2011-05-18-奥纬咨询-The_Race_for_E-mobility_Will_Be_Decided_in_China_2页_206kb

Oliver Wyman Study on the Electric-Car Market in China: The Race for E-Mobility Will Be Decided in China

Core Content

The Oliver Wyman study "E-partnerships in China" highlights the significant growth and potential of the electric-car market in China, emphasizing that the future of e-mobility will be shaped by the country's strategic initiatives and collaborative efforts with international players.

China is rapidly becoming a global leader in the electric vehicle (EV) sector due to its strong government support, massive market potential, and favorable conditions for production and innovation. The Chinese government is heavily investing in R&D, infrastructure, and incentives to drive the adoption of electric cars, creating a highly attractive environment for both domestic and international stakeholders.

Main Points

• Government Support:

  • China is allocating substantial financial resources to the EV sector, including €11 million in the new five-year plan for R&D in hybrid and electric vehicles.
  • A €1.1 billion investment has enabled the annual production of 500,000 electric vehicles.
  • End-user incentives, such as government subsidies of up to €6,800 per vehicle, are stimulating demand.

• Market Potential:

  • China is projected to have around 2.7 million electric cars on the road by 2020, compared to 1 million in Germany.
  • The market is growing at a fast pace and is expected to continue expanding, making it a key battleground for e-mobility leadership.

• Infrastructure Development:

  • The government is investing in the necessary infrastructure to support the EV industry, including charging stations and supply chains.
  • This infrastructure development is critical for the long-term success of the electric-car market.

• Battery Technology:

  • Battery technology is a crucial component of the EV industry, and China is developing a promising domestic industry around it.
  • The favorable cost structure in China, including lower wages and raw material costs, is enhancing the competitiveness of EV production.

• Strategic Partnerships:

  • International automakers and suppliers must form strategic partnerships with Chinese companies to access the market and benefit from its growth.
  • Joint ventures, cooperations, and shareholdings are recommended to share financial risks and leverage each other's strengths.
  • The battery sector is particularly promising for such collaborations, as both parties can contribute expertise and resources.

Key Information

• Fast Action Required: The competition for the most attractive partners in China is intense, and international companies must act quickly to secure a strong position in the market.
• Caution and Targeting: While forming partnerships is essential, international firms should approach collaborations with caution and ensure that partnerships are well-considered and aligned with their strategic goals.
• Learning Curve: International companies will face a steep learning curve in the Chinese EV market, and they must be prepared to adapt and potentially make mistakes.
• Opportunities and Risks: The early phase of the EV market offers valuable opportunities for gaining experience and understanding, but also presents risks if partnerships are not carefully managed.

Conclusion

The Chinese electric-car market is poised for rapid growth and is set to become a dominant force in the global e-mobility landscape. International companies must strategically engage with Chinese partners to access this market, leverage its advantages, and minimize financial and technological risks. The success of these partnerships will play a critical role in determining the future of the electric-car industry worldwide.