It is critical for OEMs to start planning for the emergence of battery electric vehicles (BEVs) as this trend has the potential to have the biggest impact on aftersales in the short term. Global sales of BEVs reached more than one million units for the first time in 2017 increasing 54 per cent over 2016 and surpassed two million units in 2018.
In recent years, the explosive development of NEVs has led to increasing demand for NEV batteries, which has led to the rapid development of the NEV battery industry, resulting in increasing prices of raw materials manufactured and sold by raw material manufacturers, i.e., the upstream battery industry.
The available aftersales revenue on a three-, four- or five-year old and older EV will be considerably less than for an equivalent ICE (internal combustion engine) vehicle meaning that the potential revenue available will decline.
The development of the battery industry is crucial to the development of the whole NEV industry, and many countries have listed battery technologies as key targets for support at a national strategic level, which means that the NEV battery industry as a new industry has stepped on the stage of the development of this era. .
On December 19, 2016, the State Council released the “13th Five-Year Plan for the Development of National Strategic Emerging Industries”, in which the NEV industry was included in the development plan for strategic emerging industries . It shows that batteries, as the power source of NEVs, will be increasingly important.
As one of the core technologies of NEVs, power battery accounts for over 30% of the cost of NEVs, directly determines the development level and direction of NEVs. In 2020, the installed capacity of NEV batteries in China reached 63.3 GWh, and the market size reached 61.184 billion RMB, gaining support from many governments.