China’s new energy vehicle production in January dropped 52.3% YoY to 48,000 units: SMM

According to Shanghai Metals Market, China’s new energy vehicle production in January 2020 recorded a decline, as producers were shut during the Chinese New Year Holiday, while some of them delayed resumption due to an epidemic outbreak. Many even trimmed output because of continued market weakness.

SMM data shows about 48,000 NEVs produced in China obtained qualification certificates in January, down 52.3 per cent from a year ago. Passenger vehicles accounted for 43,000 units and buses 2,700 units. The rest 3,100 units were special vehicles.

SMM data reveals a drop in the installation of power batteries as well in January to 2.3 GWh, down 53.5 per cent year on year.

As the market since the second half of 2019 remained lacklustre, many electric vehicle battery producers in China began their Lunar New Year holiday in the early or middle of January.

Chinese EV and battery producers were in low gear, primarily due to the government’s decision of scaling back NEV subsidies. Coronavirus outbreak has been an add-on cause for the subdued NEV production.

According to SMM survey, most of the battery makers in China delayed rejoining work by one or two weeks amid the epidemic outbreak. Some factories in the top two EV battery producing hubs of south China’s Guangdong and east China’s Jiangsu will remain shut until they get further approval from authorities.

China’s Association of Automobile Manufacturers (CAAM) said last week that the virus has delivered a huge shock to the car industry. Demand for cars is likely to remain low as consumption is expected to see a brief growth after the epidemic is over.