Graphical new energy: How to view the development of China’s A00 automobile market in 2022

The use of A00-class models has been a basic link in the development of new energy vehicles in China over the past few years.

With the recent surge in battery costs, the total sales of A00-class new energy vehicles from January to May 2022 is about 390,360 units, a year-on-year increase of 53%; but in terms of market share, it accounts for 25% of the total sales of new energy passenger vehicles. %, the proportion dropped by 8 percentage points; from the perspective of the manufacturer’s layout, Wuling, Great Wall, and Chery used to occupy the market. The four companies of Jianghuai.

Today’s article also looks at the A00 market segment in the form of a diagram.

Judging from the current data, the growth rate of the A00-class new energy vehicle market in 2022 will definitely slow down. It is expected that the annual sales in 2022 will remain around 1 million units. The main reasons are as follows:

●In the case of batteries and various parts and components, the rising prices of raw materials (including metal and petroleum-derived industrial products) have squeezed the living space of A00-class models. Those who are willing to stick to it now are nothing more than other demands. It is not ruled out that there will be a sudden contraction of individual companies in September-October. Under the condition that the willingness of the supply side is affected, the adjustment method is mainly through the substantial adjustment of the price of the whole vehicle, which directly leads to the weakening of demand.

●With the increase of penetration rate, the demand for fuel consumption credits and new energy credits (dual credits) of car companies has declined. Since the profits from the transaction process cannot offset the losses at the car end, most car companies are not very enthusiastic about production.

Due to the relatively high oil price and the promotion of the popularity of new energy vehicles in the countryside due to the policy of new energy vehicles going to the countryside, there is still a rigid demand for this model due to its low price; however, the promotion strategy of car companies in this year’s model structure is not based on the running volume. , so this market has not effectively improved compared to last year. This year’s increase is mainly driven by A-level and DHT PHEVs.


▲Figure 1. Market allocation of A00 level in 2022

The main market brands of the A00 car in 2022 are also based on Wuling MiniEV, Chery eQ, QQ ice cream and Benben four popular models.


▲Figure 2. Explosive models on the market in 2022


Subdivision of the A00 model

According to the cruising range, A00 cars can also be subdivided into: models with a cruising range of 300 kilometers without subsidies, and models with subsidies above 300 kilometers, as shown in Figure 3 below:


▲Figure 3. Comparison of main cruising range in May 2022

In terms of battery configuration scheme, it is a 300-kilometer unsubsidized model. It is mainly equipped with batteries below 25-26kWh, and the main focus is on the 9-15kWh gear; and in the higher battery life configuration – the highest configuration is 45kWh, This is a play that sells super small steel cannons.


▲Figure 4. Comparison of A00-level cruising range and electricity

From the point of view of the electric drive system, the A00 models mainly have two types of power, 30-39kW and 50kW, which are actually to meet the basic requirements of the double 80.


▲Figure 5. The power situation of the A00 level

Among the A00-class cars, the distribution is also interesting to look at the market share of different companies. If it is further subdivided into annual models, we can see that no new models will be released in the basic A00 class in 2022, and car companies are obviously reluctant to put too many resources in this field.


▲Table 1. Model distribution of major brands


The selection of A00 level battery

Judging from the installed capacity of A00 car batteries, the main manufacturers are Guoxuan Hi-Tech, Ningde Times, DFD and AVIC, followed by several popular models – Honeycomb Energy and Ruipu Energy.


▲Figure 6. A00 level battery decomposition amount

In the shu data for the first five months of 2022, it is relatively easy to see the supporting relationship. For example, in the energy distribution of Hongguang MiniEV in the battery, around Guoxuan Hi-Tech, Ningde Times, AVIC Lithium, Ruipu Energy, Penghui Energy and Star. Constant power supply. Chery’s eQ1 was given to DFD and Ningde era, while Changan’s Benben mainly revolved around Ningde era and Guoxuan Hi-Tech, supplemented by AVIC. QQ ice cream includes Guoxuan Hi-Tech, Ningde Times and AVIC Lithium Battery.


▲Figure 7. Battery matching of major popular models in 2022

Summary: In the A00-level model market, there will be stable development until 2021, but as the cost problem becomes prominent, the proportion of this segment in the entire electric vehicle market will continue to decrease. I think it’s good to look at this trend, which means that new energy vehicles are developing into a healthier and more mature market.

Post time: Jun-27-2022