Innova Research's Report Points Out the Largest Uncertainty of Chinese Fuel Cell Vehicle Market

The Innova Research team is conducting research on the “Hydrogen Production, Storage & Transportation, and Utilization Technology Landscape in China”. During the interviews with fuel cell vehicle (FCV) makers, fuel cell battery markers, and other opinion leaders in the hydrogen industry value chain, there were a lot of discussions going on around the government subsidies for FCVs in China.

Chinese government started the subsidy policy for new energy vehicles, including FCVs and electric vehicles (EVs) as early as 2009, and the policy was planned to be terminated by the end of 2020. While the Chinese EV market has proven to be a success, the FCV market has lagged far behind due to slower technology development and prevalent safety concern. Innova Research estimated that, by the end of first half of 2019, around 2,000 FCVs were running on the roads in China, compared with over 2.6 million EVs by the end of 2018.

On the other hand, the penetration of FCVs has been increasing rapidly, especially when multiple city governments started to invest hugely to build hydrogen stations around major cities in China two years ago. Needless to say, government subsidies still play a critical role in promoting the adoption of FCVs. For example, each FCVs purchase can receive RMB 500,000 (per commercial FCV) or RMB 200,000 (per passenger FCV) from the Central Government, and sometimes additional subsidies from the local governments, to cover the costs.

Dr. Nancy Wu, research director at Innova Research commented, “While the Chinese FCV market is growing rapidly in the past few years, the possible change of the subsidy policy becomes the largest uncertainty for future expansion. There are a lot of debates on whether to continue the subsidy policy, with powerful supporters from both sides of the debates. Innova Research will watch closely on the possible change of the policy and its influence on the FCV market in China.”  

About Innova Research

Innova Research is a market research and consulting firm focusing on emerging technologies, including advanced materials, renewable energy and environmental technologies, advanced electronics, industry internet and robotics, energy storage, among others. The company also provides technology scouting and deal sourcing services to corporate VCs, VCs, and corporate R&D clients. Driven by primary research, Innova Research’s market intelligence reports, technology scouting and consulting services help our clients to make the right strategic and investment decisions in the fast-changing technology world. Visit www.innovaresearchinc.com for more information.

Source: Innova Research

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