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Annual Production of 100,000 New Energy Electric Vehicles Project of Siping City

Information Source: Jilin Provincial Commercial Information Center
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1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The electric vehicle is a kind of vehicle which takes the vehicle-mounted power supply as the power source and drives the wheels by the electric motor, and it strictly complies with the regulations of road traffic and safety regulations. Such vehicles are powered by electrical energy stored in batteries. Electric vehicles are known for their advantages of non-pollution, low noise, high energy efficiency, simple structure and easy maintenance. This project focuses on the production of light electric bicycles, electric motorcycles and electric four-wheel cargo vehicles.

1.1.2 Market prospect

(1) Market Status

1. Status of light electric bicycle market

The light electric bicycle market is showing robust growth, with its market size continuously expanding, especially in rural areas, where new growth points are emerging. Thanks to its convenience, affordability, and environmental benefits, electric bicycles have gained widespread popularity among urban residents, students, and delivery workers, becoming an important choice for daily transportation.

Market size and growth trends: In 2024, the market size of the electric bicycle industry will continue to grow, especially in the rural market. With the improvement of purchasing power and the change of consumption concept, the electric bicycle market is showing new growth potential. In addition, the market for micro pure electric vehicles is gradually recovering. In the first nine months of this year, sales rebounded to 756,800 units, representing a year-on-year growth of 48%.

2. Current status of electric motorcycle market

As a kind of electric vehicle, electric motorcycle is a kind of two-wheel vehicle, which uses battery to drive motor. Compared with the traditional motorcycle using the internal combustion engine, the electric motorcycle has the advantages of environmental protection, energy saving and powerful power. Therefore, it is highly suitable for short to medium-distance commuting, transportation instead of walking, and recreational activities, and other scenarios, and has been widely applied in urban transportation, logistics distribution, and tourism.

In recent years, the electric motorcycle market has grown rapidly, mainly due to the increasing of environmental awareness and policy support. Electric motorcycle, with its characteristics of environmental protection and low carbon, has gradually become a new favorite of consumers. In terms of market structure, two-wheeled electric motorcycles dominate the market. According to the data, in 2023, two-wheeled electric motorcycles accounted for 77.91% of the total sales, while three-wheeled electric motorcycles accounted for 22.09%. According to statistics, China has become the global leader in the production and sales of electric motorcycles, with the total number of electric motorcycles in circulation approaching 400 million.

China's electric motorcycle industry chain has been quite mature, from the supply of core components upstream, such as batteries, motors, and electronic control systems, to the midstream companies with strong R&D and design capabilities in production, and downstream companies delivering products to consumers through diversified sales channels, while also establishing a comprehensive after-sales service system. This forms the well-established electric motorcycle industry system in China.

3. Current status of electric four-wheel cargo vehicles market

With the acceleration of urbanization and the rapid development of urban logistics distribution, community service and other industries, small electric four-wheel cargo vehicle has been widely paid attention to and applied in the market. With its economy, environmental protection and flexibility, small electric four-wheel cargo vehicles have become the preferred means of transportation for short-distance logistics and community delivery, the market prospect is very broad prospect.

First, the accelerated process of urbanization and the development of the e-commerce industry have led to a continuous increase in the demand for small cargo vehicles. The government's restrictions on the use of traditional fuel vehicles have also prompted more businesses and individuals to choose new energy small trucks. Significant technological advancements, particularly in battery, charging, and intelligent control technologies, have greatly improved the range and charging efficiency of new energy small trucks, making operations more reliable and convenient.

Second, although the market competition is intense, the major automobile enterprises increase their investment and launch diversified products. The strong support of the government, including subsidy policy and charging infrastructure construction, has provided a solid guarantee for the development of new energy small cargo vehicle. In terms of sales volume, the sales volume of new energy micro card has been increasing year by year, especially in the new first-tier cities. Guangdong and the Sichuan-Chongqing are the main sales areas. The main application scenarios include fresh fruits and vegetables as well as hardware and building materials.

In addition, the low-speed electric four-wheel cargo vehicle also has a broad development prospect in the rural market. They feature characteristics such as being economical, environmentally friendly, and safe, effectively solving travel problems for farmers. Their operating costs are low, requiring no fuel or maintenance fees; the main costs are battery replacement and charging fees. The low-speed electric cargo vehicle has obvious price advantages, small size, low power consumption and low travel cost. They are highly favored by the lower-income population, and the market penetration is very high.

(2) Market demand forecast

1. Market demand for light electric bicycle

The overall outlook for the electric bicycle market is positive, with growth expected to continue in the coming years.

Market size and growth trend: The market size of electric bicycles continues to expand, and as the world's largest producer, consumer, and exporter of electric bicycles, China's market size is particularly vast. According to the data, the market size of electric bicycles in China reached a significant scale in 2023, and it is expected to maintain a growth trend in the coming years. Among them, as the mainstream product, the market size of lithium battery electric bicycle has reached 39.78 billion yuan in 2023, which is expected to increase to 50 billion yuan by 2025, with a compound annual growth rate of 15%. In addition, in 2023, China's lithium battery electric bicycle production reached approximately 21.5 million units, with sales around 19.4 million units. The total sales volume of electric two-wheelers increased from 32.2 million units in 2018 to 55 million units in 2023, with an annual compound growth rate of 11.3%.

Market demand and user group: Electric bicycle with their convenience, affordability, and environmental benefits, have seen a steady rise in demand. They are widely favored by urban residents, students, and delivery workers, becoming an essential mode of daily transportation. In particular, in rural markets, with increasing purchasing power and shifting consumer attitudes, the electric bicycle market is showing new growth opportunities. The demand groups for electric bicycles are mainly divided into individual users and specific professional groups. Individual users include office workers, students and other people who require short-distance transportation but find using motor vehicles inconvenient, or individuals from lower-and middle-income households. Specific professional groups mainly include delivery drivers, couriers, and other workers engaged in immediate delivery services.

In summary, the market prospect of electric bicycle is optimistic, the market size will continue to grow, the trend of technological innovation and intelligence will further improve the user experience, and the policy support and the expansion of export market will also provide new growth momentum for the industry.

2. Demand of electric motorcycle market

The demand in the market for electric motorcycles has been continuously growing, mainly driven by the increased environmental awareness and policy support.

In recent years, with the growing global environmental awareness and policy promotion, the demand for electric motorcycles has steadily increased. Compared to fuel motorcycle, electric motorcycle is more environmentally friendly and low-carbon, and align with the trend of global trend of energy conservation and emission reduction. Since the implementation of the new national standard in 2019, the electric motorcycle market has entered the stage of standardized development. The new national standard has strictly regulated the quality, speed and power of electric motorcycles, prompting enterprises to increase the investment in technology research and development and promote product upgrading.

The advantages of electric motorcycles include low cost, low energy consumption and ease of maintenance. Compared with fuel motorcycle, electric motorcycle has low travel cost and obvious price advantage, and its energy consumption cost is only half of that of fuel motorcycle. In addition, the internal structure of the electric motorcycle is relatively simple, and the maintenance aspect is superior to that of the fuel motorcycle.

The main players in the electric motorcycle market include brands such as Yadea, Tailg, and Sunra. These brands, with their solid brand foundation and extensive market coverage, remain at the forefront of the market. In the coming years, the market size of electric motorcycles will continue to expand. With the ongoing urbanization process and the rise of environmental awareness, the electric motorcycle market still holds significant growth potential. In spite of short-term market fluctuations, the electric motorcycle market will continue to grow in the long run.

3. Demand of electric four-wheel cargo vehicle market

Urban logistics distribution demand: With the rapid development of e-commerce, express delivery and other industries, the demand for urban logistics distribution is increasing. Small electric four-wheel cargo vehicle has become the ideal choice for city logistics distribution because of its moderate volume, large cargo capacity and low cost.

Community Service Demand: With the development of urban communities, the demand for community services is also increasing. The small electric four-wheel cargo vehicle can be widely applied to the scene of garbage removal, express delivery, vegetable purchase and the like in the community, and provides convenient service for the residents in the community.

Demand of agricultural and rural market: In agricultural and rural areas, small electric four-wheel cargo vehicles can meet the needs of farmers for short-distance transportation of agricultural products, fertilizers and other materials, and improve agricultural production efficiency.

Small electric four-wheel cargo vehicle has wide application prospect and significant development potential in the market. Its characteristics, such as economy, environmental friendliness, and flexibility, make it the preferred transportation tool for short-distance logistics and community distribution. Brands need to strengthen technological innovation and product differentiation based on market demand and their own characteristics, improving product quality and service levels to capture market share. At the same time, the government should strengthen the support for the environmentally friendly vehicles and provide policy support for the development of small electric four-wheel cargo vehicles.

1.1.3 Technical analysis

Battery Technology: Battery is the power source of new energy vehicles. The mainstream battery types include ternary lithium battery and lithium iron phosphate battery. Ternary lithium battery has high energy density and long endurance range, but its safety is relatively lower. Lithium iron phosphate battery has good safety and long lifespan, but its energy density is low. In addition, solid-state batteries are considered a key development direction for future battery technology due to their higher energy density and improved safety.

Charging Technology: To improve the speed and convenience of charging, researchers are developing faster charging technology and wireless charging technology. The use of fast charging stations and wireless charging technology can significantly improve the user experience.

Energy recovery technology: New energy vehicles often adopt a braking energy recovery system to convert the energy generated during braking into electric energy to be stored so as to improve the energy utilization efficiency.

Lightweight technology: By using lightweight materials such as carbon fiber reinforced plastics, new energy vehicles can reduce weight, improve energy efficiency and endurance.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

On November 2, 2020, the General Office of the State Council issued the “New Energy Vehicle Industry Development Plan (2021–2035),” which stated that by 2025, China's new energy vehicle market will see significant improvements in competitiveness. Key technologies, including power batteries, drive motors, and vehicle operating systems, will achieve major breakthroughs, and safety levels will be comprehensively enhanced. The average power consumption of new pure electric passenger vehicles has dropped to 12.0 kWh/100km, the sales volume of new energy vehicles has reached about 20% of the total sales volume of new vehicles, the commercial application of highly autonomous vehicles in limited areas and specific scenarios has been realized, and the convenience of battery charging and swapping services has been significantly improved.

(2) Industrial advantages

The automotive parts industry is one of the pillar industries of Yitong County. The main products include: Spun wheels, special-purpose wheels, military wheels, mining wheels, section steel wheels, silicone oil fan clutches, gasoline filters, air filters, diesel pre-filters, fuel filters, oil pressure relief valves, automotive interior components, electric power steering systems, automotive high-pressure hoses, rubber sealing components, automotive longitudinal rail, wheel hubs, brake drums, high-pressure fuel pumps, precision castings, transmission gears, and over 200 other varieties of automotive parts and components. These products fall under six main categories: body module, environmental module, steering and transmission module, driving module, braking module, and engine accessory system module.

As of now, Yitong County has 4 automotive parts enterprises above a designated size, namely: Jilin Rui Special Automotive Components Co., Ltd.; Yitong Manchu Autonomous County Lixin Automotive parts Factory; Jilin Yuxing Machinery Manufacturing Co., Ltd.; Jilin Yite Rubber Hose Co., Ltd. Leveraging the Yitong Economic Development Zone, the county plans to build an automotive parts industrial park to serve as an industrial support base for Changchun. The industrial layout will create a development space of “one park, one base,” aiming to become a satellite city of Changchun.

(3) Location advantages

Yitong Manchu Autonomous County, located in the south-central part of Jilin Province, is the nearest county to Changchun City. It is only 48 kilometers away from the urban area of Changchun and only a 30-minute drive. The county is 77 kilometers away from Changchun Longjia International Airport, about 1 hour drive. Yitong has a well-developed transportation network, including Fusong - Changbai Expressway, Changchun-Liaoyuan Expressway, Changchun-Meihekou Expressway and Changchun City Ring Highway. It serves as a key passage for 4 regions and 16 cities (counties) in the central and southern parts of Jilin Province to reach Changchun. In addition, the Yitong Section of Liaoyuan-Changchun Railway was completed and opened to traffic in 2016, ending Yitong's history of lacking a railway connection. The completed Yitong-Changchun first-grade highway has provided two new, smooth arterial routes for the transportation network, facilitating the urban integration between Yitong and Changchun. The surrounding infrastructure of the project construction site is well-established, with convenient transportation and relatively complete resource conditions required for production.

(4) Talent advantages

Siping is home to several universities, including Jilin Normal University, Boda College of Jilin Normal University, Jilin Engineering Vocational College, Siping Vocational College, and the newly established Hongzui Vocational Technological College, Jilin University Siping Medical College, and Siping Radio and Television University. Among them, Jilin Normal University is a key university in Jilin Province, with 16,302 full-time undergraduate students, 1,844 graduate students, 336 international students, and 15,131 adult education students. It trains thousands of higher-level professionals for society each year. Surrounding cities such as Changchun, Harbin, and Daqing are home to many universities, collectively offering more than 500,000 higher-level talents annually. These talents can provide technological support for project construction.

1.2 Contents and scale of project construction

The project covers an area of 35,000 square meters and a construction area of 27,500 square meters. New production workshops, factories, warehouses, employee dormitories, etc., and purchases 93 sets of equipment. The annual production capacity is 40,000 units of lightweight electric bicycles, 40,000 units of electric motorcycles, and 20,000 units of electric four-wheel cargo vehicles.

1.3. Total investment of the project and capital raising

The total investment of the project is 300 million yuan, including construction investment of 210 million yuan

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 312 million yuan, its profit will be 65 million yuan, its investment payback period will be 7 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 19%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The impact of the new energy electric vehicle project on social benefits is mainly reflected in the following aspects:

Environmental Protection: The use of new energy electric vehicles has significantly reduced the consumption of fossil fuels, thus reducing the emission of carbon dioxide and other pollutants and reducing the pressure of environmental pollution. The exhaust emission of traditional fuel vehicles is one of the main sources of air pollution, while the zero emission characteristics of electric vehicles can effectively reduce the air pollution, improve the air quality and protect the ecological environment.

Health benefits: Reducing air pollution not only helps improve air quality, but also reduces health issues caused by environmental pollution, such as respiratory and cardiovascular diseases. The popularity of electric vehicles has helped to reduce the incidence of these diseases and improve public health.

Energy security: The development of new energy electric vehicles helps to reduce the dependence on non-renewable energy such as petroleum, to improve energy utilization efficiency and ensure national energy security. By using clean energy, electric vehicles reduce dependence on foreign oil and increase the country's energy independence.

Economic effect: The development of the new energy electric vehicle industry has driven the upgrading of relevant industrial chains, including the development of battery manufacturing, charging facility construction, smart grid and other fields. The development of these industries creates a large number of employment opportunities, promotes economic growth and forms a benign industrial cycle.

Transformation of social concept: With the increasing awareness of environmental protection, an increasing number of consumers choose new energy electric vehicles as travel tools, which reflects the social recognition and support for sustainable lifestyle. The widespread adoption of new-energy electric vehicles is expected to change people's way of travel and promote the development of society towards a greener and lower-carbon direction.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation, etc.

1.6 What to be invested by the foreign party

Funds and other ways can be negotiated face to face.

1.7 Construction site of the project

Yitong Manchu Autonomous County

1.8 Progress of the project

Project proposal has been prepared

2. Introduction to the Partner

2.1 Unit basic information

Name: Yitong Manchu Autonomous County Government

Address: No. 88, Zhonghua East Road, Yitong Town, Yitong Manchu Autonomous County

2.2 Unit overview

Yitong has a long history and profound culture. Yitong is one of the important birthplaces and residential areas of the Manchu people. In ancient times, it was called Yidun or Yitun, which is a transliteration from the Manchu language, derived from the Yitong River's name, meaning a vast and surging river. As early as more than 4,000 years ago, the ancestors of the Manchu people began to thrive here, creating the brilliant Manchu culture.

Yitong is a place blessed with exceptional talent. The region has produced numerous remarkable individuals. There were military generals, scholarly officials, and distinguished figures such as Ba Qilan, a founding hero of the Qing Dynasty, the famous anti-Russian general iktangga, and the Manchu poet Mu Mutian, all born here. Prominent generals and giants like Li Hongguang, Li Shichao, Ji Xingzhou, and Wang Minggui have also illuminated the skies with their brilliance. Yitong has obvious location advantages and well-developed transportation network. Yitong is the nearest county to Changchun, and it is also a vital passage for four regions and sixteen cities (counties) in the central and southern parts of Jilin Province on their way to the provincial capital. Fusong-Changbai Expressway, Changchun-Liaoyuan Expressway, Changchun-Meihekou Expressway pass through the border, Liaoyuan-Changchun railway was completed and opened to traffic, ending Yitong's history of lacking a railway connection. The intercity expressway from Changchun to Yitong has been completed, allowing Yitong to benefit from the radiation effect of Changchun. Yitong is rich in resources and cultural heritage. It is an important food, animal husbandry and forestry base in China. The region is endowed with abundant resources such as oil, natural gas, coal, and geothermal energy beneath the ground. Its unique volcanic geology has also created valuable mineral water resources. Yitong's green agricultural products, such as rice, deer products, wild vegetables, and free-range eggs, are well-known both inside and outside the province. Yitong Manchu Art Troupe has given brilliant performances at the Shanghai Expo and has appeared many times on CCTV screens. Cultural events such as the International Shaman Culture Festival, Volcano Tourism Festival, Er Ren Zhuan Art Festival, and Pearl Ball Invitational have showcased the region's beautiful folk culture to domestic and international visitors.

This is a fertile land that nurtures vitality; this is a land full of hope and opportunities. With large-scale construction, vast spaces, improved transportation, and active investment promotion, a magnificent chapter of economic and social development is being written. With the new normal, new vitality, new economy, and new image, a dynamic, ever-changing, and three-dimensional landscape of the Manchu countryside is unfolding. Here, the grass is green with spirit, and the water flows with rhythm; Here, the air is fresh and the scenery is picturesque; Here, the rural customs are simple, and people's lives are harmonious; Here, is the place known as the “Seven-Star Blessed Land,” the only Manchu Autonomous County in Jilin Province-Yitong.

Yitong is committed to the construction of both soft and hard environment, striving to create an investment environment where businesses can invest without concerns, construct without interference, and develop without obstacles. The county guarantees the shortest approval process, minimal fees, and the highest service quality, earning the title of the “three ‘no worries’ and five ‘best’ county.” Following the service philosophy of “strictly managing what must be managed, freeing what should be freed, and leaving what can be managed to the discretion of the parties,” the county ensures that wherever enterprises go or projects are built, services will follow. With good reputation, it has earned the trust of foreign businesses and investors, creating a strong atmosphere of being business-friendly, secure, and prosperous. The region's favorable resources and ecological conditions provide Yitong with a more relaxed, superior, and comfortable environment for entrepreneurial development. This has created an irresistible attraction, drawing keen attention from investors both within and outside the province. In recent years, nearly 100 enterprises such as Riyadh Energy, Jilin Oilfield Company, Changchun Yatai Group, Jilin Yitong International Logistics, Guangdong Wens Foodstuff Group, and Qingdao NESI, have settled in Yitong, all achieving significant returns. This is a land full of infinite business opportunities, an ancient yet youthful giant, accumulating strength and ready to unleash its power. With unprecedented vitality, it is extending its wide arms, embracing guests from all over the world with a heart that can accommodate all.

2.3 Contact method

Contact person of project unit: Yang Ming

Tel: +86-18643489888

Email: jlytswj@126.com

Contact method of the city (prefecture) where the project is located:

Contact unit: Siping City Economic Cooperation Bureau

Contact Person: Wen Dacheng

Tel: +86-434-3260536

Email: spjhjjhk@163.com

(责任编辑:李光辉)
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