Overview of the Development of New Energy Vehicle Market in 2022

Abstract

Thanks to years of industrial cultivation and development, China’s new energy vehicle (NEV) industry system becomes increasingly complete and mature in both system and policies, with the growing strength of NEVs, especially in endurance ability and safety. With the climbing productivity and sales, the market demand sees significant rise in recent years. Based on the real-time operation data of 12.073 million new energy vehicles as of the end of December 2022 from the National Monitoring and Management Platform for New Energy Vehicles (hereinafter referred to as the “National Monitoring and Management Platform”), this Report objectively analyzes the hot spots of the NEV market, vehicle operation, vehicle charging, and other industrial concerns, summarizes the travel and charging patterns of NEVs, and puts forward relevant development suggestions, as a reference for the relevant government departments, scientific research institutes, colleges and universities, and enterprises of China's NEV industry.

Thanks to years of industrial cultivation and development, China's new energy vehicle (NEV) industry system becomes increasingly complete and mature in both system and policies, with the growing strength of NEVs, especially in endurance ability and safety. With the climbing productivity and sales, the market demand sees significant rise in recent years. Based on the real-time operation data of 12.073 million new energy vehicles as of the end of December 2022 from the National Monitoring and Management Platform for New Energy Vehicles (hereinafter referred to as the “National Monitoring and Management Platform”), this Report objectively analyzes the hot spots of the NEV market, vehicle operation, vehicle charging, and other industrial concerns, summarizes the travel and charging patterns of NEVs, and puts forward relevant development suggestions, as a reference for the relevant government departments, scientific research institutes, colleges and universities, and enterprises of China’s NEV industry.

1.1 Overview of the NEV Market

1.1.1 Overview of Global NEV Market

China's NEV industry has become the backbone in the automotive electrification transition worldwide. In 2022, the global NEV market continued its rapid growth, with sales volume of 10.55 million, up by 3.8 million over 2021 (Fig. 1.1). Such typical markets as China, Germany, the United States, the United Kingdom, and France, the sales volume exceeded 300,000 on annual average (Fig. 1.2). China’s NEV market sales maintained its climbing momentum, with a sales volume of 6.887 million, accounting for 65.3% of the global market, and topping in the world for eight consecutive years.

Fig. 1.1

Source China Association of Automobile Manufacturers (CAAM) for sales data of NEVs in China; EV-volumes (www.ev-volumes.com) for sales data of NEVs in countries other than China

Global NEV sales volume.

Fig. 1.2

Source Sales of China is sourced from China Association of Automobile Manufacturers; while the sales of other countries is sourced from EV-volumes

NEV sales volume in typical countries in 2022 and proportion in global total (in 10,000, %).

1.1.2 Current Marketing of NEVs in China

• (1) Remarkable achievements of china in vehicle electrification, with rapid growth in NEV market in 2022

China's NEV industry has ushered in an era of rapid development in large scale, proved by its soaring market penetration curve (Fig. 1.3). In 2022, China sold 6.887 million NEVs, an increase of 93.4% year on year, along with the explosive growth of market demand at this turning point of overall marketization. Also in 2022, NEV market penetration rate continued to rise to 25.6%, an increase of 12.2% points from 2021. The NEV access volume maintains a momentum of a rapid growth over the years (Fig. 1.4), of which that in 2021 and 2022 reached 2,732,000 and 5,418,000, respectively, with a year-on-year growth of 177.3 and 98.3% each.

Fig. 1.3

Source China Association of Automobile Manufacturers

NEV sales volume and growth in China over the years. Note Affected by the statistics of new enterprises in the previous year, the annual year-on-year growth rate was slightly adjusted.

Fig. 1.4

NEV access amount over the years on national monitoring and management platform

The rapid expansion of NEV industry brings a swift increase in vehicle electrification. According to data from the Ministry of Public Security, by the end of 2022, China recorded 319 million vehicles registered, including 13.1 million NEVs, indicating a rapid growth (Fig. 1.5). Meanwhile, the proportion of NEVs in the total quantity of vehicles also manifests an upward momentum from 0.3% in 2015 to 4.1% in 2022, an increase of 3.8% points, along with the accelerating rise of automotive electrification curve.

Fig. 1.5

Remarks Vehicle electrification rate = NEV holdings/Vehicle holdings in the same period. Source Ministry of Public Security

Changes in NEV quantity and vehicle electrification in china over the years.

With the rapid growth of the volume, the cumulative access rate of NEVs keeps rising year by year. By 2022, a total of 12.073 million NEVs accessed the platform (Fig. 1.6), with an access rate of 92.2%, indicating that 92.2% of NEVs in China are under monitoring for operation.

Fig. 1.6

Remarks Cumulative vehicle access rate = Cumulative NEV access rate/NEV holdings in the same period

Quantity of NEVs accessed the national monitoring platform over the years.

• (2) High concentration of NEV promotion, with nearly 70% accessed in top10 provinces by the end of 2022

Guangdong Province and Zhejiang Province completed access of more than a million NEVs to the platform, accounting for more than 1/4 of the total in China. By the end of 2022, the TOP10 provinces with cumulative access volume of NEVs nationwide had a total of 8,337,000 NEVs accessed, with a national share of 69.0% (Fig. 1.7). Guangdong Province and Zhejiang Province completed the access for a total of more than one million NEVs, with a cumulative number of 1,867,000 and 1,220,000, respectively, each accounting for 15.5 and 10.1% of the total in China.

Fig. 1.7

Cumulative access and proportion of NEVs in the TOP10 provinces

The promotion of NEVs in first-tier cities has achieved remarkable results. In the ranking of cumulative NEV access among TOP20 cities (Fig. 1.8), by the end of 2022, such first-tier cities as Shanghai, Shenzhen, Beijing, and Guangzhou took the top four places, each with cumulative NEV access volume of more than 500,000, accounting for more than 4% of China. Among them, the cumulative access volume of NEVs in Shanghai was 846,000, accounting for 7.0% of the national total, topping the list.

Fig. 1.8

Note ① Bubble size indicates the cumulative access volume of NEVs in each city by the end of 2022; ② The Data of urban resident population originates from the Communiqué of the Seventh National Population Census in 2021 by the National Bureau of Statistics of China

Cumulative access and electrification rate of NEVs in the TOP20 cities.

Leading cities are holding over 400 new energy passenger cars per a thousand users, of which such number exceeds 200 in each of the TOP10 cities. The national average of new energy passenger car owned per 10,000 users was 76.8 in 2022 (Fig. 1.8). In terms of the cumulative NEV access in the TOP20 cities in 2022, Hangzhou and Liuzhou ranked in the top two in new energy passenger cars holdings per 10,000 users, with 392.5 and 349.1 respectively, ahead of such first-tier cities as Beijing (247.9), Shanghai (321.5), Guangzhou (264.5), and Shenzhen (329.4); and each of the rest cities recorded within 200 per 10,000 users.

• (3) Increasing number of new energy passenger cars over the years from 67.2% in 2017 to 94.8% in 2022

New energy passenger cars dominate the NEV market, with the market share increasing yearly. In light of the changes in the access structure of various types of vehicles on the National Monitoring and Management Platform over the years, new energy passenger cars dominate the market and show a rapid expansion trend in their market share. In 2022, the access volume of new energy passenger cars took a proportion of 94.8%, of which BEV-passenger cars accounted for 72.9% with a dominance; PHEV-passenger cars witnessed a rapid growth in market share with the proportion of access volume exceeding 21.9%, an increase of 4.5% points over 2021 (Fig. 1.9).

Fig. 1.9

Proportion of access volume of NEVs of different types over the years

Consumer demand in cities not subject to purchase restrictions is robust, and the market share of new energy passenger cars is increasing yearly. Under the stimulation of consumption promotion policies, diversification of product supplies, and increasing product quality, the awareness and recognition of NEVs by users in cities not subject to purchase restrictions have gradually increased, contributing to the surge of consumer demand. According to the proportion of access volume of cities subject to purchase restrictions and not subject to purchase restrictions over the years, the market share of new energy passenger cars in cities not subject to purchase restrictions in 2022 was 74.1, 6.9% higher than that in 2021, showing an increasing trend in the market share (Fig. 1.10).

Fig. 1.10

Changes in the proportion of access volume of new energy passenger cars in cities subject to purchase restrictions and cities not subject to purchase restrictions

The NEV access volume in the TOP15 cities in 2022 is shown in Fig. 1.11, wherein Shanghai, Shenzhen, Hangzhou, Guangzhou, and other cities subject to purchase restrictions are at the forefront of the access volume, with robust consumer demand. The annual access volume in Shanghai reached 314,000, topping the list with an proportion of 5.8% of the total in China. In terms of the proportion of access volume of new energy passenger cars to local NEVs promoted in the TOP15 cities, the new energy passenger cars in the TOP15 cities accounted for 50% of the total promotion in the TOP15 cities. Ningbo, Hangzhou, and Wenzhou ranked the top three in local access volume of new energy passenger cars, each exceeding 96%.

Fig. 1.11

Note ① Bubble size indicates the access volume of NEVs in each city to the National Monitoring and Management Platform in 2022; ② Proportion of new energy passenger cars = Annual access volume of new energy passenger cars in the city/Annual access volume of NEVs in the city

NEV access and proportion of passenger cars in the TOP15 cities in 2022.

• (4) Pilot program for overall vehicle electrification in the public sector started, with expected development of new energy commercial vehicles

New Energy Vehicle Industry Development Plan (2021.2035), Action Plan for Carbon Dioxide Peaking Before 2030, and other related policies have provided arrangements and requirements for the electrification of vehicles in the public sector. According to the data of the Ministry of Transport, by the end of 2021, the proportion of new energy buses in cities within China exceeded 66%, and more than 86,000 NEVs for urban logistics distribution were added in 46 green freight distribution demonstration cities, indicating gratifying progress in vehicle electrification in the public sector. For the purpose of further energy conservation and emission reduction in the automobile industry and faster development of green and low-carbon transportation systems, on February 3, 2023, the Ministry of Industry and Information Technology, the Ministry of Transportation, and other eight ministries jointly issued the Notice on Organizing the Experimental Programs of Pilot Zones for the Comprehensive Electrification of Vehicles in the Public Sector (hereinafter referred to as the “Notice”), planning to increase the ratio between the new public charging piles and the number of NEVs promoted in the public sector to 1:1 during the period of 2023–2025, thus significantly advancing the progress of vehicle electrification. The proportion of NEVs in the new and renewed vehicles in the pilot areas sees a significant increase, of which the proportion of urban buses, taxis, sanitation vehicles, postal courier carriers, urban logistics and distribution vehicles strives to reach 80%.

The frequent application in public sector with long operating hours per unit of time boosts the electrification of commercial vehicles, thus advancing the clean-up process in the road transport sector. The industry of China’s new energy commercial vehicles lags behind the whole market of NEVs. Compared with the overall rapid growth of market penetration of NEVs, the market penetration of the public sector in China, especially new energy commercial vehicles, is low. In 2022, the overall market penetration of NEVs was 25.6%, while that of new energy commercial vehicles was only 10.2% (Fig. 1.12), and that of new energy trucks was merely 8.5% (Table 1.1). In respect of operation characteristics, NEVs in the public sector are more frequently in use with longer mileage on month average (over 2000 km per vehicle for public use in 2022 versus less than 1000 km per vehicle for private use in 2022). The vehicles in use have contributed substantial carbon emissions at the operational end, of vital importance for low-carbon development in the transportation sector.

Fig. 1.12

Sales volume and market penetration of commercial vehicles in China over the years

Table 1.1 Sales volume and market penetration of NEVs in 2022

• (5) Expediting cleaning process of trucks in the area of air pollution prevention and control, with remarkable contributions to keep the sky blue

It is an inevitable trend for transformation from traditional technologies to zero emission technologies for trucks. To promote the process of freight cleaning, on October 29, 2021, the Ministry of Ecology and Environment, in conjunction with nine ministries and commissions and several local governments, issued the Program for Comprehensive Prevention and Control of Atmospheric Pollution in Fall and Winter for 2021 and 2022 (H.D.Q [2021] No. 104), which lists Beijing, Tianjin, Hebei, neighboring “2+26” cities, and the cities in the Fenhe and Weihe plain, northern Hebei, northern Shanxi, eastern and southern Shandong, and southern Henan as key areas for air pollution prevention and control, making constant efforts to defend the blue sky by means of scientific and effective policies and initiatives. By the end of 2022, a total of more than 170,000 new energy trucks were accessed within Beijing-Tianjin-Hebei region and its surrounding areas, including 46,000 new energy trucks recorded in 2022, a year-on-year increase of 106.9%. The cumulative mileage of new energy trucks in the areas of air pollution prevention and control reached 6.166 billion kilometers, contributing to a cumulative reduction of 2.75 million tons of carbon emissions, which indicated an outstanding outcome to defend the blue sky.

Heavy-duty truck emissions plays a pivotal role in carbon emissions in the segment of road transportation, and accelerating the cleaning process of heavy-duty trucks is expected to propel the reduction of carbon emissions in the transportation sector. According to a study by the Chinese Academy of Engineering,¹ the carbon emissions from the road transportation accounted for 86.76% of the total emissions in the transportation sector, while that from heavy-duty trucks had a share of 54% of the total in the segment of road transportation. Promoting the electrification of heavy-duty trucks is the key orientation for reducing pollution and carbon emissions and the core approach to achieve the “dual carbon” goals in the transportation sector. Tangshan, in recent years, has been stepping up the application of hydrogen and electric new energy heavy-duty trucks in ports, steel mills, and mines for bulk commodity transportation. Over 7,000 new energy heavy-duty trucks have been put into operation, making it a significant and valuable case of low-carbon and zero-carbon development for regions with high carbon emissions from transportation.

• (6) Larger scope of application for the model of “separation of vehicle and battery” from successful promotions and applications of vehicles of battery swapping

NEVs are the future of the automobile industry, while battery swapping serves as a key impetus to further enhance the penetration of NEVs. Battery swapping can effectively eliminate the dilemma of electric vehicles for power charging thanks to its edges, including less charging time, lower battery loss, secured driving, and less space occupation. There are abundant application scenarios for NEV battery swapping, such as private cars (consumer) and taxis or heavy-duty trucks (business). The mileage anxiety and strict requirements of power charging efficiency for NEVs can be effectively resolved under this mode. Some progress has been made in diversified application scenarios of battery-swapping vehicles. By the end of 2022, a total of more than 290,000 battery-swapping BEVs accessed the National Monitoring and Management Platform, including 279,000 battery-swapping passenger cars and 11,000 battery-swapping commercial vehicles. The application of battery-swapping passenger cars covers private cars and official passenger cars, and taxis, and NIO, Geely, BAIC and other vehicle companies have started its business efforts in battery swapping; in field of passenger car replacement. The application of battery-swapping commercial vehicles covers logistics vehicles, engineering vehicles, and sanitation vehicles, and Hanma Technology, XCMG, SAIC Hongyan, SANY Heavy Industry, and other enterprises are now engaged in battery-swapping for heavy-duty trucks.

The advantageous “separation of vehicles and battery” mode is expected to be further exerted in the segment of commercial vehicles for higher operational efficiency and less carbon emissions. In the segment of commercial vehicles, the mode can help significantly improve operational efficiency as it is commonly used in steel mills, coal workshops, and ports. The power charging efficiency for battery-swapping heavy-duty trucks rises significantly from one hour to only about five minutes, with an equivalent operational efficiency to traditional diesel vehicles. From the perspective of battery life cycle, the “separation of vehicles and battery” is conducive for the innovation of business modes for upstream and downstream participants on the industrial chain, such as developing the closed-loop asset circulation system in the whole life cycle of power batteries, tapping the commercial potential of battery banks, and innovating the upstream and downstream cooperation patterns on the industrial chain of power batteries.

• (7) Over 10,000 fuel cell electric vehicles (FCEVs) in China accessed the National Monitoring and Management Platform and better supporting systems in need for the healthy development of the industry

Featuring a long industrial chain and massive participants from upstream and downstream, hydrogen energy and fuel cells have become a new engine for local governments to replace old growth drivers with new ones and speed up the high-quality development of green energy. In March 2022, the National Development and Reform Commission and the National Energy Administration jointly issued the Medium- and Long-Term Strategy for the Development of the Hydrogen Energy Industry (2021–2035), which defined the top-level design and strategies for the hydrogen energy industry at the national level and highlighted the transportation sector as the focus for diversified applications at the downstream of the industrial chain. By the end of 2022, the cumulative access volume of FCEVs in China reached 10,564, mainly buses and special-purpose vehicles, of which bus promotion covers the fields of bus, highway, commuting, and tourism, while the promotion of special-purpose vehicles covers logistics, sanitation, engineering, and other fields. In the segment of vehicle operation, the cumulative mileage of FCEVs in China exceeded 300 million kilometers, and the driving time exceeded 12.519 million hours. As for fuel cell demonstration areas, Beijing 2022 and “3+2” demonstration city cluster and the demonstration technology demonstration projects of “Hydrogen into Ten Thousand Homes” and “Chengdu-Chongqing Hydrogen Corridor” have been running in full swing; the outcome of vehicle promotion has taken shape; and the upstream and downstream enterprises are gradually gathering into clusters, which played a demonstrative role to drive the development of FCEVs and hydrogen energy industry nationwide.

As indicated from the characteristics and problems in FCEV operation, there are still weak points on the industrial chain of hydrogen energy. The short mileage of special-purpose FCEVs in a single day is partly due to the imperfect hydrogen energy infrastructure and supply system and high hydrogen price in some areas, which affects the vehicle operation to some extent. For the long-term development of hydrogen energy and fuel cell industry, local governments need more efforts to promote FCEV demonstration and industrial cultivation, step up infrastructure construction, and deepen cooperation between upstream and downstream enterprises on the industrial chain based on regional superior resources and advantageous industries for the purpose of healthy and orderly development of FECV industry.

1.2 Characteristics of China’s NEV Technology Evolution in 2022

1.2.1 Technical Progress of New Energy Passenger Cars

Battery technology advancement plus user consumption upgrading drive the growth of NEV average mileage on yearly basis. The average mileage of new energy passenger cars increased from 300.3 km in 2020 to 336.9 km in 2022. With regard to BEV passenger cars, the proportion of models with driving range below 200 km as a ride remained relatively stable, and their market share in 2021 and 2022 also exceeded 15%; the number of BEV passenger cars with high driving range grew rapidly, of which those with drive range exceeding 500 km accounting for 41.7%, an increase of 17% points over 2021.

Lithium iron phosphate batteries are superior in cost and security with constant innovation of battery system integration; the installed capacity of lithium iron phosphate batteries continued to expand. Since the power battery system is gradually transforming from the internal structural innovation and integration to the external innovative integration and in-depth integration of power batteries and vehicle components, the number of structural parts is declining with the constant system innovation, thus lowering the quality of vehicles and increasing the driving range. In addition, with the emerging advantages of lithium iron phosphate battery in cost and security, the installed capacity of such batteries on the market saw rapid increase in recent years, with year-on-year growth of market share. In 2022, the installed capacity of lithium iron phosphate battery reached 63.9%, with an increase of 27.4% points and 12.7% points over 2020 and 2021 respectively, indicating an absolute dominant position in the market.

Consumption upgrading drives the development of passenger cars towards larger size and higher driving range, and the average curb weight of new energy passenger cars showed an upward momentum. In 2022, the average curb weight of BEV passenger cars and PHEV passenger cars was 1,409.6 and 1,962.4 kg, respectively, each with an increase of 2.3 and 6.0% compared with 2021. MEV market shows a clear trend of consumption upgrade, which drives the rapid growth of the market share of mid-to-high-end priced passenger car models with high driving range.

1.2.2 Effects of Energy Conservation and Emission Reduction from NEVs

Compared with fuel vehicles, NEVs are superior in emission reduction effects in the whole life cycle. This Report, focusing on BEVs, has an in-depth analysis of the effects of energy conservation and emission reduction based on the operating data of NEVs. This Report makes comparisons among different types of NEVs in power consumption over the years in terms of energy conservation and highlights the reductions of pollutants from various types of NEVs within China in the light of emission reduction.

With regard to the actual energy consumption, the changes in energy consumption varied among different types of NEVs. The energy consumption of BEV passenger cars and logistics vehicles in 2022 increased over 2021 (Fig. 1.13), mainly due to the increasing size and curb weight of BEV passenger cars. On the other hand, given the rapid market expansion of the medium- and heavy-duty trucks, the energy consumption of logistics vehicles showed a rising tendency. The average energy consumption of BEV buses in 2022 was 65.4 kWh/100 km, with a slight decrease from 2021.

Fig. 1.13

Average energy consumption of different types of BEVs over the years

The power consumption of Class A cars and BEV SUVs remained stable as a whole. By model and class of BEV passenger cars, the average energy consumption of Class-A cars and BEV SUVs in 2022 was 16.1 kWh/100 km and 18.8 kWh/100 km, respectively, basically the same as that in 2021. As for A00+A0 cars and cars of Class B and above, the power consumption in 2022 increased over 2021 (Fig. 1.14).

Fig. 1.14

Average energy consumption of BEV passenger cars of different classes over the years

With the rapid growth of vehicle holdings, the traffic-related air pollution (TRAP) has become a common problem in the process of urbanization, gradually becoming a public concern in the society. Vehicle electrification, as a key technical path to mitigate vehicle pollutions, features outstanding contributions to the reduction of pollutants such as O_X, CO, CO₂, and PM_2.5. This Report states a preliminary statistics of TRAP reductions from BEVs in each city of China in 2022, as shown Table 1.2, of which the first-tier and the emerging first-tier cities stayed in the forefront, showing significant outcome in pollutant reduction.

Table 1.2 Ranking of TRAP reduction from BEVs in TOP10 cities in 2022

As for the effectiveness of carbon emission reduction from NEVs in operation, as of December 31, 2022, a total of 12.073 million NEVs have been connected to the National Monitoring and Management Platform, which contributed a total reduction of 147 million tons of carbon emissions. The carbon emission reduction of NEVs in 2019 increased significantly. In 2021 and 2022, such number reached 36.939 million tons and 61.442 million tons, respectively, which effectively boosted the reduction of carbon emissions in the sector of road traffic.

1.3 NEV Operation Characteristics of China in 2021

For this Report, an overall assessment is made from the operation characteristics, charging and swapping characteristics, vehicle energy conservation and emission reduction effects, failure and safety evaluation, vehicle evaluation index, hydrogen FCEVs, etc.

1.3.1 NEV Operation Characteristics

As of December 31, 2022, the cumulative mileage covered by NEVs was up to 362.22 billion kilometers.

According to the data of National Monitoring and Management Platform, as of December 31, 2022, the cumulative mileage covered by NEVs was 362.22 billion kilometers. By the power type of vehicles, the cumulative mileage covered by BEVs was up to 312.65 billion kilometers, accounting for 84.22%, including 229.86 billion kilometers (63.5%) covered by BEV-passenger cars, 49.29 billion kilometers (13.6%) covered by PHEVs, and 290 million kilometers (0.1%) covered by hydrogen FCEVs under demonstration and promotion in scale (Fig. 1.18).

Fig. 1.18

Distribution of cumulative mileage of vehicles of different types (100,000,000 km, %)

Regarding application scenarios, the passenger cars are now leading the types of other application scenarios in the cumulative mileage due to scaled-up promotion. As of December 31, 2022, the cumulative mileage covered by private passenger cars was up to 1,212.3100 million kilometers, accounting for 33.5%; in the field of commercial vehicles, the cumulative mileage covered by buses and logistics vehicles stood out, 554.7 billion kilometers and 27.61 billion kilometers respectively, accounting for 15.3% and 7.6% respectively (Fig. 1.19).

Fig. 1.19

Distribution of cumulative mileage of vehicles in different application scenarios (100,000,000 km, %)

The average daily mileage in segments had somehow increased in 2022, with a significant increase in the average daily mileage of passenger cars.

The segments had been affected by the COVID-19 pandemic in the past three years, and the average daily mileage of vehicles had fluctuated to some extent. In 2022, the average daily mileage of private cars, taxis, cars for sharing, and buses decreased compared with 2021; while that of e-taxis, logistics vehicles and heavy-duty trucks increased over 2021 (Fig. 1.20).

Fig. 1.20

Remarks Heavy-duty trucks: vehicles with an inherent label of “Vehicle for special purpose” in the National Monitoring and Management Platform, with total mass ≥12,000 kg according to the Road Traffic Management—Types of Motor Vehicles (GA801.2014) of the Ministry of Public Security, selected as the research object of the heavy-duty truck segment

Average daily mileage of NEVs in key segments over the years.

The average monthly mileage of vehicles in segments had somehow decreased in 2022 over 2021, except e-taxis and heavy-duty trucks.

In 2022, the average monthly mileage of e-taxis and heavy-duty trucks increased year-on-year, reaching 4,309 and 2,473 km, respectively, up 1 and 2% year-on-year, respectively (Fig. 1.21). The average monthly mileage of other types decreased in 2022, mainly due to the COVID-19 that resulted in the decrease of frequencies and distances of travel. In the field of passenger cars, the average monthly mileage of private cars, taxis, and cars for sharing in 2022 was 731, 4,282, and 2,893 km, respectively, with a decrease of 20.7, 11.5, and 6.8%, respectively, compared with 2021; in the field of commercial vehicles, the average monthly mileage of NEV logistics vehicles and buses was 2,127 and 3,333 km, respectively, with an decrease of 6.3 and 10.2%, respectively, compared with 2021.

Fig. 1.21

Average monthly mileage of NEVs in key segments over the years

1.3.2 NEV Charging Characteristics

• (1) Characteristics of changes in vehicle charging methods

The proportion of fast charging times in each segment is increasing greatly, except for private cars.

By charging methods (Fig. 1.22), fast charging is dominant in all key segments except private cars. In 2022, the proportion of fast charging times for e-taxis, taxis, shared rental vehicles, logistics vehicles, and heavy-duty trucks were all above 70%. Specifically, regarding the changes in fast charging times in each segment, the fast charging times for e-taxis, taxis, cars for sharing, logistics vehicles, buses, and heavy-duty trucks increases over 2021. Mainly on slow charging and supplemented by fast charging, the private cars also saw rapid growth in the proportion of public fast charging times from 15.6% in 2020 to 20.6% in 2022 thanks to the fast-growing holdings in the market.

Fig. 1.22

Proportion of fast charging times in key segments over the years

• (2) Characteristics of charging duration

The charging duration of operating vehicles in the public sector in 2022 was basically within two hours, of which that of private cars was significantly longer than that of operating vehicles.

Private cars were mainly applicable to slow charging mode with an average charging duration of 3.5 h in 2022. The other operating passenger vehicles as well as commercial vehicles were principally dependent on fast charging, with an average charging duration for a single time falling within two hours (Fig. 1.23). Given the changes in the average single-time charging duration for NEVs in key segments, in the past two years, the charging duration of private cars and logistics vehicles were on a downward trend, while that of taxis, cars for sharing, buses, and heavy-duty trucks were under fluctuation. The average single-time charging duration in key segments is closely related to the proportion of fast charging times. It can be found from Figs. 1.23 and 1.24 that the higher the proportion of fast charging times, the shorter the average single-time charging duration.

Fig. 1.23

Average single-time charging duration in key segments over the years

Fig. 1.24

Relationship between the average single-time charging duration and the proportion of fast charging times in key segments over the years

• (3) Characteristics of vehicle charging times

Average monthly charging times of NEVs declined in 2022 in key segments, except for e-taxis and heavy-duty trucks.

In 2022, the average monthly charging times of ride-hailing NEVs and heavy-duty trucks increased year by year, with fast charging as the key stimulator. Average monthly charging times of NEVs declined in 2022 in key segments, except for e-taxis and heavy-duty trucks (Fig. 1.25). The average monthly charging times of taxis, buses, and cars for sharing decreased greatly, each above 20%, which was mainly affected by the COVID-19 that affected the traveling frequencies. The average monthly charging times of e-taxis grew steadily, basically once a day in 2021. The monthly charging times were closely related to the monthly mileage (Fig. 1.26), that is the higher the average monthly mileage, the more the average monthly charging times.

Fig. 1.25

Average monthly charging times in key segments over the years

Fig. 1.26

Relationship between monthly charging times and monthly mileages in key segments over the years

• (4) Initial state-of-charge (SOC) Characteristics

The average initial SOC of vehicle charging in all segments declined.

The average initial SOC of vehicle charging in all segments over the past three years stayed below 45%, while the charging initial SOC of new energy passenger cars by type fell year on year (Fig. 1.27), which indicated a significant consumption upgrade of new energy passenger cars, steady growth of driving range, and alleviating anxiety of users on power charging. In the field of commercial vehicles, the average initial SOC of logistics vehicles, buses, and heavy-duty trucks was far higher than that of passenger cars, which was closely related to the operation rules of commercial vehicles and the use of special charging piles.

Fig. 1.27

Average initial SOC in key segments over the years

• (5) Characteristics of typical cities in charging convenience

According to the statistics, the percentage of charging times within 500 m of the resident of a private passenger car was lower than that of a taxi or a bus. The average percentage of vehicle charging within 500 m of a commonly parked location at night for private cars in Beijing was only 56%, while that for taxis and buses within the same distance was 70 and 79%, respectively. If the distance was extended to within 1 km of a commonly parked location, the mean value of the percentage of charging times for private cars would soar to 70%. If the radius extended to 10 km, the mean value of the percentage of charging times for private passenger cars would reach 88%, surpassing that of taxis and buses, which was due to the wide range and type of charging piles available for private passenger cars, such as private and public piles near the usual place of residence (UPOR) and those in the second parking location (e.g., workplace). It was found from the statistics of charging convenience within a 500 m radius of the UPOR in different divisions of Beijing that the percentage of charging times of private passenger cars within such radius of UPOR in the core areas of Beijing was generally low, and the number of vehicles with charging operations accounted for 57.3%, while such percentage in Haidian District, Chaoyang District, Fengtai District, and Shijingshan District was slightly better, amounting to 65.8%. Compared with the aforesaid six districts, the charging times in suburban streets was generally higher than that in urban areas: The charging times of private passenger cars within a radius of 500 m of the UPOR reached 74.1%.

It is imperative to build more charging facilities in UPOR to improve the convenience of charging non-operating vehicles. Non-operating vehicles, represented by private passenger cars, took the dominant position among NEVs in China. In Beijing, compared with operating vehicles, non-operating vehicles feature a low demand for charging and replenishment and less charging times per month, making it more economical for “one pile for several vehicles while sharing”. In addition, non-operating vehicles have a higher demand for charging at nighttime and for charging convenience in UPOR, making it necessary to set more charging infrastructure near the frequently parking locations. In 2022, China renovated 52,500 old residential areas, benefiting 8.76 million households. From January to May 2022, 8,940 charging piles were installed amid the renovation of old urban residential areas. Compared with the suburban townships, the downtown is the core area where residential areas gather and where problems like the difficulty in electricity expansion and limited construction space exist. Therefore, it is relatively difficult to allocate piles with vehicles or set public piles in the residential areas, weakening the charging convenience in UPOR. The existing “pile to vehicle” mode cannot be easily accomplished and may intensify the conflicts of vehicle purchasers in pile configuration. For the lack of safety supervision, the problem of resource shortage incurred from the establishment of private piles will become increasingly prominent with the explosive growth of NEVs.

1.3.3 Operation Characteristics of BEVs of Battery-Swapping Type

Battery swapping has been promoted and applied for private cars, taxis, and heavy-duty trucks for a period of time towards more diversified application scenarios. Given the similar duration between battery swapping and fuel refilling, users’ anxiety in mileage and power replenishment can be effectively eliminated, making it in particular applicable to commercial vehicles in need of high operational efficiency. In 2022, the initial SOC of more than 50% of heavy-duty trucks was 20–30%, while the battery-swapping end SOC of more than 80% of BEV-heavy-duty trucks was above 90%. With a single-time battery swapping, the battery capacity would rise rapidly, and the mileage would be longer, which would help alleviate the mileage-related anxiety.

The heavy-duty trucks of battery-swapping type are mainly used for short and medium haul and closed transportation scenarios, hence a great potential for line haul to be tapped. By the average daily mileage, the average daily mileage of battery-swapping heavy-duty trucks mainly focuses on short haul or fixed-route transportation, while that of battery-swapping tractors and dump trucks was 208.9 and 183.7 km, respectively, lagging behind that of fuel heavy-duty trucks. In the medium and long run, the medium- and long-haul logistics on mainline are expected to be the next development scenario for battery-swapping heavy-duty trucks, which will further break down the barrier for the electrification of heavy-duty trucks. However, the mainline logistics relies on a sound network of battery-swapping facilities, which is expected to be a focus of the cities featuring batter-swapping facilities in the next step.

The improvement and standardization of battery-swapping infrastructure are of vital importance for the operational efficiency of battery-swapping vehicles. According to the operation characteristics of battery-swapping vehicles accessed the National Monitoring and Management Platform, following the continuous improvement of the battery-swapping infrastructure, the proportion of battery-swapping vehicles with actual swapping operation grows rapidly. In 2022, the actual battery-swapping rate of private cars, taxis, and cars for sharing exceeded 90%, and that of heavy-duty trucks was above 50%. According to the actual operation of such vehicles, there are still some problems to be solved urgently for the operation of battery-swapping stations and NEVs. For example, it is difficult to operate models of different brands in battery-swapping stations; a unified standard is in urgent need for battery packs and charging interfaces; and no unified management standards are available for the construction and operation of battery-swapping stations. It is, therefore, crucial to enhance the interchangeability of battery-swapping facilities in stations and on vehicles, which becomes the key for the operational efficiency of battery-swapping stations. At the window period for battery-swapping heavy-duty trucks, it is imperative to speed up the formulation and revision of standards to adapt to the rapid development of the battery-swapping industry. In addition, given the high cost in building battery-swapping stations, it is of great significance to make constant investment in the establishment and operation of the stations by means of finance or subsidy and further improve the operation management system for the purpose of reinforcing the operational efficiency of the battery swapping in the public sector.

1.3.4 Operation Characteristics of Plug-in Hybrid Electric Vehicles (PHEVs)

The market demand of PHEVs underwent rapid growth. A total of 2.298 million PHEVs had accessed the National Monitoring and Management Platform as of December 31, 2021, including 1.191 million PHEVs recorded throughout 2021, with a year-on-year growth of 147.8% Private purchase was the major source for such growth. PHEV-private cars accounted for 93.2% of the national total in 2022. From the perspective of the promotion structure at city level, the access proportion of PHEVs in first-tier cities keeps shrinking year by year, from 47.5% in 2019 to 21.5% in 2022. The market demand of new first-tier cities and below was rapidly released, with the access proportion expanding over the years. In 2022, the access volume of PHEV-private cars below first-tier cities accounted for 78.5% in 2022, with an increase of 26% points compared with 2019.

The proportion of mileage from PHEV in EV Mode kept expanding. From the perspective the operation mode of PHEVs in the past two years, the proportion of mileage from PHEVs in EV Mode kept increasing in 2022. In 2022, the mileage of private cars in EV Mode accounted for 47.7% of the total, up by 2.7 percentage points over 2021. With the increasing average driving range of PHEVs in EV Mode, users prefer the EV Mode for daily travel due to economic considerations.

1.4 Summary and Prospect

This Report, based on the real-time operation data of over 12.073 million NEVs on the National Monitoring and Management Platform, proposes relevant suggestions for the high-quality development of China's NEV industry upon in-depth analysis of the characteristics of the industrial development, the achievements of technological advancement, the operation of vehicles and charging characteristics and with regard to the current outcomes and problems of the industry, with an aim to provide reference for the policy-making authorities and relevant enterprises.

• (1) Give full play to the role of big data in NEV monitoring backed up by the National Monitoring and Management Platform to enhance NEV safety and security across the board.

China has built and been running a National Monitoring and Management Platform for NEVs and achieved initial results in quality management, safety control, and after-sales service on NEVs. The construction of safety management system for NEVs has been greatly accelerated, characterized by greater emphasis among all the enterprises concerned on the safety system by further optimizing the organization and management of the safety system, increasingly standardized product and quality management for NEVs, more systematic regulation over vehicle operation data, further improved safety risk prevention and control measures, and more targeted emergency and response mechanism against problems and accidents. With the rapid growth of the NEV holdings and the number of old NEVs, there are still some problems facing the NEV safety system construction, such as the lack of systematic planning, the imperfect specifications on battery, motor, and electronic control systems, the urgent need to improve the monitoring techniques and efficiency of platforms, the shortage of proactive investigation in after-sales services, and the incomplete mechanism of accident emergency response. Therefore, the industry is in urgent need to establish a new NEV safety management system covering all factors such as quality safety, operation safety, data safety, after-sales service, and accident handling for the purpose of overall reinforcement of NEV safety and high-quality development of the industry.

• (2) Accelerate the electrification of commercial vehicles by means of technological innovation and business model innovation

Electrification of commercial vehicles is of great significance, and the increase of penetration of vehicle electrification contributes more to carbon emission reduction. From the perspective of ministries and commissions, such pilot programs as cities with batter-swapping facilities and fuel cell demonstration city clusters will help advance the electrification in the public sector. From the perspective of local governments, it is necessary to combine technological innovation and business model innovation based on the top-level design and prospective strategies. For example, in the field of battery-swapping heavy-duty trucks, thanks to the constant innovation in intelligent battery swap, battery-swapping safety, battery storage, and energy management, the battery-swapping heavy-duty trucks are rapidly replacing the fuel cell heavy-duty trucks in the featured cities and those with steel mills, mines, and ports. The upstream and downstream participants on the industrial chain of battery-swapping heavy-duty trucks are now stepping up the businesses including battery asset management, battery safety supervision, and battery life assessment.

It is necessary to regularly monitor the health of power storage batteries based on the activity of commercial vehicles and upgrade new energy commercial vehicles in batches. In terms of buses, some of the new energy buses currently are close to or fall out of the warranty period, which impact the activity to some extent. According to the National Monitoring and Management Platform, the bus activity dropped from 89.6% in 2020 to 86.2% in 2022 due to the pandemic and the expiration of warranty period that resulted in the withdrawal. Considering the economic factors, local businesses should maintain effective monitoring of the health of power batteries in operating vehicles, including battery discharge capacity retention rate, energy efficiency retention rate, peak power retention rate, DC internal resistance change rate, and other aspects, in a bid to save financial funds, revitalize the operation of NEVs, and boost the upgrading and iteration of NEVs.

• (3) Step up the classification and guidance of charging infrastructure and strive to eradicate the contradiction between the rapid growth of NEVs and the sluggish development of charging convenience.

Compared with the rapid growth of NEV market demand, charging infrastructure construction still lags behind. Operating vehicles, including rental passenger cars, leased passenger cars, buses, and logistics vehicles featured longer average monthly mileage, frequent replenishment, high proportion of DC fast charging, and great demand for charging, making them the key segment for the promotion of electrification in the transportation sector. In early 2023, China launched a pilot program for full electrification of the public sector, further highlighting the importance of charging security. For buses, highway buses, and other vehicles subject to fixed routes, points, and stations, it is recommended that the proportion of DC fast charging piles be satisfied as per the planning of vehicle stations and the monthly charging demand of vehicles and other data; for rental passenger cars, leased passenger cars, logistics vehicles, and other vehicles not subject to fixed points and routes, it is recommended that, considering the charging demands in time and space, more piles be erected in the downtown areas, such as transportation hubs, business centers and other areas. Charging pile construction enterprises and power grid enterprises are advised to commence grid renovation projects (e.g., capacity expansion and line upgrading) in the aforesaid areas in advance as a support for the large-scale construction of public DC fast charging piles, thus boosting comprehensive electrification in the public sector. In the field of private cars, non-operating vehicles represented by private passenger cars takes the dominant position among NEVs in China. Efforts should be made to further improve charging infrastructure in UPOR to enhance the charging convenience of non-operating vehicles. For the old residential areas in cities, it is suggested to apply the mode of “sharing one pile for more cars adjacent” for pile establishment. With the rapid growth in the penetration rate of NEVs in rural areas, the adaptive transformation of the local power grid and the configuration and renovation of charging piles in rural areas are both expediting.

• (4) Speed up the construction of a new energy infrastructure system, continue to promote intelligent and orderly charging models, and strengthen energy interaction and vehicle-network collaboration.

Following the boosting traffic electrification, vehicles in the sector such as taxis and logistic vehicles are expected to see vigorous growth. Since such vehicles are more inclined to DC fast charging, and the power grid faces greater challenges on the load. For the special logistics vehicles with larger proportion among DC fast charging vehicles, the time of charging mainly starts from 16:00 to early morning (less at night), which fails to fully exert the effect of peak cut. For this purpose, it is suggested to promote the smart charging piles with intelligent and orderly charging mode, apply intelligent power regulation by the grid load in different regions and periods, reasonably increase the charging power at night, guide special logistics vehicles to charge at night, and lead more private passenger cars to charge at night via remote and scheduled charging, thus giving full play to the role of peak cut for NEVs. It is recommended to apply vehicle-station-network interaction demonstration project and business model, aggregate battery-swapping, energy storage, and adjustable heavy-duty truck power battery resources, consume energies locally, and advance the integrated development of energy, power, and transportation networks. In the effective application of peak cut, it is necessary to regulates power balance, reduce the pressure on the power grid, and drive market-oriented participation in regional power support.