According to a new research report recently published by Transparency Market Research, the China New Energy Vehicle (NEV) taxi market is expected to reach US$560.5 million at the end of the forecast period between 2014 and 2020. 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.
KEYMARKET players across the China NEV taxi market are adopting advanced taxis to meet the changing trends. Some of the leading players in the China NEV taxi market are BYD Auto Co. Ltd., Beiqi Foton Motor Co. Ltd., Dongfeng Nissan Passenger Vehicle Company, Beijing Automotive Industry Holding Co. Ltd (BAIC), Anhuji Jianghuai Aotomobile Co. Ltd., and Changan Automobile Co. Ltd. Support from the China government and advancements in the technologies of batteries has played a big role in the development of the China NEV taxi market. With urbanization, there has been growth in the number of vehicles across all regions in China. This has led to increase in air pollution. This has necessitated the China government to promote new energy vehicles.
Most of the LEADING PLAYERS in the China NEV taxi market have started focusing on new energy vehicles operated on the latest and most sophisticated batteries. The China NEV taxi market is forecast to develop rapidly in the coming few years, with many new energy vehicles added to the new products list, such as vehicle-to-grid (V2G), battery electric vehicles (BEV), and range extended electric vehicles (REEV).
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