NEV (New Energy Vehicle) taxi refers to a vehicle using unconventional vehicle fuels as a source of power, or a vehicle using conventional fuels with advanced automotive propulsion systems. Taxis in China travel around 450 kilometers on daily basis. Considering their high number and long working hours, introduction of new energy vehicle taxis in China offer an opportunity to limit fuel consumption and curb emissions.
Government support in form of financial subsidies and tax incentives coupled with advancements in battery technology are the major factors driving this market. With rapid urbanization, the number of vehicles in China has grown considerably, resulting in increased air pollution, and fuel consumption. This has necessitated the central government in China to promote the use of new energy vehicles. In spite of these growth factors, absence of comprehensive charging infrastructures and high cost of batteries have collectively inhibited the growth of NEV taxis in China. However, their lies tremendous opportunity for growth of new energy vehicles in China, especially, in the field of V2G (Vehicle-to-Grid) and battery swapping technology. Moreover, use of REEVs (Range Extended Electric Vehicle) is an opportunity area, especially over the next few years till the Chinese market becomes mature enough to support mass production of BEVs (Battery Electric Vehicles).
In China, majority of NEV taxis are state-owned and are operated through taxi companies that receive support from the government. In 2012, company owned NEV taxis accounted for over 3/4th of the total NEV taxi market in China. With commuters preferring public vehicles over private taxis, the dominance by company-owned taxis is expected to continue over the forecast period from 2014 to 2020. In 2012, short range (80km – 150 km) NEV taxis accounted for the majority of market share. However, with advancements in battery technology, long range NEV taxis are expected to outnumber short-range NEV taxis over the forecast period from 2014 to 2020. Major industry participants include BYD Auto Co., Ltd., Anhui Jianghuai Automobile Co Ltd (JAC), Beijing Automotive Industry Holding Co., Ltd. (BAIC), Changan Automobile Co., Ltd, Beiqi Foton Motor Co., Ltd. and Dongfeng Nissan Passenger Vehicle Company among others.
Owing to consistent government efforts to promote NEV taxis as a means to reduce air pollution, the NEV taxi market in China is expected to grow significantly in the coming years. The report predicts the market to exhibit growth at a 36.5% CAGR during the forecast period from 2014 to 2020. In-depth analysis of NEV taxi market has been presented in the report, mentioning the key drivers, restraints, latest trends, and future opportunities in the market. To support its analysis of the growth factors for the market, the report collects crucial data related to the market, thereby presenting a comprehensive picture of the overall NEV taxi market in China.
The report uses latest research techniques to study the entire value chain of the NEV taxi market. Profiling key market players and using analytical tools such as Porter’s five forces analysis and SWOT analysis, the report provides detailed information about the vendor landscape of the NEV taxi market.
Overview of the NEV Taxi Market in China
In Chinese cities such as Beijing, Shanghai, Guangzhou, and Xi’an, PM2.5 (particles with an aerodynamic diameter less than 2.5 μm) air pollution is a major concern. The concentration levels of PM2.5 in all these cities exceed WHO air quality guidelines. The report points out that to reduce pollution across the nation as well as dependence on foreign oil imports, the Chinese government has been offering high subsidies on the purchase of new energy vehicles. National and regional price subsidies on NEV taxis, with special reference to key cities such as Beijing, Shanghai, and Guangdong have been discussed in the report. The government has also started NEV taxi fleets, which will fuel the growth of the market.
Increase in demand for long range new energy vehicles has led battery suppliers to striving to improve the technology behind it. The report provides information on some of the battery suppliers and indicates that advanced technology such as vehicle-to-grid and battery swapping technologies will create a massive opportunity for the NEV taxi market. However, the report indicates that the absence of comprehensive infrastructure along with the high cost of NEV taxis could deter the growth of the market.
The report categorizes the NEV taxi market based upon the ownership of the vehicles. A detailed analysis of individually and company-owned NEV taxis has been presented in the report. The NEV taxi market has been also segmented on the basis of range. The report predicts that the short range taxi segment is expected to grow consistently, as commuters prefer short range taxis to travel within a city. The long range taxi segment is predicted to expand thanks to advances in battery technology.
Companies mentioned in the research report:
Mentioning the competition in China NEV Taxi market, the report points out that BYD Auto Co. Ltd. is the leading player followed by Anhui Jianghuai Automobile Co Ltd (JAC). Changan Automobile Co. Ltd, Beijing Automotive Industry Holding Co. Ltd. (BAIC), Dongfeng Nissan Passenger Vehicle Company, and Beiqi Foton Motor Co. Ltd., are some of the other key competitors in the market.
Market Segmentation on the basis of Ownership:
- Company Owned
- Individually Owned
Market Segmentation on the basis of Taxi Range:
- Short Range NEV Taxis
- Long Range NEV Taxis
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments