Market Research Report : Electric vehicles market in china 2015 - Sample

January 2015

Electric Vehicles Market – China

2 ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Executive Summary

Market

Drivers & Challenges

Competition

China will become one of the largest market for electric vehicles in the coming future

Chinese government has set a target of selling x lakh electric vehicles by 20-- and y mn electric vehicles by 20--

Currently, Plug in Hybrid Vehicles account for 41% and pure electric vehicles account for 59%

Major Players

Company A Company B Company C Company D

Government Initiatives

Fuel-efficient and New Energy Vehicles Program

“10 Cities 1,000 Vehicles” Program

Renewed And Enhanced Subsidies: Energy Efficient Vehicles

Drivers: Challenges:

Infrastructure Development

Growing Foreign Participation

New Product Launches

Trends

• Rising Population and Transport Demand

• Automotive Industry Growth

• Increased Government Participation

• Foreign Dependence for Crude Oil

• Development of EV Battery Charging Infrastructure

• Reduction in CO2 Emission

• Low Vehicle Performance

• Battery Life Cycle

• Cost Constraints

State-owned Enterprise Electrical Vehicle Industry Alliance National Renewable Energy Law

R&D Support Policies

Local Subsidies: Beijing and Shanghai


•Macro-Economic Indicators

•Introduction

•Market Overview

Global

China

•Direct Investment Scenario

•Drivers & Challenges

•Trends

•Government Initiatives

•Competitive Landscape

•Mergers & Acquisitions

•Strategic Recommendation

•Appendix


SAMPLE Economic Indicators (x/x)

Lending Rate: Annual

H G F E D C B A %

Per Annum

2013 x4

2012 x3

2011 x2

2010 x1

Trade Balance: Annual

Commercial Bank Rates: Key Lending Rates as Prescribed by RBI (All Commercial Banks including SBI) - Minimum Rate General

N.B.: 2012-13 encompasses figure for Apr – Nov 2012

FDI: Net Inflow

2009 2010 2011 2012

a5

a4

a3

a2

a1

0

D

C B A

USD

bn

2009 2010 2011 2012

B

C

A

0

USD bn

a4 a3

a2

a1


SAMPLE Performance Indices: EV Batteries and Applications to EVs

Battery Type Lithium iron phosphate Lead acid battery NiMH battery Lithium-ion battery

Specific Type X X X X

A X X X X

A X X X X

A X X X X

A X X X X

A X X X X

A X X X X

A X X X X

A X X X X

A X X X X

Among these four battery types, the lithium iron phosphate battery named ET-Power is of good dynamic performance and safety function

There are four types of battery mainly used in electric vehicle (EV) industry


SAMPLE Nissan Leaf is the market leader with twice as many sales as the Chevy Volt

Top 21 Electrified Vehicles: Sales Wise (2013)

0 E D C B A

Unit

BMW i3 a21

Mitsubishi Minicab MiEV a20

VW e-Up! a19

BYD e6 a18

Ford Focus Electric a17

Jac J3 EV* a16

Renault Twizy a15

Opel Ampera a14

Smart Fortwo ED a13

Mitsubishi i a12

Chery QQ3 EV a11

Renault Kangoo ZE a10

Ford Fusion Energi a9

Ford C-Max Energi a8

Volvo V60 PHEV a7

Renault Zoe a6

Mitsubishi Outlander PHEV a5

Tesla Model S* a4

Toyota Prius PHEV a3

Chevy Volt a2

Nissan Leaf a1

Global Electric Vehicle Market – Overview

• XX • XX • XX • XX

x

y

A B


SAMPLE Led by government support, EV sales in China is expected to reach xx mn units by 20--

• China will become one of the largest market for

electric vehicles in the coming five years as

government promotes clean energy cars and builds

the necessary infrastructure for the same

• The Government of China has set a target of selling x

lakh electric vehicles by 20-- and y mn electric

vehicles by 20--

• Government is actively promoting the use of electric

vehicles to reduce pollution in smog-choked cities as

well as reduce the oil imports at the same time

• Chinese government is providing subsidies up to USD

xx on electric as well as hybrid electric vehicles

• The government has also committed to spend

around USD x bn over the next decade for the

development of this segment

• Currently, Plug in Hybrid Vehicles account for x% and

pure electric vehicles account for y%

• In the coming future, Plug in Hybrid Cars will account

for approximately x% of private new energy vehicles

Electric vehicles – Overview

Note: Market Size and Growth in terms of sales

Market Size & Growth*

C

B

A

D

E

0

X

2020e

a3

2015e

a2

2013

a1

units

Vehicle Type EV Target (units)

New Energy Bus XX

Energy Taxi XX

Energy Delivery Vehicles

XX

Planned Target (2020e)


SAMPLE In 2013, EV market accounts for only x% of the overall domestic automobile market in terms of sales and production

EV Production – Market Size & Growth EV Sales – Market Size & Growth

C

B

A

0

units

XX

2014

a3

y3

x3

2013

a2

y2

x2

2012

a1

y1

x1

Plug in Hybrid Elctric Vehicles Pure Electric Vehicles

C

B

A

0

units

XX

2014

a3

y3

x3

2013

a2

y2

x2

2012

a1

y1

x1

EV Production Status: 2013 EV Sales Status: 2013

C B A 0

units

2013 c d

2012 a b

C B A 0

units

d

2012 a b

2013 c

Electric Vehicles Other Vehicles

Market Snapshot

9

SAMPLE Direct Investments – BYD Company Ltd.

x4

x3

x2

x1

Total Investments – Sector-wise CD Investments – Geography-wise

x4

x3

x2

x1

CD Investments – Segment-wise

0% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

x y

b1

a1

b1 a1

y x

Investment Snapshot

• AA

• AA

• AA

• AA

• AA

• AA

• AA

• AA Note: CD stands for Consumer Discretionary

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT


SAMPLE Improved EV charging facilities in the country will act as a major growth driver

• Around x major cities across China are planning several expansion plans to increase the total number of electric vehicle charging stations to aa by 2015

The country is also planning to increase the number of charging poles from xx in Oct 2013 to yy in 2015

• As of October 2013, there were around aa charging poles in Beijing and there were around bb charging poles in Shanghai at the end of 2012

Most of the charging poles were installed at gas stations, car dealerships, parking lots and universities

By 2015, Beijing is planning to build five charging stations and aa charging poles and Shanghai is planning to build bb new charging poles and one hydrogen station

Development of EV Battery Charging Infrastructure

D

C

B

A

0

No. of station

X

2015e

x2

Oct-13

x1

C

E

D

B

A

0

No. of Poles

x

2015e

x2

Oct-13

x1

Impact

EV Charging Stations: Growth EV Charging Poles: Growth


SAMPLE High cost of electric vehicles vis-à-vis gasoline vehicles to emerge as a major challenge to the Chinese EV market

• Cost of electric vehicles is higher than the traditional gasoline counterparts, creating a major challenge for the growth of EV in China

• Lithium cell accounts for about half of an EV total cost, which makes EV more expensive than traditional gasoline driven cars

• Gasoline price is expected to reach USD aa/ Gallon growing with a CAGR of x% during 20-----

• However Electric vehicles and PHEV’s are not expected to be competitive with gasoline driven vehicles without the aid of government subsidies

• High cost of ownership of electric vehicles is expected to emerge as one of the major challenges to the growth of the EV market in China

Cost Constraints

Reduction in Cost of EV Gasoline Price

0

2

4

6 x

2030e

x2

2010

x1

USD/Gallon

0

1,000

2,000

3,000

USD/kWh

2030e

x3 x2

x1

2010

x3

x2

x1

x2 x3 x1

Impact


SAMPLE Foreign players are launching many new models in the domestic market in partnership with local players

X

New Product Launches

Company B

Company E

• XX • XX

• XX • XX

Company A • XX • XX

Company D • XX • XX

Company C • XX • XX


SAMPLE In 2009, China launched the “10 cities 1,000 vehicles” program to promote the development of EV

• XX

• XX

• XX

• XX

“10 Cities 1,000 Vehicles” Program

Changchun

Dalian Beijing

Jinan

Shanghai Hangzhou

Hefei Wuhan Chongqing

Chang-Zhu-Tan

Kunming

Shenzhen

Nanchang

Shenyang Hohhot

Nontong Xiangfan Chengdu

Tanshan

Tianjin Zhengzhou

Suzhou

Xiamen

Guangzhou

Haikou

Note: Chang-Zhu-Tan refers to Changsha, Zhuzhou and Xiangtan economic zone

XX

XX

XX


SAMPLE Chinese government is offering various fiscal incentives to complement mandatory vehicle efficiency standards

Renewed And Enhanced Subsidies: Energy Efficient Vehicles

MIT, MOF, NDRC and Ministry of Science and Technology has renewed the energy saving car policy • The new renewed policy is effective from October 1, 2013 and valid till 2015

Types and Technology Criteria 2013 2014 2015

X

X X X X X

X

X X X X

X X X X

X X X X

Central Government Subsidies for various types of vehicles (2013-15)

Types and Technology Criteria 2013-15

X

X X X

X

X X

X X

X X

Note: Conversion Rate: 1 RMB: 0.16295 USD


SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry

• XX

Bargaining Power of Buyers

• XX

Threat of New Entrants

• XX

Impact X

Impact X

Impact X

Bargaining Power of Suppliers

• XX

Impact X

Threat of Substitutes

• XX

Impact X


SAMPLE Public Trading Comparables (FY 2013)

Company A Company B Company C

Market Capitalization (USD mn) X X X

Share Price (USD) X X X

EV/EBITDA (x) X X X

EV/Revenue (x) X X X

PE Ratio X X X

Note: Major 3 Public companies based on the Market Capitalization; Market Capitalization, Share Price is as of 27/09/2014 and PE ratio is as of 29/09/2014

Competitive Benchmarking (x/x)


SAMPLE Key Ratios of Major 3 Companies – Operational Basis (FY 2013) (x/x)

-10

0

10

20

30

Company C

c3

c2

c1

Company B

b3

b2 b1

Company A

a3

a2

%

a1

Operating Margin Gross Margin Net Margin

• XX

• XX

• XX

• XX

Competitive Benchmarking (x/x)


SAMPLE Public: Domestic Company – Company A

Key People

Products and Services

Company Information Locations – China

Corporate Address XX

Tel No. XX

Fax No. XX

Website XX

Year of Incorporation XX

Ticker Symbol XX

Stock Exchange XX

Name Designation

XX XX

XX XX

XX XX

XX XX

Headquarters

Category Products/Services

Automobile XX

ShenZhen

Note: List of products is not exhaustive


SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of USD 91.4 mn in FY 2013, as compared to a net profit of USD 13.1 mn in FY 2012

• The company reported total Income of USD 8,355.2 mn in FY 2013, registering an increase of 15.6 % over FY 2012

• The company earned an operating margin of 2.3 % in FY 2013 an increase of 1.4 percentage points over FY 2012

• The company reported debt to equity ratio of 1 in FY 2013, an increase of 29.4 % over FY 2012

Financial Summary

Net Profit/Loss Total Income

219.6

0

5,000

10,000

0

200

400

Profit USD mn

Total Income USD mn

2013

91.4 7,228.5

2011

8,355.2

2012

13.1

7,485.1

2010

382.7

7,176.7

Indicators Value (29/10/2014) Market Capitalization (USD) 17,498.3 mn

Total Enterprise Value (USD) 21,534.9 mn

EPS (USD) 0.04

PE Ratio (Absolute) 182.89

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios

Operating Margin 1.37 2.28% 0.91% 3.32% 5.85%

Net Margin 0.91 1.09% 0.18% 2.93% 5.33%

Profit Before Tax Margin 1.00 1.65% 0.65% 3.66% 6.64%

Return on Equity 1.89 2.23% 0.34% 5.77% 11.93%

Return on Capital Employed 2.07 3.32% 1.25% 4.86% 10.98%

Return on Working Capital -5.67 -8.61% -2.94% -13.23% -27.34%

Return on Assets 0.89 1.48% 0.58% 2.34% 5.14%

Return on Fixed Assets 2.16 3.37% 1.22% 5.10% 11.12%

Cost Ratios

Operating costs (% of Sales) -1.54 86.91% 88.45% 85.17% 82.30%

Administration costs (% of Sales)

0.17 8.21% 8.04% 8.48% 8.77%

Interest costs (% of Sales) 0.25 1.80% 1.54% 1.11% 0.22%

Liquidity Ratios

Current Ratio 10.35% 0.69 0.63 0.66 0.65

Cash Ratio 7.89% 0.17 0.16 0.17 0.11

Leverage Ratios

Debt to Equity Ratio 29.44% 1.00 0.77 0.77 0.66

Debt to Capital Ratio 14.73% 0.50 0.44 0.43 0.40

Interest Coverage Ratio 115.79% 1.29 0.60 3.06 26.56

Efficiency Ratios

Fixed Asset Turnover 10.54% 1.46 1.32 1.51 1.88

Asset Turnover 0.63% 0.64 0.63 0.69 0.87

Current Asset Turnover -12.72% 1.66 1.90 2.03 2.52

Working Capital Turnover 16.54% -3.72 -3.19 -3.91 -4.61

Capital Employed Turnover -3.45% 1.00 1.04 1.09 1.33

Public: Domestic Company – Company A

Improved Decline


SAMPLE

87% 85% 85% 86%

10% 4%2%3%1%

3%0%

50%

100%

2013

6% 2% 2%

2012

7% 4%

2011

1% 3%

2010

10% 46% 46% 48% 49%

44% 42% 38% 39%

0%

50%

100%

2013

12%

2012

14%

2011

11%

2010

10%

RB and PB Automobiles and Related Products

MHC and AS

Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview • XX

Latest Developments XX

Partnership XX


Others US Europe India China

Note: RB - Rechargeable Battery , PB - Photovoltaic Business, MHC - Mobile Handset Component, AS - Assembly Service, China includes Hong Kong, Macau and Taiwan)


SAMPLE

XX XX

XX XX

T O

W S Strength Weakness

Opportunity Threat



SAMPLE Private: Domestic Company – Company B

Key People

Products and Services

Company Information Locations – China

Corporate Address XX

Tel No. XX

Fax No. XX

Website XX

Year of Incorporation XX

Name Designation

XX XX

XX XX

XX XX

XX XX

Headquarters Category Products/Services

Automobiles • XX

Changchun

Note: List of products is not exhaustive


SAMPLE Business Highlights

Description News

Overview • XX

Joint venture • XX

Product Launch • XX

Private: Domestic Company – Company B


SAMPLE

• XX • XX

XX XX

T O

W S Strength Weakness

Opportunity Threat

Private: Domestic Company – Company B


SAMPLE Mergers & Acquisitions (M&A)/Private Placement (x/x)

Announced Date

Closed Date Transaction

Type Target Buyer/Investors Sellers

Deal Size (USD mn)

x x x x x x x

x x x x x x x

x x x x x x x

x x x x x x x

x x x x x x x

x x x x x x x


Thank you for the attention

About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives.

The Electric Vehicle Market – China report is a part of Netscribes’ Automotive and Logistics Industry Series. For more detailed information or customized research requirements please contact:

Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.

Phone: +91 22 4098 7600 E-Mail: [email protected]

http://www.netscribes.com/

mailto:[email protected]

Market Research Report : Electric vehicles market in china 2015 - Sample

Automotive

Transcript of Market Research Report : Electric vehicles market in china 2015 - Sample