China Electric Bus Market Set to Exhibit Tremendous Growth in Coming Years

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2022
China Electric Bus Market Overview, Emerging
Trends, Key Players and Future Scope
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On account of its high level of industrialization
and vast population, China is the largest
greenhouse gas (GHG) emitter in the world. As per
the International Energy Agency (IEA), the
emissions growth in 2018 was largely driven by
non-OECD countries, led by China and India.,
reflecting why the country is now trying to bring
a major reduction in these emissions. As a result
of the continued government efforts, China has
also become one of the largest producers and
consumers of renewable energy! Consistent with
its efforts to clean up the countrys air, the
Peoples government has been offering strong
support to electric vehicles (EVs) for quite some
time. This is why PS Intelligence says that the
Chinese electric bus market will see176.4
thousand unit sales in 2025 compared to 104.3
thousand units in 2017, with the number
increasing at an 8.6 CAGR between 2018 and 2025
(forecast period). China is already the largest
EV user in the world, with the IEA saying in the
context of electric buses for 2019 that About
half a million electric buses are in circulation,
most of which are in China.
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Even though China has reduced EV subsidies, the
Chinese electric bus market is unlikely to
witness any major impact, as most of the buses
are run by government agencies, for whom
subsidies do not matter anyway. In addition, the
sale of electric buses is expected to pick up
faster than those of electric cars and
two-wheelers, as, compared to millions of
individual vehicle owners, merely hundreds of
commercial vehicle fleet owners have to be
convinced to switch to electric
mobility. Moreover, as EV subsidies are majorly
offered according to their technical
specifications and performance parameters, the
increase in the number of parameters considered
will positively impact electric bus sales. Apart
from adding to the list of the parameters, many
of the parameters initially considered for
offering subsidies were made minimum
requirements, which automatically made more
electric bus models eligible for financial
support in China.
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Another key driving factor for the Chinese
electric bus market is the constant decrease in
the price of the battery. Between 2012 and 2016,
the purchase price for large lithium-ion battery
orders dropped from 540 per kilowatt-hour (kWh)
to 140/kWh. Since the battery cost accounts for
almost 40 of the entire buss, this decline will
be vital for increasing the latters adoption in
China. Additionally, as battery companies
increase their production capacity and achieve
economies of scale, they will be able to further
reduce the price of such components. Among
plug-in hybrid electric buses (PHEB), battery
electric buses (BEB), and hybrid electric buses
(HEB), BEBs are the most popular in the country.
Because they only have an electric motor for
propulsion, they are operationally emission-free,
therefore receive the strongest support from the
government. These buses can be powered by
numerous types of batteries, such as lithiumiron
phosphate (LFP) and lithiumnickelmanganesecobal
t oxide (NMC). Of these, the NMC chemistry is
rapidly becoming preferred among electric bus
manufacturers and customers, as it offers a
higher energy density and has a lower
self-discharge rate. Thus, with the government
efforts to control air pollution, electric bus
sales will keep rising in China.
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CHINA ELECTRIC BUS MARKET By Type Battery
Electric Bus (BEV), Plug-in Hybrid Electric Bus
(PHEV), and Hybrid Electric Bus (HEV) By Hybrid
Powertrain - Parallel Hybrid, Series Parallel
Hybrid, and Series Hybrid By Length - gt10m,
8m-10m, and lt8m By Battery - Lithium-Iron-Phosphat
e (LFP), Lithium Nickel Manganese Cobalt Oxide
(NMC), and Others By Customer - Public and Private
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This study covers 1. Historical and the present
size of the China Electric Bus Market 2. Historica
l and the present size of the market segments and
understand their comparative future
potential 3. Potential of on-demand logistics
services, so the market players make informed
decisions on the sales of their
offerings 4. Competitive scenario of various
market segments across key countries in several
regions for uncovering market opportunities for
the stakeholders 5. Major players operating in
the market and their service offerings
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