SHANGHAI, June 18, 2021 /PRNewswire/ -- With the evolving
landscape of the global automotive industry, Cango Inc. (NYSE:
CANG) ("Cango" or the "Company") is issuing a bi-monthly industry
insight called "CANGO Auto View" to bring readers, drivers and
passengers up to speed with what's on offer in the automobile
market, what trends are emerging, and what holes need to be
plugged.
Below is an article from the Company's 3rd edition for
February 2021.
Back in 1876, Nicolaus August
Otto, a German, made a four-stroke gas engine with his
friend Eugen Langen. The thermal
efficiency of this engine reached 6%, four times that of the gas
engine made by Lenoir around the same time. And so, the internal
combustion engine came into being, ushering in a new era for
passenger vehicles, heavy trucks, ships, aircraft and many other
means of human mobility. Petroleum energy, as a result, became
increasingly critical.
On the other hand, it has been more than one century since the
invention and use of Electric Vehicles (EVs). In as early as 1881,
French engineer Gustave Trouvé built a tricycle powered by
lead-acid batteries. But because of backward technology, batteries
were not as economical as internal combustion engines and were
therefore not used on a large scale.
Fast forward to 2020, the advancement of new energy technology
prompted auto companies worldwide to begin making plans for EVs,
resulting in a series of pure EV launches. European passenger
vehicle companies led by Volkswagen plan to invest hundreds of
billions of euros in the electrification field and introduce
hundreds of car models. Volkswagen has reportedly rolled out mass
production of models based on its pure electric platform MEB, and
the ID.3 has been crowned Europe's
leading pure EV offering.
Meanwhile in China, Tesla, Nio,
Li Auto, WM Motor and other
emerging carmakers have been making a name for themselves, and
traditional auto companies have been launching one new energy brand
after another.
In 2018, BAIC BJEV set up a joint venture with Magna, and the
brand ARCFOX found its home in Zhenjiang; DFMC incubated Voyah;
SAIC, Alibaba and Shanghai Pudong New Area invested together and
set up IMMotors; and three years after its establishment, GAC AIAN
officially started independent operations. Multiple parties have
taken the stage to jointly usher in the era of emerging
carmakers.
Available data indicates the domestic NEV market has maintained
steady growth. As of November 2020,
cumulative sales of NEVs in China
reached 1.109 million vehicles. In 2019, 1.242 million NEVs were
produced in China, which was a
decrease of 2.25% over the 1.27 million of 2018, but 58.37% jump
from 517,000 in 2016. It is worth noting that only 79,000 NEVs were
produced in China in 2014.
In terms of industrial chain structure, NEVs are similar to
traditional gas-powered vehicles in that their industrial chain
involves multiple industries and a relatively complex chain of
players. The industrial chain of New Energy Vehicles (NEVs),
however, is structurally different from that of traditional
vehicles, because the biggest difference between these two types of
vehicles is that engines in traditional vehicles have been replaced
by motors, batteries and electronic control parts in NEVs. In other
words, on the base of the traditional industrial chain, the battery
industry (including upstream resource development), motors and
electronic control systems have been added to the industrial chain
of NEVs.
Battery safety remains an issue
NEVs are experiencing a gradual, but steady growth all over the
world, and China's power battery
industry has entered a phase of rapid development. In 2019, the
scale of China's power battery
market exceeded 70 billion yuan and power battery
output amounted to 71GWh. Behind the rapid growth, however, the
future trend of new energy battery technology and current battery
safety have triggered heated discussions across society.
Over the last three
years, China has seen spontaneous
combustion of NEVs from time to time. In 2020 alone, there were
more than 20 such accidents, involving multiple domestic and joint
venture brands.
The main reason for EV fires is
spontaneous combustion caused by thermal runaway, which happens
following external impact on batteries or improper control of the
batteries. For example, spring and summer are high-incidence
seasons for electric vehicle fires, mainly because battery
performance changes as a result of long periods of high
temperature, rain and other environmental factors. In addition, the
use of high-energy-density batteries, battery overcharging and
physical collision will lead to changes of the battery internal
structure which, in turn, will lead to spontaneous
combustion.
Tesla founder Elon Musk insists,
however, that the odds of spontaneous combustion are lower for most
EVs than for gas-powered vehicles. And he is right. According to
the Battelle Memorial Institute in the US and multiple other
institutes, from a technical point of view, EVs indeed have a lower
risk of spontaneous combustion than traditional gas-powered
vehicles.
One fact worth noting, however, is, the car parc of EVs is
relatively low and being in initial stages of industrial
development with not very high consumer acceptance yet, safety
issues need to be monitored even more closely.
About Cango Inc.
Cango Inc. (NYSE: CANG) is a leading automotive transaction
service platform in China
connecting dealers, financial institutions, car buyers, and other
industry participants. Founded in 2010 by a group of pioneers in
China's automotive finance
industry, the Company is headquartered in Shanghai and engages car buyers through a
nationwide dealer network. The Company's services primarily consist
of automotive financing facilitation, car trading transactions, and
after-market services facilitation. By utilizing its competitive
advantages in technology, data insights, and cloud-based
infrastructure, Cango is able to connect its platform participants
while bringing them a premium user experience. Cango's platform
model puts it in a unique position to add value for its platform
participants and business partners as the automotive and mobility
markets in China continue to grow
and evolve. For more information, please visit:
www.cangoonline.com.
Media Contact:
Juliet Ye
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: pr@cangoonline.com
Twitter: https://twitter.com/Cango_Group
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SOURCE Cango Inc.