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
ELECTRIC VEHICLES MARKET IN CHINA 2015.PPT
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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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