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

Electric Vehicles Market – China January 2015

Executive Summary Market

Drivers & Challenges

Government Initiatives

Trends

 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%

Drivers:

Challenges:

• 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

 Fuel-efficient and New Energy Vehicles Program  “10 Cities 1,000 Vehicles” Program  Renewed And Enhanced Subsidies: Energy Efficient Vehicles  Infrastructure Development  Growing Foreign Participation  New Product Launches

 State-owned Enterprise Electrical Vehicle Industry Alliance National Renewable Energy Law  R&D Support Policies  Local Subsidies: Beijing and Shanghai

Major Players

Competition

Company A

Company B

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Company C

Company D

2

•Macro-Economic Indicators •Introduction •Market Overview  Global  China

•Direct Investment Scenario •Drivers & Challenges •Trends •Government Initiatives •Competitive Landscape •Mergers & Acquisitions •Strategic Recommendation •Appendix ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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SAMPLE

Economic Indicators (x/x) Lending Rate: Annual

2010

B

C

D

E

F

G

H

% Per Annum

a5 a4 USD bn

A

Trade Balance: Annual

x1

D A

B

C

a3 a2 a1

2011

x2

0 2010 2011 N.B.: 2009 2012-13 encompasses figure for Apr – Nov 2012

2012

FDI: Net Inflow 2012

x3 USD bn C

2013

a2

x4 B

a3

a4

a1

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

0

2009

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

2010

2011

2012

4

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

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 ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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Nissan Leaf is the market leader with twice as many sales as the Chevy Volt Top 21 Electrified Vehicles: Sales Wise (2013) 0

A

B

C

Nissan Leaf

D

Global Electric Vehicle Market – Overview

E a1

Chevy Volt

SAMPLE

Unit

a2

Toyota Prius PHEV

a3

Tesla Model S*

a4

Mitsubishi Outlander PHEV

y

a5

Renault Zoe

a6

Volvo V60 PHEV

a7

Ford C-Max Energi

a8

Ford Fusion Energi

a9

Renault Kangoo ZE

a10

Chery QQ3 EV

a11

Mitsubishi i

a12

Smart Fortwo ED

a13

Opel Ampera

a14

Renault Twizy

a15

Jac J3 EV*

a16

Ford Focus Electric

a17

BYD e6

a18

VW e-Up!

a19

Mitsubishi Minicab MiEV

a20

BMW i3

a21

x A

• • • •

B

XX XX XX XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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

SAMPLE

Electric vehicles – Overview

Market Size & Growth*

• 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

units a3

E X

D C B A

a1

0

2013

a2 2015e

2020e

Planned Target (2020e) Vehicle Type

EV Target (units)

New Energy Bus

XX

Energy Taxi

XX

Energy Delivery Vehicles

XX Note: Market Size and Growth in terms of sales

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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

SAMPLE

Market Snapshot EV Production – Market Size & Growth

EV Sales – Market Size & Growth

units

units

XX

C B A 0

a2 a1

B

a2

y3

2013

2014

A

B

y3

y2

2012

2013

2014

Plug in Hybrid Elctric Vehicles

EV Production Status: 2013 0

x3

x2

x1 y1

0

Pure Electric Vehicles

a3

a1

A

y2

2012

XX

x3

x2

x1 y1

C a3

EV Sales Status: 2013 C

0

A

B

C

units 2012

2013

a

2012

b

c

units

2013

d

Other Vehicles

a

b

c

d

Electric Vehicles

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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SAMPLE

Direct Investments – BYD Company Ltd.

CD Investments – Geography-wise

Total Investments – Sector-wise x4 x3

b1 x1 x1

x2 x3

a1

x4

x2

a1

CD Investments – Segment-wise

b1

Investment Snapshot • AA

0%

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

x

y

• AA • AA

• AA • AA • AA x

y

• AA

• AA Note: CD stands for Consumer Discretionary ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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

SAMPLE

Development of EV Battery Charging Infrastructure

Impact

• 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

EV Charging Stations: Growth

EV Charging Poles: Growth

No. of station No. of Poles

D x2 C

X

x

D C

B A

x2

E

B

x1

A

0

x1

0 Oct-13

2015e ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Oct-13

2015e 10

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

SAMPLE

Cost Constraints

Impact

• 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

Gasoline Price

Reduction in Cost of EV x1

USD/Gallon x

6 4

x2

x3

3,000 2,000

x1

x1 x2

2

1,000 x3

0

0

2010

x2

USD/kWh

2030e ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

2010

x1 x3

x2

2030e 11

Foreign players are launching many new models in the domestic market in partnership with local players New Product Launches Company A

• XX • XX

Company B

• XX • XX

Company C

• XX • XX

Company D

• XX • XX

Company E

• XX • XX

SAMPLE

X

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

SAMPLE

“10 Cities 1,000 Vehicles” Program • XX • XX • XX • XX

Changchun Hohhot Shenyang Tanshan Dalian Beijing Tianjin Jinan Zhengzhou Suzhou Nontong Chengdu Xiangfan Shanghai Hefei Hangzhou Chongqing Wuhan Nanchang Chang-Zhu-Tan Xiamen Kunming Guangzhou Shenzhen

XX XX XX

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

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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

SAMPLE

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

Criteria X

2013

2014

2015

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Types and Technology

Criteria X

X

X

2013-15 X

X

X

X

X

X

X

X

Note: Conversion Rate: 1 RMB: 0.16295 USD

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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Porter’s Five Forces Analysis

SAMPLE Impact X

Threat of New Entrants • XX

Impact X

Bargaining Power of Suppliers • XX

Impact X

Competitive Rivalry

Impact X

Bargaining Power of Buyers • XX

• XX

Impact X Threat of Substitutes • XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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Competitive Benchmarking (x/x) Public Trading Comparables (FY 2013)

SAMPLE

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 ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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Competitive Benchmarking (x/x)

SAMPLE

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

%

Net Margin

Gross Margin

30

c2

20

a3

10

a1

0

a2

b3 b1

c3

b2 c1

-10 Company A

Company B

Company C

• XX • XX • XX

• XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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SAMPLE

Public: Domestic Company – Company A Company Information Corporate Address

Locations – China

XX

Tel No.

XX

Fax No.

XX

Website

XX

Year of Incorporation

XX

Ticker Symbol

XX

Stock Exchange

XX ShenZhen

Products and Services Category

Headquarters Products/Services

Key People Automobile

Name

XX

Designation

XX

XX

XX

XX

XX

XX

XX

XX

Note: List of products is not exhaustive ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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SAMPLE

Public: Domestic Company – Company A Financial Snapshot Total Income USD mn 10,000 5,000

Total Income

382.7 7,176.7

Key Ratios Net Profit/Loss

Profit USD mn 400

219.6

7,485.1

7,228.5 13.1

0

2010

2011

Financial Summary

2012

8,355.2 91.4

0

2013

• 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 Market Capitalization (USD) Total Enterprise Value (USD) EPS (USD) PE Ratio (Absolute)

y-o-y change (2013-12)

2013

2012

2011

2010

1.37

2.28%

0.91%

3.32%

5.85%

0.91

1.09%

0.18%

2.93%

5.33%

1.00

1.65%

0.65%

3.66%

6.64%

1.89

2.23%

0.34%

5.77%

11.93%

2.07

3.32%

1.25%

4.86%

10.98%

-5.67

-8.61%

-2.94%

0.89

1.48%

0.58%

2.34%

5.14%

2.16

3.37%

1.22%

5.10%

11.12%

-1.54

86.91%

88.45%

85.17%

82.30%

0.17

8.21%

8.04%

8.48%

8.77%

0.25

1.80%

1.54%

1.11%

0.22%

10.35%

0.69

0.63

0.66

0.65

7.89%

0.17

0.16

0.17

0.11

29.44%

1.00

0.77

0.77

0.66

14.73%

0.50

0.44

0.43

0.40

115.79%

1.29

0.60

3.06

26.56

10.54%

1.46

1.32

1.51

1.88 0.87

Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets

-13.23% -27.34%

Cost Ratios

• 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

Indicators

200

Particulars

Value (29/10/2014) 17,498.3 mn 21,534.9 mn 0.04 182.89

Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

0.63%

0.64

0.63

0.69

-12.72%

1.66

1.90

2.03

2.52

16.54%

-3.72

-3.19

-3.91

-4.61

-3.45%

1.00

1.04

1.09

1.33

Improved

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

Decline

19

SAMPLE

Public: Domestic Company – Company A Key Business Segments RB and PB

Key Geographic Segments

Automobiles and Related Products

China

India

Europe

US

Others

MHC and AS 100%

10% 44%

50%

11% 42%

14% 38%

12% 39%

100% 50%

46%

46%

48%

49%

0%

0%

2010

2011

2012

2013

87%

10% 3% 2010

85%

85%

1% 3% 3% 4% 10% 2% 1% 7%

2011

2012

86%

2% 2% 4% 6% 2013

Business Highlights Description

News

Overview

• XX

Latest Developments

XX

Partnership

XX

Note: RB - Rechargeable Battery , PB - Photovoltaic Business, MHC - Mobile Handset Component, AS - Assembly Service, China includes Hong Kong, Macau and Taiwan) ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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SAMPLE

Public: Domestic Company – Company A

XX

XX

S

W

Strength

Weakness

O

T

Opportunity

Threat

XX

XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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SAMPLE

Private: Domestic Company – Company B Company Information Corporate Address

Locations – China

XX

Tel No.

XX

Fax No.

XX

Website

XX

Year of Incorporation

XX

Changchun

Products and Services Category

Headquarters

Products/Services

Key People Name

Automobiles

• XX

Designation

XX

XX

XX

XX

XX

XX

XX

XX

Note: List of products is not exhaustive ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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SAMPLE

Private: Domestic Company – Company B Business Highlights Description

News

Overview

• XX

Joint venture

• XX

Product Launch

• XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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SAMPLE

Private: Domestic Company – Company B

• XX

• XX

S

W

Strength

Weakness

O

T

Opportunity

Threat

XX

XX

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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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

ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT

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