A Chinese low-speed vehicle.
A research report recently published by ResearchInChina estimates that 302,000 low speed electric vehicles were produced in China last year, an increase of 46.6% from the year before. The market has grown rapidly since 2009 and is marked by manufacturers and intense competition. From the report:
At present, domestic LSEV producers concentrate their production bases mainly in Shandong Province, whose LSEV output rose from 16,300 in 2009 to 175,000 in 2013 at a CAGR of 81.0%. Key players there are Shifeng Group, Shandong Baoya New Energy Vehicle Co. Ltd., Shandong Tangjun Ouling Automobile Manufacture Co., Ltd., and so on. At the same time, spurred by the robust downstream demand for LSEV, Chery and BYD have also ventured into this field.
Comment: As we have noted previously, the LSVs in China and LSV compliant vehicles in the US are two different animals. Relatively speaking, the Chinese LSV market is largely unregulated so the quality and safety features of the LSVs are not the same. On the other hand a dynamic LSV market has arisen with a host of manufacturers and component suppliers. China is a very large market so even a niche market like LSVs can result in sizable market demand. The relatively inexpensive LSV option is appealing to those consumers who have some money but can’t afford a highway speed vehicle or don’t need that level of features and functionality. The Chinese government is also encouraging the adoption of alternative fuel vehicles.