China's Electric Vehicle Battery Usage Declines for Six Consecutive Months

[Asia Economy Reporter Hwang Yoon-joo] The usage of batteries installed in electric vehicles (EV, PHEV, HEV) in China has decreased for six consecutive months since August last year. This is attributed to the reduced subsidies, which lowered price competitiveness, and the sharp decline in electric vehicle demand due to the impact of the novel coronavirus (COVID-19).

According to SNE Research, the total battery energy capacity of electric vehicles registered in China in January this year was 2.3 GWh, a sharp drop of 55.4% compared to the same month last year. The usage of electric vehicle batteries in China has been declining in double digits since August last year.

As demand for electric vehicles, mainly battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV), sharply decreased, the usage of electric vehicle batteries also declined. In January, electric vehicle sales in China fell by 42.5% year-on-year to 75,000 units, marking a decline for seven consecutive months.

This is due to the continued sharp decrease in sales of BEV and PHEV models, which have higher battery capacity per unit. Although HEVs have maintained steady double-digit growth, their battery capacity per unit is significantly lower than that of BEVs and PHEVs, limiting their ability to offset the local market downturn.

The slump in the Chinese electric vehicle market has not been resolved this year either. The demand contraction caused by the COVID-19 situation since January is also considered a negative factor. The industry expects that the impact of the demand contraction will continue for some time, making it unlikely that electric vehicle battery demand in China will increase in the short term.

This content was produced with the assistance of AI translation services.