First of all, the new energy automotive motor market is huge. According to the data released by the China Association of Steam Turbine, the production of new energy vehicles in China reached 516,000 units in 2016 with a production of 794,000 units in 2017. It is estimated that in 2018 it will exceed 1 million units and by 2020 it will reach 2 million units. From the above data we can see that in the next few years, the market for new energy automotive motors is large enough.
Second, a variety of cooperation models will co-exist. At present, the new energy automotive industry continues to heat up. The national fuel consumption regulations in 2020 will urge China's vehicle manufacturers to increase investment in driving the motor industry and achieve their mastery of the industry by means of independent design or joint venture. At the same time, traditional drive motor companies to further stabilize the market share, will increase investment in the powertrain to improve the powertrain integrated design and control capabilities, sales through powertrain to increase sales. Therefore, the new energy automotive motor industry will show the coexistence of a variety of modes of development momentum.
Third, the manufacturing model shifts to mass production of a single product to reduce costs. From 2016 onwards, the state accelerates the speedup of subsidies for new energy vehicles, prompting the vehicle manufacturers to reduce the cost of purchasing components. Passenger demand from overseas business point of view, after 2020, the target cost of electric drive system for passenger cars is very low, even lower than the current domestic purchase of similar products in the procurement costs. In order to meet the market, the new energy automotive motor companies will shift from small to large batch flexible manufacturing models to single-product high-volume manufacturing model, into automated production lines and reduce product costs.