In 2016, China lead the electric vehicle battery market, with 336,000 new electric cars being registered during the year. The electric car sales in China alone was more than double than the number of electric vehicles sold in the United States, where there were only 160,000 new registrations of electric vehicles. In European countries, the electric vehicle market remained concentrated within a limited number of countries. In Europe, the electric vehicle battery market was primarily lead by just six countries - Norway, the United Kingdom, France, Germany, the Netherlands, and Sweden. Across the globe, there were only ten countries that contributed significantly to the electric vehicle battery market - China, the United States, Japan, Canada, and the six leading European countries.
In the current market scenario, policy support is among the major factors driving the electric vehicle battery market, as policies have been lowering the barriers for electric vehicles adaptation. Policy support enables the growth of the market studied, by making vehicles appealing to consumers, reducing risks for investors, and encouraging manufacturers willing to develop electric vehicle or EV production on a large scale. In China, policies providing strong financial incentives and exemption of taxes spurred domestic growth. Similarly, in Norway, electric cars are exempted from acquisition tax, and BEVs or battery electric vehicles are exempt from 25% value-added tax (VAT) on car purchases. These policies are among other policies that play a significant role in the market’s growth.
The Chinese government has been providing both financial and non-financial incentives, to promote the adaptation of electric vehicles. Electric vehicles are exempted from acquisition and excise taxes, ranging between CNY 35,000 and CNY 60,000. Some cities in China have also been allowing total or partial waivers, from license plate availability restrictions. The robust electric vehicles sales in China can be attributed to the imposition of license plate restrictions, electric vehicles adaptation encouragement programs, and financial incentives. In the country's national plan for 2016 - 2020, under the subsidy schemes and product technology requirements for the promotion of new energy vehicles, the Chinese government announced that subsidies for EVs would be reduced by 20%, from 2017. However, despite the reduction in subsidies, the Chinese electric vehicle market witnessed a growth in 2017.
Low-speed electric vehicles (LSEVs) have been garnering attention in the global electric vehicle market, primarily in China, where they have emerged as a competitor to both electric vehicles and two wheelers. LSEVs have speed ranging between 40 to 70 kmph, and in some cases use lead-acid batteries and basic motor technology. It is estimated that the sale value of LSEV grew by roughly 50% in 2016 to reach about 1.3 million.
Major Players: Panasonic, LG Chem, BYD, Samsung SDI, Johnson Controls International PLC, GS Yuasa, Hitachi Group, Automotive Energy Supply Corporation, Blue Energy Co. Ltd, Lithium Energy Japan, and Robert Bosch GmbH, among others.
Looking to Customize Report?