What’s next for the EV sales surge?
■ EV sales in China have surged in 2H21 with a penetration rate double that in 2020. We think the charging problem will be the next big issue after the rising EV penetration rate. Our report provides an overview of the China EV charging market.
■ The low utilization rate is a major constraint for the charging pile market to be profitable. We believe that fast-charging technology will significantly improve the pile turnover rate and the popularity of EVs.
■ We expect rapid growth for China’s charging pile market in next few years. The current number of charging piles is insufficient and upgrades are needed. In addition to supporting EVs, the charging infrastructure has implications for the country’s energy network build-up.
■ Potential beneficiaries on the auto parts side include silicon carbide (SiC) adopted motor system, on-board charger (OBC), and DC/DC converter makers, which should have a competitive advantage; on the infrastructure side, upstream equipment providers should benefit first.