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Analysis: development trends of electric motors for NEVs in China

Nancy From Gasgoo| January 26 , 2018

China auto market news, China NEV electric motors,China Association of Automobile Manufacturers (CAAM)

Shanghai (Gasgoo)- With NEVs growing increasingly popular in China, the competition among electric motor companies becomes more and more intense. Since China has been the largest auto market and also the biggest NEV market worldwide, there is a great potential in China's electric motor market. So, what are the trends of the development of electric motors for NEVs?

First, NEV electric motor market poses great potential in China.

According to data released by China Association of Automobile Manufacturers (CAAM), the output of NEVs reached 517,000 units in 2016, and the 2017 NEV output reached 794,000 units. It is expected that the NEV output will exceed 1,000,000 units in 2018 and reach 2,000,000 units in 2020. From the abovementioned increments, the NEV electric motor market may have a great potential in the next few years.

Second, a variety of cooperation modes will co-exist in the market.

Due to the political incentives, Chinese carmakers will invest more heavily in the electric motors. Through self-designing or establishing JVs, they will master the technology of the electric motors. Meanwhile, traditional electric motor companies will also add investments in R&D of powertrains to further enhance their market shares. Therefore, in the future, the NEV electric motor industry will tend to have a variety of cooperation modes.

Third, electric motor companies reduce costs via producing one kind of products in large quantity.

China started to phase out NEV subsidies since 2016. This move has stimulated carmakers to reduce the purchasing costs of parts. After 2020, the expected costs of passenger vehicles’ electric motors will be extremely low and may even lower than that of the same products sold in China, according to the demands of foreign carmakers. To respond the market changes, the NEV electric motor companies will prefer to manufacture one single product in a large quantity, so that the cost can be reduced, compared with the former mode of manufacturing products in various kinds and small quantity.

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