The advantages of electric logistics vehicles highlight the need for upstream motor capacity

In recent years, with the continuous expansion of e-commerce online shopping transactions, China's express delivery business has grown at a rapid rate and is expected to boost demand for electric logistics express delivery vehicles. Last year, the country's express delivery volume totaled 20.6 billion, an increase of 48% year-on-year, and the highest daily processing capacity was about 160 million. From a cost perspective, logistics costs are mainly composed of transportation, management, and storage costs, of which transportation costs account for more than 50%. The electric logistics vehicle saves at least 30% of the cost compared to traditional gasoline vehicles, which can significantly reduce the cost of logistics and transportation.

Electric logistics vehicles are mainly used to undertake logistics operations and are not limited to trucks. Some passenger cars and a small number of passenger cars can also be used as logistics vehicles. At present, highway logistics can be divided into provincial, inter-city long-distance transport, and intra-city close-distance transportation. Data show that last year China's total output of pure electric vehicles was 47,800, most of which were logistics vehicles, and a few were sanitation vehicles. The agency expects that by 2020, China's electric vehicle logistics market will reach 400,000 vehicles, and the compound annual growth rate will exceed 50%, which is expected to become a new growth point for new energy vehicles.

In terms of policy, in August this year, the Ministry of Industry and Information Technology released the information on new vehicle publicity for the "Announcement of Road Motor Vehicle Manufacturing Enterprises and Products" (No. 287), and a total of 236 new energy vehicles were selected. Among them, 190 models of pure electric vehicles. In addition, last year, four ministries and commissions including the National Development and Reform Commission jointly issued the “Notice on the Financial Support Policies for the Promotion and Application of New Energy Vehicles 2016-2020”, proposed the improvement of the operation policies for new energy city logistics delivery vehicles, and did not impose restrictions on new energy logistics vehicles. The policy does not implement total control over the indicators of the operation rights of logistics vehicles for new energy cities, and encourages the implementation of new energy city logistics distribution vehicle leasing. With the support of various policies, China's electric logistics vehicles will usher in opportunities for expansion.

The core components of electric vehicles are mainly divided into motors, electronic controls and batteries. Among them, the battery cost accounts for about 45% of the total cost, and the motor and electronic control system account for about 15%. The motor is an important part of the new energy vehicle. The electric drive is the device that controls the start and operation of the motor. The combination of the two is the core component of the new energy vehicle powertrain. With the continuous increase in the output of electric vehicle logistics, the market size of electric motor control will also increase rapidly. The agency estimates that the electric motor control market for electric vehicle logistics in China will reach 3.4 billion yuan this year. By 2020, the market scale is expected to reach 13.5 billion yuan, and the compound annual growth rate will exceed 50%.

At present, most of the electric motor control market is dominated by domestic manufacturers, and foreign companies are relatively weak in competitiveness. The domestic motor companies are mainly divided into manufacturers with complete vehicle manufacturing experience, manufacturers established specifically for the production of new energy automotive motor electrical controls, and motor manufacturers with experience in the transformation of motor production to new energy vehicles. With the continuous increase in the production and sales volume of new energy vehicles, electrical and electronic control companies are expected to usher in development opportunities.

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