Ipsos awarded Tianneng Power the 2014 China Electric Vehicle Power Battery Leadership Brand Award

Figure 1: Bar chart of China’s electric bicycle battery demand, 2013-2020

Figure 2: China's electric tricycle battery demand scale bar chart, 2013-2020;
Figure 3: China's low-speed electric vehicle battery demand scale bar chart, 2013-2020

Figure 4: China’s low-speed electric vehicle power battery market share by sales revenue, 2013

Tianneng Power International Co., Ltd. (hereinafter referred to as "Tianneng Power", stock code: 00819) won the 2014 China Electric Vehicle Power Battery Leadership Brand Award from Ipsos, a leading global research group, for the second consecutive year.

The award is based on its comprehensive market share, sales growth, brand awareness and final customer satisfaction, which once again affirms Tianneng Power's outstanding market performance and excellent overall corporate quality. According to Ipsos's forecast, Tianneng Power International Co., Ltd.'s market share of electric bicycle power batteries reached 35% in 2013, and its market share in the field of low-speed electric vehicle batteries reached 51%, making it the current leader in China's electric vehicle power batteries.

Ipsos said in its research report "2013 China Electric Vehicle and Electric Vehicle Power Battery Market and Industry Analysis" that the battery product market is expected to achieve a compound annual growth rate of 14% between 2013 and 2020, driven by strong demand from environmentally friendly electric vehicle manufacturers as the government encourages the use of alternative energy to reduce dependence on oil and alleviate the impact of smog on residents' lives.

Ipsos data predicts that total sales of battery products will reach $16.8 billion in 2020, more than double the $6.6 billion in 2013. Cui Xiaobo, head of Ipsos Business Consulting in Beijing, commented, "Thanks to the huge number of electric bicycles and the explosive growth of the electric tricycle market, China's demand for battery products will rise rapidly by 2020."

The report shows that with the further release of consumption power in rural areas, the number of electric bicycles in China exceeded 120 million by the end of 2013. Ipsos predicts that by 2020, the number of electric bicycles in China will reach 160 million, with a compound annual growth rate of 4% from 2013 to 2020. The sales of electric bicycle power batteries are expected to achieve a compound annual growth rate of 6% during this period, and sales in the primary and secondary markets are expected to reach US$7.6 billion.

According to data analysis from an Ipsos report, the sales growth of electric tricycles has further accelerated due to the popularity of middle-aged and elderly people in the rural market. In 2013, the number of electric tricycles reached 20.93 million, a year-on-year increase of 46%. By 2020, given the increasing number of aging population in China, the number of electric tricycles is expected to climb to 102 million, and the sales of electric tricycle power batteries are expected to achieve a compound annual growth rate of 27% between 2013 and 2020, reaching US$7 billion, forming a huge market of almost the same size as the demand for electric bicycle batteries. At the same time, as China vigorously advocates the development of energy-saving and environmentally friendly products, low-speed electric vehicles will usher in great development opportunities. In 2013, the number of electric tricycles reached 430,000. Ipsos predicts that by 2020, the number of low-speed electric vehicles in China will reach 4.79 million. Lead batteries that support low-speed electric vehicles with strong price competitiveness will also gain new growth in the future.

Lead battery manufacturers have been reduced from more than 1,900 to about 200, as most of them were forced to close down after the Ministry of Environmental Protection launched an environmental review storm in 2011. Although lead batteries will continue to dominate the electric vehicle market in the near future, technological upgrades will gradually promote the development of lithium batteries, which are expected to achieve rapid growth in the electric bicycle market, with Ipsos predicting that its market share will reach about 10% by 2020.