OEM Electrification Strategies: Strengthening HVs and diversifying into EVs, PHVs, and FCVs - MarkLines Automotive Industry Portal

Toyota, Honda, Hyundai-Kia, GM, and Ford trends

2018/05/01

As environmental regulations become more stringent around the world, major automakers that have been leading the HV market are targeting to increase sales of electric vehicles by expanding their lineups of EVs, PHVs, and FCVs.

This report covers the electric vehicle expansion policies and release plans by category of Toyota, Honda, Hyundai-Kia, GM, and Ford, provide a summary of the major EV and PHV models, and update the road maps related to electrification. Based on MarkLines vehicle sales by model data, this report also provides an aggregate of the vehicle sales of major electric vehicle models from 2015 to 2017.

Toyota and Honda announced their sales targets for electric vehicles to 2030. In addition to strengthening their HV lineups, these automakers plan to diversify their electric vehicle model lineups by introducing PHV, FCV, and EV variants. Hyundai-Kia established its targets for the introduction of electric vehicles in 2025, and will expand its lineup of HV, PHV, and EV models for its Hyundai Ioniq and Kia Niro electric vehicles. GM and Ford established targets for the introduction of electrified vehicles by 2020, and will promote the introduction of EVs and the electrification of major vehicle models, primarily for the North American and Chinese markets.

The final section of this report includes a table summarizing the status of the introduction of electric vehicles to the Chinese market by foreign-owned OEMs, as well as a table summarizing the sales volume actuals for key electric models (2015 to 2017). Foreign-owned OEMs have announced plans to strengthen their businesses related to new energy vehicles (NEVs) and to further accelerate the introduction of EV and PHV models going forward.

Related Reports:
OEM Electrification Strategies: Acceleration of EV and PHV Lineup Expansion (Apr. 2018)

Toyota and Honda announced their sales targets for electric vehicles through 2030. In addition to strengthening its HV lineups, these automakers plan to diversify their lineups of electric vehicle models by introducing PHV, FCV, and EV variants. Both companies have been selling HV models in a wide range of vehicle segments, mainly in Japan and the U.S., with Toyota introducing the Prius PHV and the MIRAI FCV, and with Honda introducing the Clarity series of electric vehicles that include a lineup of FCV, EV, and PHV variants. Both companies announced EV concepts in 2017 and will work to meet the increasingly stringent emissions regulations in China, Europe, and other countries.

Hyundai-Kia established its targets for the introduction of electric vehicles to 2025, and will expand its lineup of HV, PHV, and EV variants for its Hyundai Ioniq and Kia Niro electric vehicles, as well as other models such as Hyundai's Kona EV and Kia's Optima PHV. The companies will also promote the introduction of electric versions of vehicle models for mass market sales.

GM and Ford established their targets for the introduction of electric vehicles to 2020. In 2017, GM entered the EV market, releasing the Chevrolet Bolt in North America and the Baojun E100 in China. Ford is proceeding with its electrification plans for mass market models such as the Fusion, Focus, C-MAX, and F-150.

Toyota: Aims for 5.5 million electrified vehicles and 1 million EV and FCV in 2030

Since launching the Prius in 1997, Toyota has led the global market in terms of sales volumes of electrified vehicles, led by HVs at the center of its strategy. However, in light of the increasingly stringent zero emission vehicle (ZEV) regulations being implemented in China, California and 10 other states in the U.S., Toyota's current direction is to expand its lineup of electrified vehicles to include PHV, FCV, and EV variants as well as to promote its dominant market leading HV models. At the end of 2017 Toyota announced its plans to target sales of over 5.5 million electric cars in 2030, of which EVs and FCVs will comprise over 1 million units. By 2025, Toyota's plans call for the expansion of electric vehicles to HVs, PHVs, and EVs for all its models on a global basis and discontinue the production of vehicles powered solely by internal combustion engines.

Toyota plans to introduce 10 new EV models globally in the early 2020s. The company will accelerate the introduction from the Chinese market, and sequentially introduce EVs in Japan, India, the U.S., and Europe. As far as FCVs are concerned, the company will expand its product lineup of FCV passenger cars and commercial vehicles in the 2020s. The company will also expand its product lineup of PHVs in the 2020s. In addition to improving the performance of the Toyota Hybrid System (THS II) for HVs, Toyota will introduce a number of variants such as high-power and mild-hybrid system models.

In 2017, Toyota announced its EV Concept-i series of vehicles equipped with an artificial intelligence (AI) system as well as its Fine-Comfort Ride FCV concept vehicle. At CES 2018, Toyota unveiled its e-Palette concept EV for mobility services.

Prius Series The 4th generation Prius was released at the end of 2015. In 2017, Toyota released a PHV that is marketed as the Prius Prime in North America. The vehicle specifications for Japanese and European markets include a solar charging system. Concept-i Series Toyota's EV concept with artificial intelligence (AI) system technology was unveiled at CES 2017. Evolved versions of the Concept-i series were announced at the 2017 Tokyo Motor Show and CES 2018. Toyota is planning to start public road verification testing in Japan around 2020 using vehicles equipped with some of the concept car's features. The Concept-i series includes a lineup of vehicles that include the compact i-RIDE car for urban mobility and the three-wheeled i-Walk personal mobility solution for a single rider. e-Palette Concept The e-Pallette that Toyota exhibited at CES 2018 is its customizable, mass market, next generation EV. The model demonstrates Toyota's MaaS (Mobility as a Service) vision. Toyota has announced that it has formed an alliance for the mobility services business that includes partners such as Amazon and Pizza Hut, with technical participation by partners such as Mazda and Uber. Fine-Comfort Ride The Fine-Comfort Ride premium saloon FCV concept vehicle was unveiled at the 2017 Tokyo Motor Show.

Joint development of EVs and batteries

Toyota and Mazda signed a joint venture agreement in August 2017. The venture will allow the two companies to jointly develop a common EV platform that can be adopted for a variety of vehicles including mini vehicles, SUVs, and light-duty trucks. Mazda will be launching vehicles in 2019 and Toyota in 2020.

In September 2017, with the establishment of EV C.A. Spirit, Toyota formed a partnership with Mazda and Denso for the joint development of technologies for basic EV concepts. In addition to EV platforms, the companies will partner to research the characteristics required for major units such as batteries, motors, inverters, etc., to be developed and provided by their respective development departments.

In December 2017, Toyota announced that it is collaborating with Panasonic on the development and manufacture of prismatic lithium-ion EV batteries.

Honda: Clarity series introduced, with plans to electrify two-thirds of Honda vehicles sold globally in 2030

2030 Vision

Honda has established a goal of electrifying two-thirds of the four-wheel vehicles that it sells worldwide in 2030. The breakdown for those vehicles is about 15% for ZEV vehicles (FCVs and EVs), and more than 50% for PHVs and HVs. Honda will market these vehicles in Japan, the U.S., Europe, and China. For Europe, Honda's plans to replace conventional ICE-powered vehicles will be implemented 5 years earlier than other regions, to achieve its two-thirds target in 2025. Also, through the common use of HV components, Honda plants to reduce the cost of FCVs to a level comparable with that of HVs by 2025.

Introduction of the Clarity series, announcement of EV concept

For the Clarity series of electric vehicles, Honda introduced its FCV in 2016, and its EV and PHV models in 2017. At CES 2017, Honda displayed its EV concept cars, the Urban EV Concept city commuter and the NeuV, which is likely to be targeted for ride-sharing services. Honda also unveiled its Sports EV Concept sports car at the 2017 Tokyo Motor Show. Honda plans to introduce production models of these EVs for the mass market in Europe from 2019. Regarding HVs, Honda is selling a number of models for a wide range of vehicle segments mainly in Japan and the U.S., but announced a prototype of its new Insight at the Detroit Motor Show in 2018, and has plans to release the vehicle in North America in Summer 2018.

Clarity series Clarity Fuel Cell
Vehicle leasing began in Japan in March 2016, Europe in November 2016, and the U.S. in December 2016. Clarity Electric
Vehicle leasing began in California and Oregon in August 2017. Clarity PHEV
The vehicle was released in the U.S. in December 2017, and in Japan in the summer of 2018. EV concept Urban EV Concept
A city commuter EV. Honda has plan to release production models for the mass markets of Europe in 2019 and Japan in 2020. Sports EV Concept
Honda aims to achieve its next generation sports car design by combining the performance of an EV with artificial intelligence (AI) into a compact body. The production model for the mass market will be released in Europe in the beginning of 2019. NeuV
The vehicle is equipped with AI and autonomous driving technologies, and is assumed to be targeted for ride sharing services.

Hyundai-Kia: Expanded lineup of HVs, PHVs, and EVs for the Ioniq and Niro series

Hyundai Motor plans to introduce 18 new models of environmentally-friendly vehicles, including the Nexo FCV, by 2025. Kia Motors will launch new 16 models (5 HEVs, 5 PHEVs, 5 EVs, and 1 FCV) by 2025; the FCV will be launched in 2020.

Hyundai-Kia sells electric vehicle models mainly in Korea and the U.S. From 2016 Hyundai-Kia will expand its lineup of the Hyundai Ioniq series and Kia Niro series to include HV, PHV, and EV variants to aggressively expand its presence in the European electric vehicle market. In addition, Hyundai has been promoting the expansion of its lineup of electric vehicles, announcing its Nexo FCV at the CES in January 2018, HV and PHV variants of its new Sonata at the Chicago Motor Show in February, and its Kona EV compact SUV at the Geneva Motor Show in March.

Hyundai

Ioniq series The Ioniq series includes HV and EV variants, launched in 2016, and a PHV variant, launched in 2017, based on a common electrified vehicle platform. Nexo FCV The Nexo FCV was unveiled at the CES 2018. The Nexo FCV model replaced the Tucson FCEV that was discontinued in 2017. The Nexo FCV is scheduled to go on sale in selected global markets from the beginning of 2018. Kona Electric The Kona EV subcompact SUV was announced at the Geneva Motor Show in 2018. The vehicle is being launched in Korea in April, and will be released in Europe in July.

GM: Launched EVs in 2017, targeting the North America and China markets

GM sells PHV and HV models primarily in the North America and China markets. In 2017 GM entered the EV market, releasing the Chevrolet Bolt in North America and the Baojun E100 in China. According to a GM press release, approximately 25% of the company's 2017 sales of EVs and PHVs in the U.S. were attributed to three models, the Chevrolet Bolt, Chevrolet Volt, and the Cadillac CT6 Plug-In. In China, GM sells the Baojun E100 , and other models such as the Buick Velite 5 PHV.

GM plans to release at least 20 new electric models by 2023.

Chevrolet

The Volt is a compact PHV hatchback. In the fall of 2015, GM released the second generation Volt in California and Oregon, and in 2016 released the 2017 model nationwide. The Bolt is a compact EV, launched in California and Oregon in December 2016. GM began selling the Bolt nationwide from August 2017. GM plans to increase the production of the Bolt at its Orion plant beginning in the second half of 2018.

GM had previously sold its Chevrolet Volt PHV model in Europe as the Opel Ampera, but discontinued sales 2015, and is not selling its sibling vehicle, the new Volt. GM agreed to sell its European operations (Opel / Vauxhall) to PSA in March 2017. Currently it supplies the Chevrolet Bolt EV to PSA, which sells it as the Opel Ampera-e.

Ampera-e The sibling vehicle of the Chevrolet Bolt, the Opel Ampera-e, was launched in Norway in April 2017, then released in Germany, the Netherlands, and Switzerland.

Ford: Introducing 13 new electrified vehicle models by 2020

In December 2015, Ford announced that it will invest USD 4.5 billion, and introduce 13 new electrified vehicle models by 2020. In 2020, Ford anticipates that 40% of its entire vehicle lineup will be comprised of electrified vehicles. In January 2017, Ford announced descriptions for 7 out of the 13 new electrified vehicle models that it will introduce (see table below).

In March 2018, Ford announced its plans to increase the sales ratio of its trucks and SUVs from the current 70% to 86% by 2020. Its plans include increasing the number of its SUVs from the current 6 models to 8 models within the next 2 years. A 4-door electric SUV with a design reminiscent of the Mustang and HV variants of other SUVs are in development.

Electric SUV A small electric SUV, planned for release in 2019.
Ford's plans for its Model E series include the development of a series of models with electrified vehicle specifications (EVs, HVs, and PHVs) available in a variety of body types (e.g. passenger cars, SUVs). Transit Custom Plug-in Hybrid The Transit PHV commercial van is sold in Europe. The Transit Custom PHV is scheduled to be released in 2019. F-150 Hybrid Produced at Dearborn Truck Plant, Michigan, the F-150 HV is planned to be released in 2020. The vehicle will be sold in North America and the Middle East. Mustang Hybrid The vehicle is scheduled to be released in North America in 2020. Autonomous Vehicles Ford plans to develop automated vehicles with HV specifications for the ride sharing services market. The vehicles will be assembled at Ford's Flat Rock plant, and are scheduled to go on sale in 2021. The vehicles will be introduced initially for the North American market. Electric police vehicles Ford plans to introduce two EV models of police vehicles. In November 2017, the company announced PHVs based on the Fusion for police and government vehicles, which it plans to launch in the summer of 2018.

Ford has launched HV and PHV variants of the Fusion and C-MAX, as well as the Focus EV, but these vehicles are sold mainly in the U.S. In China, Changan Ford has been selling the Mondeo HV, but in March 2018 plans to introduce a PHV variant and discontinue sales of the Mondeo HV. Also, in November 2017 Ford announced its electrified vehicle strategy for the Middle East, and over the next four years plans to introduce four new HV models including HV versions of the F-150 and Fusion.

Fusion The midsized Fusion HV ( Fusion Hybrid ) sedan and the Fusion PHV ( Fusion Energi ) will be assembled at Ford's Hermosillo plant in Mexico and sold in the United States. Ford also has been selling HVs in Mexico since 2017. C-MAX The C-MAX is a compact MPV. The C-MAX HV ( C-MAX Hybrid ) and PHV ( C-MAX Energi ) are assembled at Ford's Wayne plant in Michigan and sold in the U.S. The PHV version will be sold in the Netherlands until 2015. In 2016 a small volume of C-MAX HV units were sold in the Netherlands and in Germany. Focus The compact Focus EV ( Focus Electric ) model is assembled at Ford's Wayne plant in Michigan, and sold primarily in the U.S., with a small quantity being sold in Norway. The next model will be launched in 2019 in parallel with the model change of the Focus base vehicle. Mondeo The midsized Mondeo HV sedan will be released in Europe at the end of 2014 and in China at the end of 2016. In China, sales of the Mondeo HV were discontinued with the release of the Mondeo PHV in March 2018.

Lincoln

In North America, Ford is selling the Lincoln MKZ Hybrid, which shares the hybrid system adopted for the Ford Fusion Hybrid. At the New York Motor Show at the end of March 2018, Ford announced that the first PHV in its Lincoln brand lineup will be its Lincoln Aviator luxury SUV (to be released in 2019).

The midsized MKZ sedan is assembled at Ford's Hermosillo Plant in Mexico and sold in North America. The Lincoln MKZ Hybrid shares the same HV system adopted for the Ford Fusion Hybrid. Aviator The Aviator is a full-sized crossover SUV that was announced at the New York Motor Show in 2018, and scheduled to be released in 2019. The Aviator will be the first PHV in the Lincoln brand model lineup.

Status of the introduction of electric vehicles by foreign-owned OEMs in China: Responding to China's New Energy Vehicle (NEV) policies

In response to a series of automotive policies such as the "Corporate Average Fuel Consumption (CAFC) and New Energy Vehicle Credits" system announced by the Chinese government in 2017, foreign-owned OEMs have announced plans to strengthen their businesses related to NEVs.

German OEMs plan to simultaneously introduce new EV and PHV models to the Chinese and European markets. GM introduced the Baojun E100 EV in 2017 and the Chevrolet Bolt EV in 2018. Toyota will add PHV and EV variants of its best-selling Corolla and Levin HV models. Honda plans to introduce EVs in 2018.

There is also significant activity in the establishment of new joint ventures with local Chinese automakers to strengthen the NEV business of foreign-owned OEMs. VW will launch a new brand of EVs with Jianghua Auto (JAC) in 2018, and Ford plans to start joint EV production with Zotye Auto from 2019. In addition, BMW is planning to partner on the business of MINI brand EVs with Great Wall Motor (GWM), and Renault is partnering with Brilliance Auto on the business of EVs for light commercial vehicle (LCV) applications.

Status of the introduction of EVs to the Chinese market by foreign-owned OEMs (key models highlighted)

Joint Venture Partner Dongfeng Changan SAIC VW Tiguan L PHV (2018-)
SAIC VW Phideon (PHV, plan)
SAIC VW E-Lavida (EV, 2019-)
SAIC Skoda Kodiaq PHV (2018-)
SAIC Skoda Superb PHV (2019-) * FAW Audi A8L (HV, 2018-)
FAW Audi A6L e-tron (PHV)
I.D. (2020-)
I.D. CROZZ (2020-)
I.D. BUZZ (2022-) GAC Toyota Camry HV
GAC Toyota Levin HV,
* Levin PHV (2019-),
Levin EV (plan)
* GAC Toyota C-HR EV (2020-)
* GAC ix4 (EV, 2018-) Honda Dongfeng Honda CR-V HV
Dongfeng Honda Spirior Sport (HV)
new compact EV (2018-) GAC Honda Accord Sport (HV)
* Everus new EV (2018-) Suzuki Zinoro 60H (PHV)
Zinoro 1E (EV)
BMW Brilliance 5 Series PHV (2018-)
BMW Brilliance X1 PHV
* BMW Brilliance iX3 EV (2020-) MINI brand EV (2019 plan) BMW i3 (EV)
BMW i8 (PHV)
BMW X1 PHV
BMW X5 PHV
BMW 5 Series PHV
BMW 7 Series PHV Daimler Denza 400 (EV)
Denza 500 (EV) Mercdes-Benz GLE500e (PHV)

Source: Created by MarkLines based on OEMs website, press releases and media reports (as of March 2018)
Remark: * Added model names announced at the Beijing Motor Show (April 2018)

Major electrified models in China (Sales volume: units)

Group Brand Model Segment EV/HV/
PHV/
FCV Beijing EC180 4,128 77,628 Toyota FAW Toyota Corolla/New Corolla 59,443 Geely 7,814 9,091 42,342 Toyota GAC Toyota Levin 3,166 25,932 40,799 Song DM SUV
(Class C) 30,911 7,463 24,198 1,426 15,639 23,601 Geely Emgrand Emgrand Unclassified 23,324 29,707 21,868 20,738 Roewe SUV
(Class D) 19,510 Beijing Senova 17,060 38,035 18,676 Chery Chery 18,554 Zotye Zotye 13,154 16,751 9,569 15,825 SUV
(Class C) 18,169 31,405 14,592 Changan/Chana Changan/Chana Benni 12,923 5,976 12,118 Baojun 11,446 HAWTAI HAWTAI EV160 11,397 Zotye Zotye Cloud 100 15,467 16,417 11,205 Roewe SUV
(Class D) 10,436 8,125 20,605 10,215 Chery Chery 7,262 14,936 9,925 Geely KANDI 1,499 9,347 Roewe 8,925 Changan/Chana Changan/Chana Benni Mini 8,124 Dongfeng Dongfeng Junfeng 7,832 Suzuki Changhe Suzuki Wagon R+ 7,600 Lifan Lifan 5,888 6,110 Haima Haima (Zhengzhou) Aishang 5,804 Zotye Zhima 3,471 5,716 Unclassified HV/EV 5,291 Changan/Chana Changan/Chana Eulove 5,010 10,656 4,886 Daimler Denza Denza 2,958 2,287 4,713 Beijing Senova 4,242 Toyota GAC Toyota Camry 6,755 5,654 4,150 Geely KANDI 1,945 6,862 4,122 SUV
(Class C) 4,013 Changan/Chana Changan/Chana 3,383 7,961 3,135 Roewe 2,910 Renault・Nissan Dongfeng Nissan Murano SUV
(Class D) 2,812 Dongfeng Fengshen 2,561 Zotye Zotye Cloud TT Unclassified 1,984 3,957 2,537 Roewe 10,711 15,145 2,455 Dongfeng Dongfeng Sokon Dongfeng Sokon Unclassified 2,302 Buick LaCrosse/New LaCrosse 1,195 2,223 2,158 SUV
(Class C) 2,102 Cadillac SUV
(Class D) 1,991 BMW Brilliance SUV
(Class C) 1,915 Guangzhou Trumpchi SUV
(Class C) 1,863 Chery Chery Arrizo 1,647 Geely Emgrand Emgrand Unclassified 1,542 Buick Velite 5 1,499 Unclassified HV/EV 1,037 Dongfeng Dongfeng Succe 1,020 Cadillac Geely Volvo Cars Guangzhou Trumpchi Guangzhou Trumpchi Zotye Zotye Geely KANDI iEV6S SUV
(Class B) 2,945 Dongfeng Dongfeng Pickup
Truck Geely KANDI 12,133 3,185 Yulon Liebao Liebao SUV
(Class C) Beijing Geely Emgrand 17,181 Dongfeng Dongfeng Junfeng ER30 4,347 Chery Chery 6,885 2,384 Geely Geely Panda (LC-1) 10,479 Zotye Zotye 6,385

Source: MarkLines yearly sales figures by model

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Keywords
Toyota, Honda, Hyundai-Kia, GM, Ford, electrification, electric vehicles, EV, PHV, HV, FCV, IC, Plug-in, hybrid, fuel cell, internal combustion

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