New energy vehicles are emerging as a new force, and the motor system may have a market of hundreds of billions in 5 years

In August of this year, China's new energy vehicles increased threefold compared to the same period last year. Despite the overall sluggish growth of the automotive industry, new energy vehicles can be described as a "little red among thousands of green trees". The rapid growth of vehicle production has brought huge development opportunities to the upstream and downstream industry chain of new energy vehicles, and the motor system is expected to become a billion dollar market in five years.

New energy vehicles have emerged as a rising force, driving investment in the motor industry

It is predicted that the annual production of new energy vehicles will reach 200,000 units this year. As an emerging industry, although the growth rate is fast, the total amount is not large, accounting for only about 1% of the overall automotive industry. So some analysts say that with the gradual implementation of supportive policies and the improvement of production technology, the new energy vehicle industry may still have a growth space of hundreds of times.

The rapidly expanding market has driven the production of new energy vehicle components, with the motor industry showing the most impressive performance. Experts predict that based on the scale of the new energy vehicle industry, the demand for motor drive systems is expected to reach 50-100 billion yuan by 2020. Wang Kefeng, Deputy General Manager of BAIC New Energy Vehicles, introduced that the motor is one of the most core components of new energy vehicles, equivalent to the engine of traditional cars.

Wang Kefeng: It is equivalent to the function of the engine in the past of automobiles. The power source relies entirely on the electric motor, which converts the battery into driving force, which should be considered second only to the battery.

The rise of the motor industry has also ignited the capital market. The recently released semi-annual reports of 10 motor companies, including Dayang Electric, show that 80% of the companies' net profits are growing positively. In addition to established companies, more and more new entrants also want to get a share. In the first half of the year, traditional automotive parts companies such as Wanxiang Qianchao entered this field through equity participation or acquisition.

The market prospects for new energy vehicle motors are bright, and research and development enterprises need to pay more attention to technology

Although the market is optimistic, the development of the industry is not smooth sailing. Senior automotive commentator Tian Yongqiu pointed out that the "cake" in the current electric motor market is very large, but upon closer inspection, different types of new energy vehicles correspond to different technologies, leading to some companies being unable to meet market demand. So while seizing the market, we should also pay more attention to the accumulation of different technologies:

Tian Yongqiu: China's new energy vehicles cover a wide range of types, and different cars are equipped with different types of motors, which is not as you see. This market has a large "cake", but unique markets require considerable accumulation.

Another issue to be addressed is how to respond to the challenges posed by foreign enterprises. At present, the domestic new energy vehicle motor market is mainly supported by independent enterprises, but established manufacturing companies such as Denso and Siemens will inevitably intervene strongly. Wang Kefeng admitted that there is still a gap between domestic motor controller technology and foreign ones overall:

Wang Kefeng: China's motors themselves are not backward, and we have some advantages in materials and technology. However, the motor controller technology may still be mainly mastered abroad, so we mostly use its power modules for system integration or software development.

However, Wang Kefeng, Deputy General Manager of BAIC New Energy Vehicles, believes that the prospects of China's new energy vehicle motor industry are bright. As long as we make good use of the industry's first mover advantage, we can achieve "overtaking on the bend":

Wang Kefeng: I am confident because firstly, theoretically speaking, we do not have the same big gap as the traditional automotive industry. In the new energy vehicle industry, we basically started at the same time, and we have some advantages in resources, including raw materials. A more crucial point is that China is currently doing the best in the industrialization of electric vehicles. As long as we leverage the industry's first mover advantage, we will inevitably be able to drive technological progress in related component industries.