Faster than flash – equalocean ways to make money in

Roughly ten years ago, when the electric vehicle (EV) industry started to gather its pace, a few could say that producer originated from an emerging ways to make money in country might be able to join the race. After a while, it was obvious that china takes it seriously, and the reality made a number of experts overhaul their ways to make money in original predictions. So-called "world’s factory" had always had a pretty poor performance in the automobile ways to make money in industry, then global macrotrends combined with several huge steps taken by ways to make money in chinese government made it possible for the country to jump ways to make money in into this prospective field.

Nowadays, when it comes to the battery electric vehicles (BEV), china is not only a taker possessing the world’s largest middle-class, but a giver as well. EV sector is shaping the competitive landscape in the domestic ways to make money in auto market ubiquitously. It is no great surprise that the local players fight ways to make money in brutally: potential is, indeed, tremendous. Bullish elephantine market

The statement "china’s economy is growing rapidly" became a truism a long time ago. The same can be applied to the boosting middle class ways to make money in in the country. No doubt that demand exists and springs up like mushrooms. However, subdued by international competition, supply within some underdeveloped industries is on the embryonic stage. EV sector in china turned to be an exception: it has been growing from zero, and after less than a dozen years found itself at ways to make money in the peak of productivity, generating a handful of new prominent startups that force incumbents ways to make money in to roll up their sleeves too.

Over the six years of development, the chinese new car makes have evidently increased their market ways to make money in share both in the national auto scene and among global ways to make money in competitors (in terms of a number of units produced). In 2017, almost half of all the battery electric vehicles produced worldwide ways to make money in were manufactured in china. 579,000 cars were sold in the country within the same ways to make money in year – the number grew 72.32% since 2016. Domestically, overall automobile sales just tumbled, facing the first negative market growth rate record in 28 ways to make money in years. So, this picture is even brighter: BEV sector’s six-year market share growth CAGR amounted to 88.6%.

Positive tendencies definitely do exist here. However, the fastly developing sector highly depends on the support provided ways to make money in by the state. The second crutch of the far-from-profitability enterprises is VC. New chinese EV manufacturers are like the ropewalkers remaining between ways to make money in risk-taking investors and stability-seeking government. The scene isn’t too tranquil: the rope is held by these two groups while the ways to make money in blood-thirsty traditional car makers wait below. Industry chronicles sowing (2001 – 2008)

The new energy vehicle research project was included in the ways to make money in national "863" major science and technology program in 2001. After six years of torpor and preparation, the chinese government published the "new energy vehicle production access management rules", which came into effect on november 1, 2007. Within this document, 20 new national standards for pure electric vehicles were promulgated. In 2008, the global economic crisis barely hindered china’s new energy vehicle market. Sales of passenger cars reached 899 units, while 1,536 commercial vehicles were sold in the same year. Cultivation (2009 – 2011)

China’s three ministries (ministry of science and technology, ministry of finance, ministry of industry and information technology) jointly with the national development and reform commission launched "new energy vehicle demonstration and application project" in 2009. Due to the small number of enterprises involved, high cost and relatively immature technology, results of the plan implementation didn’t meet expectations.

China increased financial support for new energy vehicles from 2010. In july, 25 cities across the country were given a "pilot" status. From 2001 to 2010, china’s R&D capability of new energy vehicles enlarged, this led to the formation of a relatively complete industrial ways to make money in layout. At the beijing international automotive exhibition in april 2010, a total of 95 different models of the new energy ways to make money in vehicles appeared, 35 of them were produced in china, including BYD, FAW, dongfeng and GAIC. Harvest (2012 – 2015)

The state council promulgated the "energy efficiency and new energy vehicle industry development plan (2012-2020)" in march 2012. This document can be regarded as the highest program document ways to make money in for the development of new energy vehicles in china. The technical path, industrial goals, infrastructure, fiscal subsidies and financial support were systematically planned.

The "regulations on the management of newly built pure electric passenger ways to make money in vehicle enterprises" issued in june 2015 provide favourable conditions for new vehicle ways to make money in manufacturers to enter the market. At the same time, the new "regulations" encourage companies to construct charging facilities by offering exemptions from ways to make money in purchase taxes and other policies to further promote implementation of ways to make money in electric (new energy) vehicles.

Under the policy guidance of a large number of subsidies, no restrictions on driving and no restrictions on the license ways to make money in plate, the explosive development of china’s new energy vehicles in 2014 – 2015 was directly caused. At the same time, some doubts popped up: large-scale subsidies sometimes don’t really stimulate the development of the industry. Another possible problem is a fraud. Selective breeding? (2016 – 2020)

Data published by the IEA show that new registrations of ways to make money in electric cars hit a record in 2016, with over 750,000 sales worldwide. With a 29% market share, norway has incontestably achieved the most successful deployment of electric ways to make money in cars in terms of market share, globally. It is followed by the netherlands, with a 6.4% EV market share, and sweden with 3.4%. China, france and the united kingdom all have electric car market ways to make money in share close to 1.5%. In 2016, china was by far the largest electric car market, accounting for more than 40% of the electric cars sold in the world, the number is more than two times bigger than in ways to make money in united states.

In 2016, the three ministries and commission mentioned above-issued documents stipulating subsidy standards for promotion and application of ways to make money in various models of new energy vehicles in 2016. The subsidies for 2017 – 2018 are set to be shrunk to 80% of 2016 level, as for the next two-year period, they will be dropped even more ( 60% of 2016 level). The main purpose of the program is to adjust subsidy ways to make money in policy and strictly investigate enterprises in order to detect and ways to make money in prevent possible fraud; moreover, the government is willing to establish new and improve existing ways to make money in standards and regulations, create access and punishment mechanisms. These changes may lead to the qualitative shift in terms ways to make money in of technological improvement, as well as maturity and market attractiveness of final products. New kids in town

Amount of money raised during the funding rounds is always ways to make money in a bellwether of how financial markets currently feel about a ways to make money in certain venture. Depending on the role a particular industry plays in society, some companies could be hyped by short-term trends and, consequently, overestimated. The last statement is perfectly shown by a number of ways to make money in the latest ipos.

We believe that the automobile market is what can’t be too overhyped due to several reasons: the final products are tangible, market demand is comparatively easy to assess, competitive landscape changes rather gradually. Thus, valuation is given by those conducting the pre-IPO rounds often defines a plausible range, and funding history in the auto industry indicates the real ways to make money in situation more or less precisely.

The five companies (NIO, xpeng motors, WM motor, CHJ and SITECH) gained more than USD 8 billion from investors over the ways to make money in last five years. NIO, xpeng motors (est. In 2014) and WM motor (est. In 2015) have already become unicorns (that is usual for the auto market, where production costs are high); CHJ and SITECH are close to the status. Important to stress that the players are scattered geographically: NIO and WM motor are registered in shanghai, while xpeng motors started its route in southern china, headquartered in guangzhou. CHJ and SITECH are based in the northern capital, for now, the two are comparatively small and mostly aimed at the ways to make money in neighbouring provinces as the end market. The ways these five companies walk through seem to be ways to make money in alike, so we took NIO as an early-comer to follow its track into the forest of the ways to make money in chinese auto market.

2018 was a turning point for the new energy vehicle ways to make money in development both in china and worldwide. NIO entered NASDAQ getting officially listed on the capital market ways to make money in on september 12. A few days later, BAIC BJEV was listed on the shanghai A-share market and renamed the company as BAIC bluepark (600733). Unlike NIO, BAIC BJEV is backed by the capital and industrial endorsement ways to make money in of its parent company BAIC group, as can be seen from their profile.

As for the increase in operating income, according to the company’s officials, it happened mainly due to the increase in the scale ways to make money in of business. In 2018, BAIC BIEV sold 158,000 new energy vehicles (annual increase of 53%), ranking first (for six consecutive years) in china in terms of pure electric vehicles sales and ways to make money in second in regard to sales of new energy vehicles.

As of september 2018, more than 60 new car manufacturers happened to be established ways to make money in in china, and only eight of them have passed the examination. Most of them have been shut out. While the qualification of car manufacturing is a dark cloud ways to make money in hanging over all new car manufacturers, it is a hurdle that must be overcome before mass ways to make money in production and delivery to users.

Future possible effect originated from the technology-related trends seems to be blurry as every minor step ways to make money in has the potential to become a game-changer. For instance, swiss startup innolith claimed to have invented a new type ways to make money in of battery that can power the electric car for 1,000 km without interruption. Supposedly, a breakthrough might happen at any of the three levels ways to make money in of the EV production process: upstream (motor raw materials, lithium battery), middle stream (battery, motor, electric control) and downstream (charging network, OEM). Autonomous driving in the next dimension to compete in. The global behemoth has been doing a good job here. Chinese new auto manufacturers are yet to catch up.

Regarding market rivalry, it is hard to predict where the future lies, but naming some core fields that define the shape of ways to make money in the battleground is essential. The indirect competition will still be largely represented by conventional ways to make money in automobile producers that may make some moves such as HEV ways to make money in production and pilot EV projects. "Hydrogen threat" is another potential force to influence. Some countries have already started betting on it excessively. At the moment, it is too costly. Given the fact that the source of energy driving a ways to make money in vehicle is the last thing mass consumers think of, this problem is crucial.

Do we expect them to conquer foreign markets? Barely. EVs don’t operate normally without the appropriate infrastructure that mostly refers ways to make money in to charging stations. So, talks about pouring into new countries in the short term ways to make money in are pointless. Though, countries like india might have a similar situation soon, facing ecological crisis. As chinese experience has shown, investment and state support are those helping hands that new ways to make money in EV enterprises have to rely upon.