China’s Public Transportation System Rapidly Adopting Electric Vehicle Technology in Taxis to Reduce Dependency on Fossil Fuels
In the past, auto manufacturers in China had failed to acquire the necessary infrastructure for the incorporation of electric vehicle technology in commercial as well as public transport vehicles, and hence production of electric and hybrid vehicles suffered in the country. Moreover, there were only a few vendors that were qualified to provide electric batteries to the overall auto industry.
However, over the years, China has acknowledged the need to reduce air pollution and use electric vehicles to manage the country’s dependency on fossil fuels and environmental challenges resulting from them, such as carbon emissions. This factor has enabled increased adoption of new energy vehicles (NEV), which are now found in public transport systems such as taxis and buses, and commercial cars. New energy vehicles offer China enormous potential to reduce the country’s reliance on imported oil and gas and thus help achieve industry leadership across the globe.
China’s Electric Vehicle Industry yet to Gain Traction
The rapid adoption of electric vehicles and plug-in hybrids in public fleets could add to China’s strengths and put the electric vehicle industry back on the path to success. This will require better coordination and collaboration among automakers, suppliers, and the government of China.
Browse Research Report: http://www.transparencymarketresearch.com/china-nev-taxi-market.html
According to a publication issued in March 2015 by China’s Ministry of Transport (MOT), China will have 300,000 NEVs operational in urban logistics systems and urban public transport including taxis by 2020. 200,000 NEVs will be operational as public buses and 100,000 NEVs as taxis and other urban logistic vehicles. The country is majorly focusing on boosting its new energy vehicle industry and related supporting service facilities in the transport industry.
With the increasing number of favorable government incentive policies and tightening fuel standards, the NEV market will grow until the end of 2020.
NEV Taxi Market in China Picking up Pace
China’s NEV market is growing significantly, especially with NEV taxis expected to rapidly take over from conventional fuel taxis in the coming few years. From the perspective of taxi registrations, the sales volume of taxis has witnessed an increase in China. Market analysts at Transparency Market Research believe the market for NEV taxis will reach US$0.5 bn by the end of 2020. During the forecast period from 2014 to 2020, the China new energy vehicle (NEV) taxi market will exhibit a CAGR of 36.5%.
The long-range NEV taxi segment is expected to grow rapidly in the coming years. This is due to the improvements in technology used in EV batteries. On the other hand, short-range NEV taxis are preferred for travel within cities by regular commuters. As a result, this segment is also anticipated to grow swiftly until the end of the forecast period.
Browse Press Release: http://www.transparencymarketresearch.com/pressrelease/china-nev-taxi-market.htm
The NEV taxi markets in some of the most urbanized and developed regions in China, such as Shanghai, Beijing, and Guangdong, are experiencing high growth owing to the rising number of government NEV taxi fleets, advancing technology, and improving charging infrastructure. Growth of this market is also substantial across other regions such as Jilin, Taiwan, Zhejiang, and Anhui, due to support from local governments.