According to annual reports released by companies from the NEV industry, 28 out of 35 have seen profits growing. The net profits of CEEMOTER and JIANGTE MOTER have even more than doubled. 

In 2016, the annual outputs of NEVs stood at 517,000 units with a growth of 51.7% year on year. Profits coming from NEVs have become a major source of income for auto companies. For example, 33.46% of BYD's total revenue of last year came from its NEVs.

The growth of NEVs also pushed up the demand for lithium batteries. As of the end of last year, power battery production capacity of OptimumNano has gone up to 12GWh, pushing up its annual net profit to 963 million yuan (139.9 million U.S. dollars).

Analysts say with the sliding subsidy scale for NEVs in 2017, the cost of its upstream battery industry will also increase.

But according to statistics given by China Association of Automobile Manufacturers, production and sales of NEVs in March were 33,000 and 31,100 units respectively, indicating the NEVs industry will grow steadily. 

 

Email: tanyuhan@nbd.com.cn

Editor: Tan Yuhan