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Every Third FWD Vehicle Manufactured in China is to be Made by the Volkswagen Group
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As the Chinese government seeks to improve the air quality and make China the global hub for cutting-edge electric vehicle technologies, the government is promoting new energy vehicles (battery and plug-in hybrid vehicles) through regulations and subsidies. In order to avoid penalties and take advantage of the incentives, a growing number of original equipment manufacturers (OEMs) are starting to look at driveline electrification as a solution. Moreover, there is a growing demand from consumers for technologies that offer superior performance, safety, and enhanced driving dynamics. Propelled by favorable government policies, increasing incentives, declining lifetime cost of ownership, and falling prices of batteries, the market for electrified driveline systems which comprises front wheel drive (FWD) and all-wheel drive (AWD) is expected to grow at a compound annual growth rate (CAGR) of 21% between 2016 and 2023. Towards the end of the decade global players are expected to offer superior electric vehicles at higher prices that cater to the individuals with higher disposable income. FWD is expected to continue to dominate the hybrid and electric vehicle driveline systems market and also, more OEMs are likely to offer FWD based eAWD solutions as this set up offers huge weight saving potential when compared to RWD-based eAWD. Interestingly, there is no preference among the OEMs to manufacture vehicles with RWD layout.This research service explores the future of the electrified driveline market as the industry migrates from traditional IC powered vehicles to an environmentally friendly electric and hybrid powered vehicles that offer superior driving dynamics. The objectives of the study are as follows: • Provide a strategic overview of the Chinese hybrid and electric vehicle driveline market, including key technology trends, market drivers and restraints, and adoption goals• Provide market direction of the driveline system in the passenger vehicle space by OEMs from 2016 to 2023• Provide growth trends across various segments• Analyse competitive factors, product portfolio, and capabilities• Develop an actionable set of recommendationsSome of the key questions this report will try to answer are: 1. Which driveline layout is preferred by the various OEM groups manufacturing hybrid and electric passenger vehicles in China?2. Is eAWD attractive in the electric and hybrid vehicle driveline systems market?3. Which driveline solution is preferred in which segment of vehicles, and will it continue to remain popular by 2023?4. Which layout type will see development over the medium and long terms?5. Which OEMs and segments will drive the demand for eAWD in passenger cars?The study covers the Chinese electrified driveline market, with the base year being 2016 and forecast up to 2023.
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