Head Leopard Research Institute: Overview of China’s New Energy Vehicle Electronic Control Industry (Report attached)

Head Leopard Research Institute: Overview of China’s New Energy Vehicle Electronic Control Industry

report directory

1 Methodology 5

1.1 Research methods
1.2 Explanation of terms

2 Market overview of China’s new energy vehicle electronic control industry

2.1 Definition and classification of new energy vehicle electronic control.
2.2 The development history of China’s new energy vehicle electronic control industry.
2.3 Market Scale of China’s New Energy Vehicle Electronic Control Industry
2.4 Industry Chain Analysis of China’s New Energy Vehicle Electronic Control Industry

3 Analysis of the driving factors of China’s new energy vehicle electronic control industry

3.1 There is still broad space in the downstream market 9
3.2 Talent support promotes industry upgrading
3.3 Development of industry elements. 21

4 Analysis of Constraining Factors of China’s New Energy Vehicle Electronic Control Industry 23

4.2. Double squeeze of upstream and downstream, profit margins decline 4.
4.3 The construction of new energy vehicle charging facilities is not perfect.

5 China’s new energy vehicle electronic control industry policy and regulatory analysis

6 Analysis of the development trend of China’s new energy vehicle electronic control industry 30

6.1 The trend of localization of core components appears.
6.2 Deep binding between OEMs and third-party suppliers
6.3 The trend of integration appears.

7 Analysis of the competition pattern of China’s new energy vehicle electronic control industry.

7.1 Overview of the competitive landscape of China’s new energy vehicle electronic control industry.
7.2 Analysis of typical enterprises in China’s new energy vehicle electronic control industry.

report summary

Under the dual pressure of upstream price increases and downstream cost reductions, the profits of China’s new energy vehicle electronic control manufacturers have decreased. Under the circumstance that the gross profit margin of the industry is under pressure, the cooperation between OEMs and third-party suppliers will be further deepened. As the subsidy for new energy vehicles increases, the competition in the electronic control industry of new energy vehicles in China will become more intense, and the growth rate of the industry will slow down. Under the positive promotion of favorable policies such as “double points” replacing the subsidy policy and the localization trend of core components IGBT modules, it is expected that the scale of China’s new energy vehicle electronic control market will reach 36.20 billion yuan in 2023.

Hotspot 1: Although profits have declined, future prospects are still promising. <br /> China’s new energy vehicle electronic control industry is faced with the dual pressures of upstream price increases and downstream cost reductions, resulting in lower industry profits. However, driven by favorable policies such as “double credits”, China’s new energy vehicle market has a huge space for future development, which will greatly stimulate the demand for new energy vehicle electronic control and promote the development of China’s new energy vehicle electronic control industry.

Hotspot 2: The trend of localization of core components is emerging, and the international competitiveness of domestic brands will be further improved. <br /> IGBT modules, the core components of China’s new energy vehicle electronic control, are highly dependent on imports. However, driven by high profits, Chinese enterprises have begun to Layout the production of this product. China’s domestic IGBT modules have the advantages of low cost and short supply cycle. In the future, with the gradual improvement of related technologies and the gradual improvement of the industrial chain, imported IGBT modules will gradually be replaced by Chinese domestic IGBT modules.

Hot spot 3: There is no absolute leader in the industry, and the cooperation between third-party electronic control suppliers and vehicle companies will be further deepened <br /> There are as many as 100 participants in China’s new energy vehicle electronic control market. Industry concentration is low. Under the circumstance that the gross profit margin of the industry is under pressure, China’s professional new energy vehicle electronic control enterprises and vehicle enterprises have shown a trend of deep binding.

Featured Content

New energy vehicle electronic control consists of inverter (mainly composed of IGBT modules), controller (including control circuit board, drive circuit board, current sensor) and housing and other components (see Figure 2-1). The inverter converts the received DC power into three-phase AC power through pulse width modulation (PWM) to provide power for the motor of the new energy vehicle. The controller receives signals such as the motor speed of the new energy vehicle, and feeds the signal back to the meter. When the new energy vehicle brakes or accelerates, the inverter adjusts the frequency accordingly to achieve the purpose of shifting.

Head Leopard Research Institute: Overview of China's New Energy Vehicle Electronic Control Industry (Report attached)
Figure 2-1 New energy vehicle electronic control composition

Since 2001, China’s new energy vehicle electronic control industry has experienced the stages of start-up, slow development, explosive growth and declining profits (see Figure 2-3). China’s new energy vehicle electronic control industry started late, but benefited from the policy support of the downstream new energy vehicle industry, the market size has grown rapidly. Since 2017, due to the double impact of upstream price increases and downstream cost reductions, the profits of the new energy vehicle electronic control industry have declined, but thanks to the support of national policies such as “double points”, the industry prospects are still improving.

Head Leopard Research Institute: Overview of China's New Energy Vehicle Electronic Control Industry (Report attached)
Figure 2- 3 The development history of China’s new energy vehicle electronic control industry

Benefiting from the continuous expansion of terminal new energy vehicle demand and the support of relevant national policies, the market size of China’s new energy vehicle electronic control industry continues to grow. From 2014 to 2018, the market size of China’s new energy vehicle electronic control industry increased from 1.49 billion yuan to 17.23 billion yuan, with a compound annual growth rate of 84.4% (see Figure 2-4). The growth of the new energy vehicle electronic control market scale from 2014 to 2018 can be divided into two stages: (1) From 2014 to 2015, the explosive growth of the downstream new energy vehicle industry drove the market size of the new energy vehicle electronic control industry to soar, and the growth rate (2) From 2016 to 2018, due to the continuous decline in subsidies for new energy vehicles and the increase in the price of upstream raw materials, the growth of China’s new energy vehicle electronic control industry has slowed down, and the growth rate has remained in the range of 40.0% to 60.0% .

Head Leopard Research Institute: Overview of China's New Energy Vehicle Electronic Control Industry (Report attached)
Figure 2-4 Market size of China’s new energy vehicle electronic control industry (by demand), 2014-2023 forecast

The industrial chain of China’s new energy vehicle electronic control industry is divided into three parts: the upstream players are suppliers of raw materials such as IGBT modules; the main part of the midstream link is the new energy vehicle electronic control production enterprises; the downstream is the new energy vehicle enterprises, the application models Including passenger cars, commercial vehicles and special purpose vehicles (see Figure 2-5).

Head Leopard Research Institute: Overview of China's New Energy Vehicle Electronic Control Industry (Report attached)
Figure 2- 5 Industry Chain of China’s New Energy Vehicle Electronic Control Industry

New energy vehicle electronic control raw materials include IGBT modules, control circuit boards, drive circuit boards, motor controller housings, current sensors, connectors, gate] drive circuits, capacitors and other components (see Figure 2-6). Among them, IGBT modules account for 37% of the production cost of new energy vehicle electronic control products. The price of IGBT modules has a great impact on the electronic control of new energy vehicles. The bargaining power of IGBT module suppliers in the electronic control industry of new energy vehicles is high. At present, relevant Chinese manufacturers have not yet deployed the IGBT module industry. 80% of the IGBT modules in the electronic control production process of new energy vehicles need to be imported from overseas leading high-end semiconductor manufacturers such as Infineon, Mitsubishi, Fairchild, and Toshiba. Among them, INFINAIR Two companies, Ling and Mitsubishi, account for about 50% of the Chinese IGBT module market. The core raw materials of electric control of new energy vehicles are highly dependent on imports, and IGBT module suppliers are highly concentrated, and upstream IGBT module raw material companies have high bargaining power.

Head Leopard Research Institute: Overview of China's New Energy Vehicle Electronic Control Industry (Report attached)
Figure 2- 6 Production Cost of Electric Controls for New Energy Vehicles in China, 2018

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