Brief Analysis of Market Concentration of Power Battery in 2019

"In the next two or three years, the competitive pattern of the power battery industry in China will undergo major changes. "

According to a report released by Wuhui, research director of the Ivy Economic Research Institute, at the 2018 China New Energy power battery and Storage Energy Industry Conference, as far as the number of power battery companies and market concentration are concerned, as of 2020, the total number of power battery companies will be gradually reduced., Concentration will reach a maximum of 70 per cent in 2019 and then decrease year by year, or to 50 per cent by 2020.

The report shows that from 2018 to 2020, the leading power battery enterprises in China changed from BYD to Ningde, and that lishen, AVIC Li-Shen, Wan-Xiang, Guangyu, CITIC Guoan and other companies have dropped significantly. Voneng, Bic, Yiwei Li-Neng, Jiangsu Zhihang, Guangdong Tianjin and other companies have risen significantly.

The number of enterprises has gradually declined, especially after the elimination of subsidies in 2020, some companies that do not make money gradually withdraw; Market concentration will show a pattern of concentration and dispersion(mainly considering the withdrawal of subsidies in 2020, the entry of foreign companies, the emergence of new technologies and other factors will lead to changes in the competition pattern of the industry).

After reviewing the development of new energy vehicles and power cell industry in China, the output of power cell has maintained a high rate of growth. In 2017, China's power battery production reached 42.8 GWh, an increase of 40.3 % year-on-year, and the year-on-year increase fell significantly. Quarterly production was markedly uneven, with output falling sharply year-on-year in the fourth quarter because of inventory pressures and corporate concerns about the 2018 policy uncertainty.

As the industry matures gradually, the degree of concentration increases while increasing the strength of shuffling. The market share of leading companies has increased, and CATL has increased from 20.6 % in 2016 to 29.2 % in 2017; The competition pattern of enterprises changed, passenger car batteries and ternary batteries accounted for a significant increase.

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