Chinese car battery market "wolf came"


While China is also sceptical about the development of electric vehicles, international parts and components, especially battery suppliers, are already eager to enter China and begin market deployment.

Recently, LG Chem and SAIC Motor signed a battery supply contract. So far, three Chinese car companies have handed over the “big cake” of battery supply to LG Chemicals. SAIC, FAW, and Chang'an have sold a total of 1.24 million passenger cars in China, accounting for 60% of the market. The amount of battery orders that may be brought in the future will also be very alarming. In addition, LG Chemical also plans to supply batteries to hybrid vehicles from the Automotive Group in the future. In view of its effectiveness, LG Chemical can be said to be a step ahead and has taken an advantageous position in the strategy of entering the Chinese market. From the battery outlet to the localization of battery production, it can be seen from the dynamics of LG Chemicals in the past two years that the speed of its Chinese market has significantly accelerated.

With the acceleration of the growth rate of global electric vehicles, the demand for batteries is also unstoppable. The consulting firm Navigant Research pointed out that in 2013, the global lithium battery market for passenger cars will be 3.2 billion U.S. dollars, and in 2023 it will be as high as 24.1 billion U.S. dollars. On the other hand, whether it is technology itself, or for security reasons, or just psychological factors, car companies are often more willing to choose foreign battery suppliers, especially battery manufacturers have experience in overseas models with batteries, LG Chemicals This is a typical example. Although Chevrolet Vollanda, which was equipped with LG Chemical Battery, had a fire accident in 2011, it has been calm in recent years, and Wollland’s sales have also gradually increased, ranking among the highest in the global electric vehicle sales charts. With the success of Wolanda, LG Chemicals further consolidated its position in the field of vehicle batteries and gradually extended its reach to the world, including China.

The market consultancy IHS predicts that, thanks to strong government support, sales in China's electric and hybrid vehicles market will increase from 33,000 units in 2013 to 655,000 units in 2020, a nearly 20-fold increase. Not only LG Chemicals, Samsung SDI, SKInnovation, Japan's Panasonic, Germany Continental Group also saw a huge opportunity in the Chinese battery market, of course, will not easily let go. Through localized production, reducing costs and obtaining local government support has become an idiomatic model. In recent years, the news that foreign battery manufacturers put into operation in China has continued to be reported to the press, giving Chinese battery manufacturers greater pressure.

Under the active attack of overseas companies, China's battery market has gradually been eroded, leaving Chinese battery manufacturers with little time to upgrade their technology and output. It is imperative to think carefully about countermeasures.



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