China New Energy Vehicle (NEV) Taxi Market By Ownership (Company-owned NEV Taxis and Privately-owned NEV Taxis), By Range (Short Range NEV Taxis and Long Range NEV Taxis) - Growth, Share, Opportunities, Competitive Analysis, and Forecast 2021 - 2028

The number of vehicles, including taxi fleets in China, has grown considerably in recent years, which has resulted in increased air pollution, traffic congestion, and fuel consumption. As a result, new energy vehicles have garnered a lot of interest across the globe, especially in China. Their ability to curb carbon emissions, improve air quality, and reduce dependence on foreign oil has driven market adoption.

Favorable government initiatives and policies have further fueled market momentum in China. For instance, the central government of China has started the 'Ten Cities- Thousand Vehicles Program' to promote the development and adoption of new energy vehicles through pilot projects in the country's ten major cities, centering on taxi fleets and other government fleet applications. Furthermore, a five-year vehicle emission control program (2018 – 2022) initiated in Beijing is majorly targeted toward promoting new energy vehicles for public transportation (ex-, taxis, buses, sanitation trucks, and postal vehicles, among others). Furthermore, the advancements in battery technologies have also positively impacted the upfront cost of new energy vehicles, fuelling their market adoption. All these factors are expected to collectively contribute toward a double-digit compounded annual growth rate (CAGR) during 2021 – 2028.

Report Scope

This report analyzes China's new energy vehicle taxi market regarding ownership, distance range, and geography. Based on ownership, the China new energy vehicle taxi market is segmented into company-owned and privately-owned new energy vehicle taxis. Similarly, the market is further classified based on distance range into short-range NEV taxis and long-range NEV taxis.

Based on the distance covered in a single charge, the China new energy vehicle taxi market is classified into two major categories, namely-

• Short-range NEV Taxi
• Long-range NEV Taxi

Taxis traveling between 80 and 150 kilometers in a single charge are covered under the short-range segment. Similarly, taxis capable of traveling over 150 kilometers on a single charge are considered under the long-range segment. The contribution of these variants to China's new energy vehicle taxi market in 2019 is shown in the figure below.

In terms of revenue, short-range NEV taxis dominated China's new energy vehicle taxi market in 2019. However, the segment is presumed to witness comparatively slower growth during 2021 - 2028. The slow growth in the short-range segment is expected to be offset by the growing demand in the long-range segment. On average, public taxis in China travel around 400-450 kilometers per shift, which necessitates frequent (at least thrice per shift) charging in the case of short-range taxis. In addition, the limited charging infrastructure in the country means that taxi drivers are required to wait hours at charging stations, reducing their productivity. On the other hand, long-range NEV taxis with more battery capacity enable taxi drivers to avoid frequent charging stops. Thus, the market for new energy vehicle taxis in China is expected to be shaped by the growing demand for long-range NEV taxis.

Based on ownership, the new energy vehicle (NEV) taxi market in China is categorized into two major categories, namely Commercial

• Company-owned NEV Taxis
• Privately/Individually-owned NEV Taxis

As of 2019, government-owned taxis led the China new energy vehicle (NEV) taxi market in revenue and volume. The segment accounted for over 85% of China's new energy vehicle (NEV) taxi market revenue in the same year. The dominance can be credited to the government's plan to target government-owned taxi fleets in the initial phase of the electric vehicle program. As a result, the segment is expected to exhibit steady growth from 2021 - 2028. Growing preference for private taxi ownership due to the availability of private financing schemes is also expected to impact the overall market growth in the privately-owned segment positively.

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