User:Mjmakepeace/Electric vehicle industry in China (Lp99A15448733)

Low-speed electric vehicles:
Low-speed electric vehicles belong to one of the categories in electric vehicles, in which the vehicle operates fully on electricity with a top speed of 25 miles per hour and is legal to be driven on the streets. The growing industry of electric vehicles in China also received contribution from the increasing popularity of low-speed electric vehicles. By definition, there are many different types of low-speed electric vehicles, such as electric bikes, electric scooters, golf carts, and even electric tricycles.

-       Electric Bicycles:
Electric bicycles are not a new concept in China. Although the number of electric bicycle owners is increasing, further growth in this type of vehicle can be limited due to competitors and changing policies. Electric bicycles are less competitive to the newer electric four-wheeled low-speed vehicles now especially because the latter has more convenience and higher power, which took away some of electric bicycles’ market share in the recent years. Moreover, a new national standard on electric bicycles was implemented in 2019, which includes regulations in speed, battery size, as well as protection system. The overall speed of the electric bike is not allowed to go pass 25 kilometers per hour, and the total weight (with battery in) is not allowed to go over 55 kilograms. Moreover, the motor power of the battery is not allowed to be more than 400 watts, and the battery voltage has to be controlled under 48 volts. Also, there are many additional requirements such as being fireproof and tamper-proof, as well as a stronger protection system for the battery in order to prevent battery failures and incidents. Any electric bicycles that do not meet the standard would not be allowed to go on the streets anymore. Therefore, many cities are rapidly replacing their public sharing bikes to the newer version in compliance with the national standards. If any manufacturers are caught making and/or selling electric bikes that do not meet the new standards, they would face punishments such as fines, revocation of business license, or even criminal charges. Instead of big cities such as Beijing and Shanghai, smaller cities have a greater appetite for electric bikes. The reason is that in smaller cities, the bike-sharing system is not as completed comparing to big cities. And with higher taxi costs in smaller cities, bike-sharing is a preferred method of transportation. Hence, instead of privately-owned, state-owned electric bicycles are more popular in smaller cities as they provide public transportation with lower costs in the form of bike-sharing.

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The Top 15 Electric Bikes Manufacturers in China ===== 1.     Xiaomi

Xiaomi is a Chinese company that manufactures many differen types of electronic products, including but not limited to phones, tablets, computers, air purifiers, portable batteries, and TVs, etc. Electric bike is one of the many products that Xiaomi produces. The types of electric bikes that it holds vary from smaller bikes for teenager to fast commuting bikes for busy workers. Overall, Xiaomi’s electric bikes are known for being budget-friendly while providing good value for the money spent. And the designs are usually aesthetically pleasing while maintaining the function of the bike, which makes these Xiaomi electronic bikes more popular among young consumers.

Sales record of Xiaomi bikes from 2015 to 2022

2.     Wuxi Dongma Vehicle Co.

Wuxi Dongma is a relatively young vehicle corporation founded in 2015. The company’s goal is not only to bring more innovative and high-quality models to the market, but also to provide better customer service to its clients. In comparison to its competitors, Wuxi Dongma tends to have designs that are more futuristic and robotic, which attract customers that prefer a more robotic design.

3.     Linyi Changlu International Trade Co.

Electronic bikes made by Linyi Changlu are bikes that look more like a simple electronic motorcycle but still remains to be low-speed. Comparing to most of its competitors, the company is relatively new (opened in 2019), but its products are guaranteed to be following the new national standards announced by the Chinese government. Also, the company is known for exporting to foreign markets because it is CE-certified, which means European and British customers are able to purchase the bikes with no issues from the customs.

5.     Fuji-ta

Fuji-ta is one of the strongest competitors in the electronic bike market. Unlike other companies in the market, Fuji-ta focus on the production of bikes only (especially electronic bike). Founded in 1992 and based in Tianjin, Fuji-ta completes most of its manufacturing either domestically in China or overseas in Vietnam, Cambodia, and Sri Lanka. With its five production and processing bases, Fuji-ta is not only the largest bike exporter in China, but it is also the biggest electronic bike manufacturer in the world. One of the achievements that made Fuji-ta the biggest exporter is its ability to obtain quality certifications from popular exporting destinations such as South Korea, the United States, Japan, and Europe.

Fuji-ta’s environmental contribution

Fuji-ta is also known for its contribution to environmental protection. Through the implementation of its sewage station project, waste gas treatment project, water-based paint, surface treatment line sewage, as well as its own treatment of solid wastes.

o   Sewage Station Project: increasing the COD standard from 150mg/l to 60mg/l; sewage treatment capacity is increased to 80m^3/H, which reduce COD emission to 26.01 tons/year, as well as improving other indicators.

o   Waste Gas Treatment Project: Fuji-ta implemented the ecological low-temperature plasma gas treatment technology, which requires lower energy consumption while still maintaining efficiency. The project reduced air pollution and provided a healthier work environment for the employees.

o   Water-based Paint: Fuji-ta replaced the solvent-based paint with water-based paint to save energy, reduce emission, protect the environment as well as employee’s health. Overall, the water-based paint is a cleaner product that Fuji-ta used to prevent further damages to the environment.

6.     Wuxi Tenghui Electric Vehicles Co., Ltd

Wuxi Tenghui produces electric bikes that follow the ISO 9001, which is an international quality system certification from 2000. The electric bikes it produces are sold both domestically and internationally with EEC certificate. Export destinations include the North and South Americas, India, and European countries such as Spain and the UK.

7.     Changzhou Daimyo Vehicle

Changzhou Daimyo Vehicle, located in Xinbei of China, is an electric bike manufacturer managed by foreign-funded electric bicycle enterprises. Instead of domestic sales, Changzhou Daimyo focuses on exporting to foreign countries such as Germany, Italy, Greece, Netherlands, France, UK, Thailand, Vietnam, Australia, as well as the US. The company is also known to be a member of China Cycling Association.

8.     Zhejiang Hangpai Electric Vehicle Industry

Founded in 2006 with a export market in Europe and the Americas, Zhejiang Hangpai Electric Vehicle owns certificates from TUV Nord, TUV Rheinland, as well as CE and Rohs certificates. Iron frames treated with galvanized bath is a feature of the company’s electric bikes. Product types include bicycle, scooter, motorcycle, and tricycle, all of which are electronic. One of the most popular products on the company website is the “Frame mounted battery strong rear rack 36v 350w city ebike”, which includes a 26-inch wheel, a 48V and 13AH lithium battery, as well as an LCD display.

9.     Ningbo Lvkang Vehicle

Ningbo Lvkang Vehicle is founded and located in Yuyao City, Zhejiang Province of China, which is about 2.5 hours away (by car) from Shanghai. Some of the popular products from this company include electric mountain bikes, electric folding bikes, electric city bikes, as well as electric bikes with bigger tires and power. One of the featured products is called “Lee9060 Fat Mountain Electric Bike”, which features big tires for more comfort when riding on snow, sand, and mountain trails.

10.  Jiangsu Lvneng Electrical Bicycle Technology

Jiangsu Lvneng Electric Bicycle Technology was founded in 1999 and headquartered in Changzhou City of Jiangsu Province. The company has two factories that are located in Changzhou and Tianjin respectively, both equipped with 700 staff and 50 engineers for product development and quality control. Annual production capacity of the company is 1 million electric bikes and scooters. Jiangsu Lvneng Electric Bicycle emphasizes on its production of motor and battery. Some of the featured products include Alpha S-750W Electric ebike, Alpha-250W Electric ebike, LN20M04-500W Electric ebike, LN20M04-M Electric ebike, LN20M04 fat tire electric bike, 20F02 folding electric bicycle, and LN26C06 Electric bicycle 36v.

11.  Changzhou Sobowo Vehicle

Changzhou Sobowo was established and headquartered in Jiangsu Province in 2014. Although the company produces both electric bike and tricycles, its specialty is the fat-tire electric bike, which has a strong presence in the North American market. The company claims that its fat-tire electric bikes are durable and powerful, and that they are adaptable to different weather. One of the most popular fat-tire electric bikes that it has is called the “All Terrain Full Suspension Mid Drive Electric Fat Bike”, which is equipped with a Samsung battery and Tektro Mechanical/hydraulic disc brake.

12.  Zhejiang Trewers Electric Bicycle Manufacturing

Zhejiang Trewers Electric Bicycle was founded in 2004 and specialized in production of electric bikes, as well as electric motorcycles and scooters. The company is certified with ISO9001 and owns over 10 independent patents for its product development. Also, electric bikes produced at Zhejiang Trewers are equipped with intelligent anti-theft system, smart locks, as well as supersonic nuclear magnetic motor. All of which are highlights of the company’s product development team and are often the attracting features to consumers.

13.  Changzhou ET Technology Co., Ltd.

Changzhou ET Technology is a technology company that focuses on the production of electric two-wheel vehicles. Although it does have a production line for electric bicycles, the main focus of its production is electric scooters and motorcycles that are within the regulations for low-speed electric vehicles. The trade capabilities of the company are as follows:

14.  F-wheel DYU

F-wheel DYU was founded in 2013 and specialized in making small and lightweight electric bikes for more convenient commute. There are currently seven products on the company website, which are mostly small-size electric bikes. The lightest bikes are 15 KG and the heaviest one is 21.6 KG. The heaviest bike is called the “F-wheel Z1 Electric Bike”, which is a small and z-shaped city bike equipped with a 7.5/10AH battery, a 36V brushless motor, and maximum speed of 25 kilometers per hour.

15.  Jinhua Beite Electric Bike Factory

Jinhua Beite, founded in 2006, focuses on manufacturing of electric bikes for various purposes such as mountain rides, city commute, fat tire, as well as folding bikes that are convenient for carry around. The company is certified with CE, EN15194, Fa, and Certificate of Origin, which enable it to export to other continents for bigger markets. One of the highlighted products that the company has is called the “TDN-01Z-1 Fat folding”, which is equipped with 20” fat tires and the ability to be folded for mobility. The bike is made with a 36V10Ah lithium battery from Samsung, and its maximum speed is 28 kilometers per hour.

-       Electric Tricycles
Though the traditional gasoline tricycles have been a common vehicle in China, the use of electric tricycles is not as popular as its counterparts (electric bicycles and four-wheeled low-speed electric vehicles). Some of the largest tricycle manufacturers in China include Huaihai, Jinpeng, Haibao, Bird, and Bestway.(cite)  With the new trends in energy efficiency, electric tricycles are declining in the vehicle industry. The number of output decreased from 12.67 million units in 2015 to 9.82 million units in 2019, mainly due to new regulations in environmental protection, price increase, and local control. Although regulations in Beijing state that only elders and the disabled are allowed to purchase low-speed electric vehicles like electric tricycles, no law enforcement actions are enforced against those who violate the rules. Hence, many people purchased these electric tricycles without worrying that they will be caught and fined.

One of the popular models of electric tricycles in China is called the Shenghao Q5, which is equipped with a 48-72v lead-acid battery and a small electric motor with an output of 1.07 horsepower.

Huaihai:

Huaihai Holding Group, founded in 1976, is a technological research company that focuses on new energy vehicles. Other than domestic sales, Huaihai also conducts business in South America, South as well as Southeast Asia. The company’s market sales also ranked No.1 in the industry for 14 years consecutively, and it also ranked first in small vehicle export and logistics vehicle till 2020. The types of electric tricycles that the company sells vary from golf-cart-looking vehicle for commuting purposes to cargo electric tricycles. One of the new models that Huaihai has is a passenger electric tricycle called “Hi-GO”, which is a tricycle with a new design patent and a maximum capacity of 6 people in the vehicle. The technological information about the vehicle is as follows:

Other electric tricycle brands in China:
Haibao

Jinpeng

Bestway

Bird

Government regulations on electric tricycles:
With a bloom in e-commerce and the delivery service, the use of electric tricycles increased rapidly and is causing traffic congestion and safety concerns on the road. Hence, the government limits delivery electric tricycles to be within 1 meter in width, 3 meters in length, and 1.4 meter in height, and 180 kg would be the maximum load that the tricycle is allowed to hold; moreover, the maximum speed of delivery electric tricycles is 15 kilometers per hour, which is slower than most of the low-speed electric vehicle.

-       Four-Wheeled (golf carts)
Golf carts are one of the most widely known low-speed electronic vehicle that is four-wheeled. Though they cannot be driven on the roads like other electric vehicles, they are still an important icon of low-speed electronic vehicles.

Alibaba has developed a four-wheeled golf cart that narrower than many other exiting golf carts; instead of steering wheel, a pair of handlebars are incorporated, making the golf carts look like a four-wheeled motorcycle. The golf cart comes with side view mirrors, an electronic horn, blinkers, multiple gears for different roads, parking brake, as well as suspension, most interestingly, it comes with a bicycle basket. The cart is equipped with a 1000W motor, which has a maximum speed of 30 kilometers per hour. Overall, the golf cart from Alibaba looks like a combination of electric bike and tricycle.

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List of Chinese Golf Cart Companies: ===== Zhejiang Wuyi Dongfeng Mechanical Manufacturing CO., Ltd

Shenzhen Shuran Sports Equipment Ltd.

MR Golf Cart Limited

Trolli King Hardware Products (Shenzhen) Co., Ltd.

Suzhou Falcon Electric Vehicle Manufacturing Co., Ltd.

Shenzhen Marshell Green Power Co., Ltd.

Yongkang Strong Industry and Trade Co., Ltd

Consumer Trends in Electric Vehicles:
The concept of green/clean energy in China has been growing since the awareness for climate protection rose. Most industries and even households (in urban areas) are looking to convert to green energy. As one of the biggest factors of air pollution, transportation has also grabbed the attention of green-energy consumers. Comparing to traditional combustion vehicles, electric vehicles are three times as efficient in energy; and in comparison to plug-in hybrids, electric vehicles are twice as efficient. However, energy efficiency is not the only reason why electric vehicles have a growing market in China. As a country with huge marketing and branding industries, electric vehicles promotions have somewhat contributed to the growing number.

China’s consumption of electric vehicles is mainly growing within the middle-class. Contrarily to the west, male vehicle owners in China who are well-educated and get paid a higher-class salary prefer to stick to the traditional internal combustion vehicle instead of converting to electric vehicles. One of the reasons could be that driving a gasoline vehicle is a sort of status proof, which somehow satisfies the vanity of the higher-class young male group. Moreover, given that electric vehicles are only a growing industry (meaning it is not fully developed), charging and maintenance could be more difficult than that of traditional gasoline vehicles. In order to mitigate the difficulty in maintaining an electric vehicle, green energy activists are calling for the Chinese government to subside the development of charging posts and battery maintenance aids, as well as policy modifications to encourage the use of electric vehicles.

Chinese consumer attitude toward electric vehicle:
As the world urges to converge to greener energy consumption, consumer habits and attitudes toward electric vehicles change throughout the years. In the year of 2019, a survey on whether they would consider buying an electric vehicle was conducted in China. The survey started on June 7 of 2019, and it ended on June 30, 2019. Total number of respondents were 1511, all of whom were above 16 years old. As of June 2019, more of half of the respondents voted yes, accounting for 56.98% of the survey population; on the other hand, 43.02% voted no. The electric vehicle industry has been growing rapidly since, in 2021, China has approximately 3.2 million electric vehicles sold, which was an increase of 2 million electric vehicles comparing to last year. With the increase in electric vehicle sales, China dominates the industry with an overall market share of 53%, and the penetration rate of electric vehicle increased in 6% in 2020 to 13% in 2021. XPeng Motors, NIO Inc. and Li Auto Inc. accounted for approximately 60% of the electric vehicles sold in 2021.

XPeng Motors: Though relatively new comparing to many of its competitors (founded in 2015), XPeng Motors is a popular brand for electric vehicles in China. Most of its suppliers come from the eastern as well as the southern part of China. Out of the 376 tier 1 suppliers in 2021, 199 of them were from East China and 133 were from South China. In order to follow regulations and become a leader in environmental protection, the company also contributed to environmental management with its green operation, resource efficiency methods, as well as management of waste discharge and emission. Xpeng Motors is also traded on NYSE. Currently the company has four models of electric cars, which are P7, P5, G3i, and its flagship model G9. Similar to many electric vehicles in the United States, XPeng Motors incorporates smart technology into its electric vehicles. Some of the smart technologies include XPilot, which is a driver assistance system with automatic driving function; the electric cars are also equipped with Xmart OS, which is a software system developed by the company to be incorporated in the electric cars. In the year of 2022 so far, XPeng Motors sold 19,427 of its P7 model, which is an 144% increase comparing to last year; the new model P5 has a sales record of 10,486 up until March in 2022; however, the G3/G3i model only has 4,648 units sold so far, which is a 13% decrease from last year. Overall, the total units of electric vehicles sold up until March of 2022 is 34,561, which is a 159% increase comparing to last year.

The followings are sales statistics on XPeng Motors sales:

Chinese Government's Goal and the Challenges
By encouraging the purchase and use of electric vehicles, the Chinese government tempts to completely transition from conventional gasoline/diesel cars to green energy vehicles. The government’s goal is to have 5 million electric vehicles on the road by 2020, and rapidly increasing that to 80 million by the end of 2030. With growing number of electric cars on the road, having enough charging posts become a challenge. The government installed 7,400 fast-charging stations and 2.5 million charging units, all of which are spread out in parking lots of apartment and office buildings. Greenhouse gas emissions from an electronic vehicle is about 10.44 kilograms (CO2) per 100 kilometers, whereas a conventional gasoline vehicle emits 18.24 kilograms of CO2 per 100 kilometers of driving, hence, driving an electric vehicle decreases greenhouse emission by about 36%. MIT research finds that 40% of vehicles sold in China will be electric by 2030. However, something might hold back the transition to electric vehicles is the costs. Maintaining electric cars are costly because of the batteries. The prices of EV batteries are predicted to increase 22% by 2026 because of shortages in raw material. The cost to produce electric vehicles will also follow to rise because of the expensive batteries. Over 20 electric vehicle manufacturers in China had increased their prices on the cars in order to cover the costs of batteries. Li Auto, one of the leading electric vehicle manufacturers in China, revealed that it had to increase the price of its Li One sport utility vehicle to 349,800 RMB, which is a 11,800 RMB increase from the previous price. (41) Even manufacturers that produce low-price electric vehicle had to increase their prices to cover the costs. SAIC-GM-Wuling Automobile increased the price of its Hongguang Mini by more than 10% because of the shortage in raw materials for batteries.