Changan declared the formal launch of Jiexun hybrid car, indicating that new energy vehicle will come to ordinary families gradually.
On June 2nd, Dongfeng Motor Group Co., Ltd. purchased the business and relevant assets of its independent brand passenger vehicle by RMB797 million yuan, the important reason for the purchase is Dongfeng's expansion in new energy vehicle field. Hu Xindong, Investor Relationship Department of Dongfeng Motor Group, said that new energy vehicle production will become an important factor for Dongfeng Motor Corporation Passenger Vehicle Company (DFPV) to attract investment and improve the profitability of listed company. Except for traditional gasoline vehicle production, new energy vehicle shall become an important part of DFPV.
The Plan on Adjusting and Revitalizing the Auto Industry issued on March brought forth requirements on the development of new energy vehicles. Later, all of the top four auto groups in China, namely FAW Group, Saic Group, Dongfeng and Changan, have set new development goals of new energy vehicle in succession. Their common goal is to realize industrialization of new energy vehicle around the year of 2012.
Analysts reckon that hybrid vehicle combines the advantages of pure electric vehicles and gasoline vehicles; it could well satisfy the overall requirement of low emission, low fuel consumption and high price performance. At present, domestic fuel supply is in shortage and environment protection pressure is heavy. Being conforming to the situation of China, hybrid vehicle is regarded to have a bright prospect in domestic market. Listed new energy vehicle companies, which are good at capturing business opportunities, have already had their own layouts and started the competition with each other.
The difference between new energy vehicle and ordinary vehicle lies in the power. The industrial chain of new energy vehicle is based on complete vehicle manufacturers, and is extended to upstream and downstream. Complete vehicle, recharging equipment, relevant core components and upstream resources are therefore benefited. For example, the development of new energy vehicle opens domestic market space for power battery; listed companies then invest in the field one after another. Guotai-Huarong New Chemical Materials Co., Ltd., holding subsidiary of Guotai International Group, mainly produces lithium battery electrolyte and silane coupling agent, it has taken up over 30 percent of domestic lithium battery electrolyte market. Moreover, Citic Guoan Information Industry Co., Ltd., and Ningbo Shanshan Co., Ltd. also have association with lithium battery. Besides producing lithium battery, Hunan Corun New Energy Co., Ltd. devotes to the production of foam nickel (raw material of nickel hydrogen battery) and nickel series battery; the company used funds raised to invest in the construction of nickel-hydrogen battery energy packet production line of its controlled subsidiary, Hunan Keba Automobile Power Battery Co Ltd.
According to the analysis of Shenyin & Wanguo Securities Co., Ltd., the State has recently issued lots of detailed policies supporting the development of new energy vehicle, and the enforcement and speed both goes beyond the market anticipation. There is still a wide space for follow-up policy support, which will be one of the impetuses that drives new energy vehicle to surpass the market continuously. Being the core component of new energy vehicle, it is noteworthy that the market space of power battery shall be increased from more than RMB 1 billion yuan at present to around RMB3.25 billion yuan in 2012. But is new energy vehicle able to come to ordinary consumers' lives? This will depend on a number of factors. Li Shengmao, automobile industry analyzer of China Investment Consulting, pointed out that in spite of its advantages, there is still a long way for new energy vehicle to go to realize scale commercialization, ahead there are three big bottle-necks such as technology, market and supporting facilities.
Modern advanced diesel vehicle is more environment friendly than gasoline vehicles, which has total greenhouse gas emission 45 percent higher than diesel engine; diesel engine could save around 30 percent fuel, it is also more powerful and flexible. Along with the requirement on energy saving and emission reduction get higher, both diesel engine and new energy vehicle will have a broad market space.
