German electric vehicle R&D -Lithium - Ion Battery Equipment

Germany speeds up research and development of electric vehicles -Lithium - Ion Battery Equipment

Recently, the German Automobile Industry Association (VDA) announced that the German automobile industry will invest more than 40 billion euros before 2022 to accelerate the research and development of electric vehicles, and another 18 billion euros will be invested in the research and development of digital and networking and autonomous vehicle. At the same time, the car production of the factories set up by German car enterprises overseas is expected to increase by 3% this year to 11.6 million cars, while the car production in Germany this year is expected to decrease by about 5% to 4.8 million cars.

The German Automobile Industry Federation is an industry organization representing the interests of more than 600 enterprises in the German automobile industry. The chairman of the association, Bernhard Mattes, said that the German automobile industry would transform with a positive attitude. It was estimated that by 2022, the number of electrified models launched by German automobile enterprises would reach about 100, three times the current number.(Lithium - Ion Battery Equipment)

Bernhard Mattes also stressed that it is necessary to expand the construction of charging infrastructure and provide incentives for buyers of electric vehicles. The share of newly registered electric vehicles in Germany and other major European economies will be higher than the EU average.

Auto manufacturers are under pressure to invest heavily in electrified models, which may take several years to pay off. Consumers are hesitant about electric vehicles because of the high price, limited mileage and imperfect charging infrastructure.

The cost burden urges the old rivals to work together. Daimler and BMW said on February 28 that they would work together to develop autonomous vehicle. A few days later, they were planning in detail to transform the combined car sharing business into a global player.

Volkswagen and Ford Motor Company have agreed to cooperate on trucks, which may be extended to autonomous vehicle in the future. Auto manufacturers will display their latest electric vehicles at the Geneva Auto Show from March 7 to 17.

With such a large investment in electric vehicle R&D and adjustment of production capacity plans in domestic and overseas markets, the strategic transformation of German car enterprises is obviously to increase their revenues by large-scale distribution of overseas markets in the case of insufficient domestic demand. Among overseas markets, China is undoubtedly the country with the strongest demand for new energy vehicles.

2018 is the first year that China's car market has experienced negative growth since 28 years ago. When the whole market entered the cold winter, the production and sales of new energy vehicles increased against the trend. According to the statistics of public data, the annual cumulative production and sales volume in 2018 were 1.2705 million and 1.2562 million, up 59.92% and 61.74% respectively compared with 2017. At the beginning of 2019, the sales of new energy vehicles continued to be hot. In January, the production and sales of new energy vehicles reached 91000 and 97000, respectively, with a year-on-year growth of 153.5% and 188%. This means that China has become the world's largest producer and seller of new energy, and the future market is more promising.

China's new energy vehicle market continues to boom, while Germany's economic boom is weakening. The market situation of China and Germany is obviously one of the important reasons for the strategic change of German car companies. German new energy vehicles are also facing great challenges if they want to win a share in the domestic market.



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