Electric Vehicle Sales in China Will Fall Far Short of Government Targets, According to Pike Research

  Electric Vehicle Sales in China Will Fall Far Short of Government Targets,
  According to Pike Research

Business Wire

BOULDER, Colo. -- November 20, 2012

Considering electric vehicle (EV) development and adoption to be a strategic
priority with major economic, environmental, and security impacts for the
country, the government of China has established a goal of making China the
world leader in plug-in electric vehicle (PEV) sales. This includes a target
of manufacturing 500,000 PEVs per year by 2015. According to a recent report
from Pike Research, a part of Navigant’s Energy Practice, however, annual
sales of PEVs will reach only 45,000 units by 2015, increasing to 152,000
vehicles in 2017. That figure represents less than one percent of the total
light duty vehicle market in China.

“As of early 2012, only a few domestically produced EV models were available
to China's general public,” says research director John Gartner. “Indeed,
evidence is emerging to suggest that Chinese EV manufacturers have yet to
develop proven technology that can propel the market. Even though it is
unlikely to reach its targets, however, China’s EV ambitions will provide a
huge boost to electric car development worldwide in the long run.”

Since 2003, Chinese automakers have released or announced the production of 40
battery electric vehicles and 31 plug-in hybrid electric vehicles that will be
on the market by 2015. Chinese vehicle manufacturers such as BYD, SAIC, and
Foton all delivered hybrids or PEVs to the market by 2011. Among foreign
automakers, Japanese and American manufacturers – including General Motors,
Honda, Nissan, and Toyota – were early entrants to the PEV market, while
European suppliers have yet to announce PEV launch plans for China.

The report, “Electric Vehicles in China”, outlines the market opportunities
and challenges for plug-in hybrid electric vehicles and battery electric
vehicles in China, and provides an examination of EV battery and charging
infrastructure trends in the world’s largest automotive market. The report
analyzes government initiatives and policy trends, technology and standards
issues, and key industry players in China. Detailed market forecasts for each
vehicle category, as well as for EV batteries and EV supply equipment
installations, extend through 2017. An Executive Summary of the report is
available for free download on the Pike Research website.

About Pike Research

Pike Research, which joined Navigant’s global Energy Practice on July 1, 2012,
provides in-depth analysis of global clean technology markets. The team’s
research methodology combines supply-side industry analysis, end-user primary
research and demand assessment, and deep examination of technology trends to
provide a comprehensive view of the Smart Energy, Smart Grid, Smart
Transportation, Smart Industry, and Smart Buildings sectors. Additional
information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated
to assisting clients in creating and protecting value in the face of critical
business risks and opportunities. Through senior level engagement with
clients, Navigant professionals combine technical expertise in Disputes and
Investigations, Economics, Financial Advisory and Management Consulting, with
business pragmatism in the highly regulated Construction, Energy, Financial
Services and Healthcare industries to support clients in addressing their most
critical business needs. More information about Navigant can be found at
www.navigant.com.

* The information contained in this press release concerning the report,
“Electric Vehicles in China,” is a summary and reflects Pike Research’s
current expectations based on market data and trend analysis. Market
predictions and expectations are inherently uncertain and actual results may
differ materially from those contained in this press release or the report.
Please refer to the full report for a complete understanding of the
assumptions underlying the report’s conclusions and the methodologies used to
create the report. Neither Pike Research nor Navigant undertakes any
obligation to update any of the information contained in this press release or
the report.

Contact:

Pike Research
Richard Martin, +1.303.997.7609
richard.martin@navigant.com
or
Laverne Murach, +1.202.481.7336
laverne.murach@navigant.com