What are New Energy Vehicles (NEVs?)
With the rapid growth in the number of automobiles, new energy vehicles are becoming one of the approaches to reducing pollutant emissions by reducing the auto industry's reliance on petroleum.
Because NEVs use electric-drive technologies to boost vehicle efficiency through regenerative braking, thus recapturing energy lost during braking, new energy vehicles (NEVs) typically use less fuel than comparable conventional vehicles. Both plug-in NEVs and all-electric vehicles (EVs), which are also known as battery electric vehicles, can run entirely on electricity.
A quick fact - According to the latest forecast from investment bank UBS, by 2025, 20% of all new cars sold globally will be NEVs. By 2030, that percentage will have risen to 40%, and by 2040, virtually every new car sold worldwide will be a NEV. We are going to see a big change in Auto Industry within a decade from now. The primary goal has been to establish NEVs as a global leader in electric vehicle (EV) technology, thereby contributing to energy independence and alleviating local air quality concerns.
New energy vehicles: Competitive forces and new battlegrounds
The new energy vehicle (NEV) industry experienced explosive growth in 2021. In the first ten months of the year, the NEV market penetration rate in China came in at nearly 13%, up 8% from 2020. This robust growth has made NEVs a tantalising proposition for three major players: traditional vehicle manufacturers, emerging NEV companies, and tech giants. These players are now competing on software R&D, new business models, and branding.
From January to October 2021, China’s NEV production reached 2.57 million units and sales reached 2.54 million units, a year-on-year increase of over 180%. Calculated by sales, the market penetration rate of NEVs reached 12.1%. Although adversely affected by COVID-19, production capacity, and the global chip shortage, the annual sales of NEVs were expected to exceed 3 million units and secure a market share of 13%-14% by the end of 2021.
China’s latest 15-year development plan (2021-2035) for the NEV industry has set a market penetration target of 40% by 2030. In order to meet this target, the NEV market share will have to grow at an average annual rate of nearly 3% over the next 9 years. Based on recent trends, this is not an insurmountable goal. Moreover, the NEV market is expected to reach a scale of trillions of RMB by that time. Furthermore, international analysts expect that the annual sales of electric vehicles will reach 28 million units by 2030 and 48 million by 2040, surpassing that of gasoline and diesel models.
New Energy Vehicle (NEV) Market
New energy vehicle (NEV) is term coined in China for electric vehicles, which includes vehicles that are either partially or fully powered by electricity. New energy vehicles are zero or low emission vehicles, which include battery operated electric vehicles, plug-in hybrid vehicles, hybrid vehicles and fuel-cell vehicles. NEVs do not emit exhaust gases, unlike conventional IC engine vehicles that emitted exhaust gases, comprising constitute carbon monoxide, hydrocarbons, particulates matter, and other highly harmful gases, which are hazardous and harmful to human health.
Growing environmental pollution from conventional vehicles is a major concern that is projected to boost the NEV market during the forecast period. Further, rising government support through incentives and subsidies offered on zero-emission vehicles and consistent increase in fuel prices are other factors that are projected to boost the NEV market during the forecast period. Additionally, governing bodies around are the world are forming alliances and enacting stringent emission norms to counter the temperature surge caused primarily due to vehicular emission. However, introduction of NEVs is projected to eliminate conventional vehicular pollution. These factors are expected to offer lucrative opportunities to the NEV market during the forecast period. Lack of recharging infrastructure facilities, especially in developing and underdeveloped countries, and its higher initial investment are major factors that are likely to restrain the NEV market during the forecast period.
The global NEV market can be segmented based on type, vehicle type, and geography. Based on type, the market can be divided into battery operated electric vehicle, plug-in hybrid vehicle, hybrid vehicle, and fuel-cell vehicle. Battery operated electric vehicle is a highly attractive segment of the market, and the adoption rate of these vehicles is significantly high across the globe. This is majorly attributed to government incentives and growing awareness toward adoption of zero-emission vehicles, as they do not emit any pollution. They utilize a battery as a power source to power the electric motors, which drive these vehicles. The battery operated electric vehicle segment is projected to dominate the market during the forecast period.
New Energy Vehicle (NEV) Market Insights and Overview Analysis
New energy vehicle (NEV) is term coined in China for electric vehicles, which includes vehicles that are either partially or fully powered by electricity. New energy vehicles are zero or low emission vehicles, which include battery operated electric vehicles, plug-in hybrid vehicles, hybrid vehicles and fuel-cell vehicles. NEVs do not emit exhaust gases, unlike conventional IC engine vehicles that emitted exhaust gases, comprising constitute carbon monoxide, hydrocarbons, particulates matter, and other highly harmful gases, which are hazardous and harmful to human health.
Growing environmental pollution from conventional vehicles is a major concern that is projected to boost the NEV market during the forecast period. Further, rising government support through incentives and subsidies offered on zero-emission vehicles and consistent increase in fuel prices are other factors that are projected to boost the NEV market during the forecast period. Additionally, governing bodies around are the world are forming alliances and enacting stringent emission norms to counter the temperature surge caused primarily due to vehicular emission.
However, introduction of NEVs is projected to eliminate conventional vehicular pollution. These factors are expected to offer lucrative opportunities to the NEV market during the forecast period. Lack of recharging infrastructure facilities, especially in developing and underdeveloped countries, and its higher initial investment are major factors that are likely to restrain the NEV market during the forecast period.
3 main NVH challenges for New Energy Vehicles
New Energy Vehicles (NEV) in general refers to the vehicles using cleaner energy, and the Chinese market defines NEV includes BEV (Battery electric vehicles, such as Tesla), PHEV (plug-in hybrid electric vehicles, such as Toyota Prius) and fuel cell electric vehicle (FCEV). NEV is the new generation of the automotive market and has aroused heated discussion as well as the attention of NVH development.
NVH, never heard of it? NVH stands for Noise, Vibration and Harshness, and is a measure of how pleasant a car or truck is experienced while driving. Noise, vibration and harshness are caused by the car’s mechanical and electrical systems, as well as the car’s interaction with road surfaces and its passage through the air. The main sources of NVH in a car are its engine, drivetrain and tyres, as well as the sound of airflow along its body.
While noise and vibration can be readily measured, harshness is a subjective quality and is measured either via “jury” evaluations or with analytical tools that can provide results reflecting human subjective impressions. Interior NVH deals with noise and vibration experienced by the occupants of the cabin, while exterior NVH is largely concerned with the noise radiated by the vehicle, and includes drive-by noise testing. It is an NVH engineer’s job to change the sound quality, by adding or subtracting particular harmonics, rather than making the vehicle quieter. Exactly why we sent our own NVH engineering consultant, Yuan Xie to The 3rd China NEV NVH Summit 2019 in Shangai.
New energy vehicles in China
NIO ES8 has battery swap technology
The stock of new energy vehicles in China is the world's largest, with cumulative sales of 5.5 million units through December 2020. These figures include passenger cars and heavy-duty commercial vehicles such buses and sanitation trucks, and only accounts for vehicles manufactured in the country. Of these, there were 4.9 million new energy vehicles in use at the end of 2020, accounting for 1.75% of all vehicles in circulation in China.
The Chinese government uses the term new energy vehicles (NEVs) to designate plug-in electric vehicles eligible for public subsidies, and includes only battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) and fuel cell electric vehicles (FCEV). Sales of new energy vehicles since 2011 passed the 500,000 unit milestone in March 2016, and the 1 million mark in early 2017, both, excluding imports. Cumulative sales of new energy passenger cars achieved the 500,000 unit milestone in September 2016, and 1 million by the end of 2017. Domestically produced passenger cars account for 96% of new energy car sales in China.
As of December 2020, China had the largest stock of highway legal plug-in passenger cars with over 4.5 million units, 42% of the global plug-in car fleet in use. China also dominates the plug-in light commercial vehicle and electric bus deployment, with its stock reaching over 500,000 buses in 2019, 98% of the global stock, and 247,500 electric light commercial vehicles, 65% of the global fleet. In addition, the country also leads sales of medium- and heavy duty electric trucks, with over 12,000 trucks sold, and nearly all battery electric.
