Tesla sales expected to increase in China

Tesla sales expected to increase in China

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TESLA SALES EXPECTED TO INCREASE IN CHINA

China, which accounts for nearly 40% of the global EV market, has always been one of the Tesla’s (TSLA) target markets. Tesla entered the Chinese market in 2014, early in its global expansion phase. The strategy has paid dividends and China currently is US automaker’s biggest market outside of the USA. To date, Tesla has sold around 250,000 of the Model S and Model X worldwide of which over 10% was sold in China. Tesla now accounts for nearly 3% of all EVs on Chinese roads, by far the most of any foreign-owned automaker in the electric vehicle sector.

Tesla-Sales-breakdown-in-China-and-USA

The Chinese Government has always been very protective of its auto sector enforcing a strict 50/50 ownership policy on foreigners wanting to manufacture locally. Although Tesla is currently in negotiations to establish vehicle and battery manufacturing in Shanghai’s free trade zone, it will have to continue importing vehicles into China for at least another five years, exposing its operations to import tariffs. With China’s aggressive promotion of electric cars, Tesla will remain on the back foot to competitors with local production as Tesla models carry a 25% import tariff. Up to now, Tesla has been able to double its sales since 2015. Sales for 2017 are on track to double again despite a reduction in EV subsidies announced in January by the Chinese Government.

Chart-tesla-Sales-in-China

At some point, however, the high-end market will become crowded with local products, which will be at least 25% cheaper than that of Tesla’s imported vehicles. The introduction of the Model 3 will open a new segment for Tesla, but with delays in production, we can only see Tesla distributing the Model 3 in the Chinese market by 2019 at which point many other foreign makers will locally produce EVs. Various foreign auto brands have announced their intentions to produce a range of EVs exclusively for the Chinese market, including Tesla’s major competitors GM and the Nissan PSA Alliance.

Trade agreements announced during President Donald Trump’s recent visit to Beijing will, however, give Tesla’s sales some support. The Chinese Vice Finance Minister, Zhu Guangyao, announced on Friday the 10th of November 2017 that the country will gradually lower tariffs on imported vehicles. Minister Zhu went further announcing that the ownership restrictions on foreign manufacturers will be lifted very soon, allowing foreign auto brands to establish 100% owned plants in any one of the country’s eleven free trade zones. The minister did not give any timeframe on the easing of import duties though.

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Comparing China’s popular pure electric SUVs – BYD Song vs Roewe eRX5

Comparing China’s popular pure electric SUVs – BYD Song vs Roewe eRX5

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Comparing China’s popular pure electric SUVs – BYD Song vs Roewe eRX5

This year saw the launch of two much-anticipated pure electric versions of popular SUVs of 2016, the BYD Song EV300 and SAIC Roewe eRX5 EV400. Interest pre-launch was very high with the SAIAC Roewe eRX5 receiving 3,000 pre-orders in just 4 days.The mini-car segment has thus ben the best performer in the Chinese electric vehicle sector, but since the launch of

The mini-car segment has thus ben the best performer in the Chinese electric vehicle sector, but since the launch of these two models, the SUV segment has been the second best-performing segment. Since the launch of the BYD Song in May 2017 followed by the Roewe eRX5 a month later nearly 6,000 units have been sold, with the SAIC Roewe eRX5 holding the record for most sales in a month thus far.

Byd-song-vs-saic-roewe-erx5-sales-chart-300

Pricing:

Though the MSRP before incentives favors the BYD Song, the subsidized price of the vehicles is relatively the same, with the Roewe eRX 5 marginally lower. The lower price for the Roewe eRX5 is due to it benefiting from an extra 10% subsidy since its battery energy density is higher than 120Wh/kg. The eRX5 subsidy is therefore 72,600 yuan to total a sales price of 198,800 yuan, and the Song receives a 66,000 yuan subsidy, ultimately costing 199,900 yuan.

BYD-SOng-Saic-erx5-compare

Charging: Left- SAIC Roewe eRX5 Right – BYD Song EV300

Battery:

The reason why the Roewe eRX5 has a better energy density is that it uses a Ternary Lithium battery, generating weight savings and resulting in longer mileage. The BYD Song on the other hand still uses a lithium iron phosphate battery which is heavier and packs less energy. We expect this to change in the near future as BYD has started using Ternary Lithium batteries in its plug-in hybrid models.

Charging:

The Roewe eRX5 pure electric version is equipped with a 7kW AC charger and higher power DC fast charger than the BYD Song EV300. The SAIC Roewe eRX5 charges on Level 2 in only 7 hours, compared to 10 of the BYD Song and fast charge to 80% full in 40 minutes whereas the Song takes over an hour.

Interior:

The BYD Song EV300’s styling, which is the same as the 2016 ICE and PHEV model is still very much according to the traditional BYD look and has not yet benefited from the recent appointment of Audi’s former head of design, Wolfgang Egger. The SAIC Roewe eRX5 styling, on the other hand, has a more western influence resulting in a stylish feeling and modern sense of technology due to its full LCD instrument panel (12.3 inch) and a 10-inch multimedia display.

Functionality:

BYD has a basic configuration, focused on practicality first. The BYD Song EV300 offers a multi-function steering wheel, leather seats, automatic air conditioning, color control of its multimedia screen, panoramic sunroof and much more, giving the owner real value for his money. The Song EV300 instrument panel fully embodies the characteristics of practical first. Although the interface is relatively simple, the functionality is reasonable and information rich. In addition, the Song EV300 has optional seat heating, which is not available in the eRX5.

The BYD Song EV300 still uses a traditional shift lever for driving mode selection, one of the few new EVs to still do so. The shifter selects between two driving models, energy saving and sports two driving modes. Energy recovery intensity can also be set. In addition, the Song EV300 also equipped with BYD’s unique mobile power plant technology, providing external power 220V AC for your outdoor equipment.

Although the eRX5 is seen as the more technologically advanced of the two vehicles the Song does not completely fall behind with 360 ° panoramic image, PM2.5 green net system, a Carpad multimedia system, TPMS tire pressure monitoring system and a BOS brake priority system.

The SAIC Roewe eRX5 benefits from ALIBABA and SAIC co-operating in 2016 to develop the first internet car, providing software and Internet functions such as Ali cloud and the Zebra Zhixingc internet-connection system. In addition, Roewe ERX5 is also equipped with dynamic energy management, remote control, battery doctors and other technical solutions. The 12.3 inch full LCD dashboard display is also remarkable. Unlike the BYD Song, the Roewe eRX5 uses driving control keys, concentrated near the gears. The MODE button is used to adjust the driving mode and the KERS button is used to adjust the energy recovery strength. The BATTERY button is inherited from the plugged-in version of the eRX5 but does not work on the pure eRX5. There are three driving modes, namely, standard, sports, energy saving. After switching the driving mode, the theme color of the dashboard changes. Although the Roewe eRX5 is not 4WD it is equipped with active anti-roll, steep slope slow down, ramp support and other functions. The Roewe eRX5’s central armrest incorporates an air purifier.

 

BYD-Roewe-SUV-compare-Cab

Interior and Controls: Left- SAIC Roewe eRX5 Right – BYD Song EV300

 

Tires:

The Roewe eRX5 is equipped with 235/50 R18 Michelin Primacy 3 ST Hao Yue tires and the BYD Song EV300 with 235/50 R19 Goodyear SUV series tires.

Luggage:

The eRX5 EV400 and its ICE and PHEV version has the same boot space and is not influenced by the battery pack. The Song EV300 luggage compartment floor is elevated by 4cm from its ICE version. The Rowe eRX5 has a front compartment of 60L, just enough for two backpacks under the engine cover.

Power:

In terms of power, the Roewe eRX5 falls short to the BYD Song, delivering only a maximum power of 85kW (116Ps) and maximum torque of 255Nm from its permanent magnet synchronous motor. The Song EV300 delivers 160kW (218Ps) and maximum torque of 310Nm from its permanent magnet synchronous motor.

Conclusion:

Both vehicles have pro’s and con’s but since they are evenly priced the SAIC Roewe eRX5 with its longer range and technology trumps the BYD Song’s extras in my opinion. BYD might be the undisputed leader in Chinese electric vehicle market for the moment but the entry of models such as the SAIC Roewe eRX5 will challenge BYDs position in the future

BYD-Roewe-SUV-compare back

Table-SAIC-Roewe-erx5-byd-song-bev-1000

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RENAULT NISSAN TO BUILD AN INTERCONNECTED EV FOR CHINA

RENAULT NISSAN TO BUILD AN INTERCONNECTED EV FOR CHINA

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RENAULT NISSAN TO BUILD AN INTERCONNECTED EV FOR CHINA

The Renault Nissan Alliance and Dongfeng Motor Group forged a partnership to co-develop electric vehicles in China according to a press release by Nissan. The new JV company is called eGT New Energy Automotive Co and will focus on the core competencies of each to produce EVs for the Chinese market. The first vehicle by eGT will be an A-segment SUV based on the Renault Nissan platform and is expected in 2019. The vehicle will be an intelligent and interconnected EV, which is the new rage in China. Alibaba and SAIC released the first successful mass-market interconnected car last year, the Roewe eRX5 SUV. Since then various other companies and start-ups, such as XPENG, announced strategies to focus purely on interconnected vehicles.

“This project is the result of a joint effort to develop electric vehicles for the Chinese market, by the ‘Golden Triangle’ formed by Dongfeng, Renault, and Nissan, with an innovative business model,” said Zhu Yanfeng, Chairman of Dongfeng. “We expect to meet the transformation trend of the market in China; where cars are becoming light, electric, intelligent, interconnected and shared. This is also testimony of a deepened and strengthened strategic cooperation between the three parties.”

The new venture is owned 25% each by Renault and Nissan while Dongfeng will hold the remaining 50%. eGT will be headquartered in the City of Shiyan, Hubei Province and assembly of the EV will be done at the 120,000 capacity Dongfeng plant in Shiyan.

Renault-Nissan Alliance and Dongfeng Motor Group Co., Ltd. EV JV

 

The featured image does not represent the new EV but is that of the 2018 Nissan Pathfinder.

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