5 Million Vehicle Markets to Be Broken in Auto Market

5 Million Vehicle Markets to Be Broken in Auto Market


On August 5th, the Ministry of Industry and Information Technology held an exposition plan for exemption of purchase tax policies for new energy vehicles. At the meeting, the Ministry of Industry and Information Technology specified the specific policy requirements and reporting procedures for new energy models that were exempt from purchase tax, and announced that it would begin accepting applications from car manufacturers. "At the end of this month, the first "catalogue of new energy vehicle models exempted from vehicle purchase tax" is expected to come out," said the relevant person in charge of the Ministry of Industry and Information Technology.

According to statistics, in the first half of the year, the production and sales of new energy vehicles in China exceeded 20,000, and this year is expected to exceed 50,000 vehicles. However, there is still a long way to go from the goal of “Energy-saving and New Energy Vehicle Industry Development Plan (2012-2020)” (hereinafter referred to as “Planning”). According to the plan, the sales of new energy vehicles in China will reach 500,000 in 2015 and 5 million in 2020.

In July, 4 new energy car stimulation policies

According to the current national application plan for the promotion and application of 88 new energy vehicles, by the end of 2015, the goal is to promote 330,000 vehicles; and according to the above “planning”, by 2015, the cumulative production and sales volume of new energy vehicles nationwide will strive to reach 500,000 vehicles.

However, in fact, the sales of new energy vehicles in the first half of this year just exceeded 20,000 units, while the sales volume last year was only 20,000 units, which is quite different from the target.

However, the recent intensive introduction of a series of favorable policies has enhanced market information. CITIC Securities believes that relying on government subsidies in the scale of 10 billion, the promotion target of 500,000 vehicles will have a high probability of implementation, and the target of achieving 5 million vehicles by the end of 2020 will depend on technological progress and the reduction in costs after the policy withdrawal.

“Starting from September this year, the stimulus policies and the concentrated release of consumers’ purchasing power through the use of Yaohao to obtain new energy car purchases may bring a 'tail-watching' effect to the promotion of Beijing's new energy vehicles.” Beijing Municipality is responsible for new energy vehicles. The promotion person told reporters.

The reporter combed and found that in the past July, the relevant departments have continuously issued four favorable policies. The latest policy is the "Notice on Issues Concerning the Pricing Policy for Electric Vehicles" issued by the National Development and Reform Commission on July 30. The "Notice" clearly states that the electric vehicle charging and changing facilities use electricity to implement the supportive electricity price policy. The exchange facilities will be exempted from basic electricity charges until 2020, and residential facilities such as residential homes and residential communities will use electricity to implement residents' electricity prices. According to the analysis, with cost accounting, an electric vehicle that is fully charged and consumes 10 kWh of electricity will have a much lower cost of use than a fuel-powered vehicle.

Previously, the new energy vehicle stimulus policy was launched in a centralized manner almost every week. On July 9, the executive meeting of the State Council decided that from September 1 this year to the end of 2017, the purchase tax for new energy vehicles will be exempted; on July 13, the State Administration Bureau, the Ministry of Finance, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, and the National Development and Reform Commission jointly The government and public agencies announced plans for the purchase of new energy vehicles. On July 14, the General Office of the State Council issued the "Guiding Opinions on Accelerating the Popularization and Application of New Energy Vehicles," and proposed 30 specific policies and measures in eight areas.

Wang Binggang, head of the National 863 “Energy-saving and New Energy Vehicle” Major Project Supervision and Consultation Expert Group, stated that the centralization of new energy vehicle promotion policies is that the Central Government and related departments have conducted surveys on the promotion of some cities and organized the promotion of various cities. After the work conference, it was found that many cities and enterprises were faced with policy confusion. The introduction of policies was the result of sorting out the results of the survey and implementing the new policy.

The auto makers are rushing to the beach of new energy bus market. “The favorable policy behind highlights the government's determination to promote new energy vehicles. The next key is to look at the products.” An Qingheng, deputy director of the China Automobile Industry Advisory Committee, told reporters that most of the current joint venture brands It is still in a wait-and-see state, so the self-owned brands of new energy vehicles are more likely to seek breakthroughs in this area through policy “dividends”, among which the promotion in the private market is the key to their marketability, and the product and profit model is to a certain extent. The decision on the next direction of new energy vehicles.

It is worth mentioning that in the newly issued declaration catalog for purchase tax relief, there is no explicit requirement for manufacturers. "If you meet the reporting conditions, you can enjoy the purchase tax reduction," said the person in charge of the Ministry of Industry and Information Technology.

Since last year, Tesla has entered the Chinese market; this year, BMW, Volkswagen, Nissan and other brands in the domestic new energy vehicle market layout. Following traditional automobiles, the competition between joint-venture brands and self-owned brands has further expanded into new energy markets.

“After the policy is clear, foreign and joint ventures will accelerate the introduction of new energy models into the domestic market.” An Qingheng told reporters, but the self-owned brand models have advantages such as production subsidies in the new energy vehicle market, although currently with the joint venture brands. The product is not in the same market range, but the competition for product layout has begun.

In this regard, BYD relevant responsible person said that the independent brand in the new energy vehicle market layout for many years, the short-term independent brand is still the main body of the "planning" goal.

The head of SAIC New Energy Automobile Sales stated that SAIC is actively seizing the new energy official car market. Recently, SAIC Motor launched the first batch of 10 Roewe 550 plug-in hybrid vehicles to serve as police vehicles in Shijiazhuang City. In addition, Shanghai will also launch new energy police cars in bulk. It is reported that SAIC Motor will also carry out new energy car rental business. At present, it has reached preliminary opinions with its partners in the Beijing market.

In addition, independent brands such as JAC, BAIC New Energy and BYD also hope to popularize in the official car market, enhance product competitiveness, and prepare for the deployment of the private consumer market.

According to statistics, at present, China's new energy vehicles are selling nearly 20 models, and it is expected that nearly 30 new models will be launched in the next two years.



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