Core Insights - The electric drive system is a critical component of new energy vehicles, responsible for converting electrical energy into mechanical energy, directly influencing vehicle performance, energy efficiency, and reliability [1][14][15] - The market for electric drive systems in China is experiencing explosive growth, with the market size projected to increase from 17.1 billion yuan in 2019 to 151.45 billion yuan in 2024, representing a compound annual growth rate (CAGR) of 54.69% [1][14] - The development of the electric drive system industry is closely linked to the overall prosperity of the new energy vehicle sector, which is expected to continue expanding as the industry moves towards scale and intelligence [1][14] Industry Overview - The electric drive system consists of three main components: the drive motor, controller, and reducer, which are essential for the vehicle's power output and efficiency [5][7] - The electric drive system is categorized into four types based on motor configuration: single motor drive, dual motor drive, hub motor drive, and wheel-side motor drive [6][7] Industry Policies - The Chinese government has implemented a series of supportive policies to promote the development of new energy vehicles and their core components, including electric drive systems [8][9] - Recent initiatives include the Jilin Province's action plan for high-quality development of new energy and intelligent connected vehicles, focusing on key technologies such as high-energy, high-safety batteries and efficient electric drive systems [8][9] Industry Chain - The electric drive system industry chain includes upstream raw material suppliers (e.g., steel, aluminum alloys), midstream system assembly suppliers, and downstream new energy vehicle manufacturers [9][10] Market Growth and Trends - The production of new energy vehicles in China has surged from 340,500 units in 2015 to 12.888 million units in 2024, with a CAGR of 49.74% [13][15] - The electric drive system installation in new energy passenger vehicles is expected to reach 7.758 million units in 2024, a year-on-year increase of 41.72% [15] Key Companies - Major players in the electric drive system industry include Huichuan Technology, Times Electric, Wolong Electric Drive, and Jingjin Electric [2][16] - Wolong Electric Drive Group focuses on the research, production, and sales of motors and controls, with a projected revenue of 9.066 billion yuan in 2024, a decrease of 6% [16][17] - Jingjin Electric Technology is a leading domestic company in electric drive systems, with a revenue of 969 million yuan in the first half of 2025, a year-on-year increase of 78.84% [17][18] Future Development Trends - The integration of electric drive systems is expected to evolve from a "three-in-one" configuration to a more comprehensive "multi-in-one" approach, enhancing efficiency and reducing weight [19] - The industry is moving towards high-voltage platforms (800V and above) to meet fast charging demands, with silicon carbide (SiC) power modules becoming increasingly important [20] - Continuous optimization of electric drive system efficiency will focus on innovative design, materials, and control technologies to minimize energy consumption across all operational scenarios [21]