Plastics suppliers gear up for China's electric vehicle market

China's transformation in the last two years into the world's largest market for electric vehicles has the plastics supply chain gearing up.

While electric vehicles are a small market today, sales are growing quickly, and China's outsized presence -- it accounted for 40 percent of the 750,000 electric cars sold worldwide last year -- has plastics companies focused.

The Chinese government is hoping that by 2020, 2 million electric cars will be sold annually in the country.

A June report from the International Energy Agency said that China's electric car market in 2016 was more than twice the size of the second-largest market, the United States. China surpassed the U.S. as the biggest in 2015.

"Now the government looks at what kind of subsidies that they will put together and new regulations come out that would peg or tie a subsidy to the performance of the battery, so it will encourage high performance, high energy-density batteries,"An expert from IEA said. "This also brings advantage to our battery.

"Depending on the policy, is either a must-have a or a luxury," he said. "In China, it is a must. The regulations and policies put in place are to encourage growth."

China's overall vehicle market topped 28 million last year. A China Daily report said that if you add in other types of new energy vehicles, such as plug-in hybrids, China sold over 500,000 such vehicles in 2016, and projects to exceed 700,000 this year.

The IEA report estimates that worldwide the total number of electric vehicles in use will rise from 2 million today, to between 40 million and 70 million by 2025.

"It is still a small market," said by an expert, but noted the outlook is prompting a lot of interest. "The upside is huge."

Since the beginning of the 1980s, our government has been focusing on the development of new energy vehicles. So far, the development type of China’s new energy automobile industry is “Government+Marketing”. In 2013, the state launched out the plan that the new energy vehicle promotion work between 2013 to 2015, during these two years, ready to promote about 336,000 new energy vehicles in 39 cities.

As our government attached importance to the auto parts market, Bluestar Technology follows up, market foucus gradually swifts to automotive industry, and vigorously develops the automotive mould and injection automotive components. Bluestar Technology, as an automotive mould and parts manufacturer, tries to follow the era and the trend of the industry, increases more investments in and pay more attention to this industry. Now, Bluestar has acquired cooperation consensus in auto parts with some domestic and international OEMs and tier 1 suppliers, we believe that in the further future, Bluestar will contribute more to this industry.   

Origin news： Plastic News China