Why Hybrid Electric Buses May Dominate in China, One Day
Electric Bus with Highpower Batteries Operated in Shanghai
China may present the highest potential market for hybrid electric buses, and here’s why.
According to recent data estimates, there are around 1.5 million buses in operation in China today, with a mandate that they can only be on the road for eight years. This equates to a changeover market of around 190,000 buses every year in China, without taking into account any growth.
At the time, a mere 6% of the Chinese population owns a vehicle. The figure is growing, but 94% of 1.4 billion people still need transportation, and they do this largely by bus.
Now, here’ the grabber: A recent announcement stipulated that starting in 2016, 20% of government vehicle purchases must have zero emission technology. What’s more, a recent report from Navigant Research says that by 2018, it is expected that 75,000 electric buses will be on the roads globally, with the Asia-Pacific market making up 75% of the market.
All of which brings us to the present – realizing the potential Highpower International, Inc. (NASDAQ: HPJ), a developer, manufacturer, and marketer of lithium and nickel-metal hydride (Ni-MH) rechargeable batteries, and a battery management systems and battery recycling provider, has announced that its large format lithium batteries are now installed on 155 hybrid electric buses in China as of March 31, 2015, mostly being operated in municipal areas in Shanghai.
In the first quarter of 2015, the company’s large format lithium batteries were installed on another 74 hybrid electric buses in additional to 81 buses installed in 2014. The hybrid electric buses are mainly manufactured by Shanghai Wanxiang Daewoo, a Chinese and Korean automobile joint venture.
According to market data estimates, there are around 1.5 million buses in operation
George Pan, Chairman and CEO of Highpower, commented, “Electrical transportation is a strategic and important market for Highpower. China’s central and local governments are committed to fighting air pollution. Since our large format lithium batteries were certified by China’s National Quality Control & Inspection Center for Buses last August, we have been actively exploring the electric bus market in China along with our partners. We are optimistic about the growth opportunities of the market in the coming years.”
And, “optimistic” may be an understatement
Category: Hybrids
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