The development of new energy vehicles has been hampered: insufficient subsidies for car subsidies

In the first half of this year, the production and sales of new energy vehicles in China doubled. With the improvement of people's awareness of environmental protection and product diversification, analysts believe that China's new energy vehicles have changed from policy stimulus to policy and individual demand, but car subsidies have declined, electric vehicle battery life is poor, and charging facilities are built. Insufficient new and old problems still restrict the industry's great development.

The development of new energy vehicles has been hampered: car subsidies have subsided, and charging facilities are insufficient.

China's new energy vehicles are booming in production and sales

According to the statistics of China Association of Automobile Manufacturers, in the first half of this year, the production and sales of new energy vehicles in China reached 177,000 and 170,000 respectively, an increase of 125% and 126.9% respectively. Among them, the production and sales of pure electric vehicles were 134,000 and 126,000, respectively, an increase of 160.8% and 161.6% over the same period of the previous year.

At the 13th China (Changchun) International Automobile Expo (hereinafter referred to as Changchun Automobile Expo), which was closed some time ago, a small number of new energy vehicles on display always attracted many visitors to stop. Jianghuai Heyue, Beiqi E and BYD's various models are the sales leaders of domestic electric vehicles.

At the Changchun Auto Expo site, Guo Ai, the head of the Jianghuai passenger car sales company, said that the sales of Jianghuai new energy models in Beijing and other places are very good, and the minimum configuration is more than 70,000 yuan.

As the first automobile manufacturing plant in China, the Pentium B50, a plug-in hybrid car produced by FAW New Energy Automobile Branch, can drive 50 kilometers with a single charge and sell for about 160,000 yuan. Its vehicle purchase tax is about 14,000 yuan. At present, there are more than 300 such hybrid vehicles running on the road in Changchun City. Dai Dali, general manager of FAW New Energy Vehicles Branch, said that the policy of exempting vehicle purchase tax and vehicle and vessel use tax has really promoted the sales of new energy vehicles.

In addition, fuel-saving and money-saving also attract more consumers to buy hybrid vehicles. "Ordinary gasoline vehicles cost about 0.7 yuan per kilometer, and plug-in hybrid vehicles can achieve 0.4 yuan. From an economic point of view, the savings are not small." Dai said.

Changchun citizen Deng Bo has been driving a Toyota Prius hybrid for three years. Deng Bo travels about 50 kilometers a day to and from the company. He said that driving the Prius can save two or three hundred yuan per month. "A box of oil is more than 200 yuan, the Prius can run about 700 kilometers, the ordinary gasoline car can run 400 kilometers, and can save 10 yuan a day." And the Prius's built-in hybrid system makes it unnecessary to charge, which is more convenient to use.

New and old problems hinder industry development

At this year's Changchun Automobile Expo, most of the car companies did not exhibit new energy vehicles. The main reason is that the cold weather in winter in Northeast China will affect the endurance of new energy vehicles, but car companies have been committed to research and development in this area. Guo Ai revealed that Jianghuai is constantly optimizing the technology of electric vehicles, the mileage of new models will increase, and the ability to adapt to temperature will be enhanced. “It is more suitable for colder weather in northeast and other places”.

In addition, the high price of new energy vehicles is also an indisputable fact. Take Honda Fit as an example, the hybrid version is 100,000 more expensive than the traditional fuel version. Beginning in 2010, Chinese government departments provide car purchase subsidies for consumers who purchase new energy vehicles. The plug-in hybrid passenger car has a maximum subsidy of 50,000 yuan/car; the pure electric passenger car has a maximum subsidy of 60,000 yuan/car. Since 2014, subsidies have also declined year by year.

Despite this, many car companies are accelerating the launch of new electric cars. At the end of March this year, BYD launched two new models of pure electric vehicles, all of which are positioned in compact A-class vehicles. The top executives of FAW Group revealed that its Hongqi brand H7 PHEV model will be officially launched at the end of August this year, and the expansion of FAW Car's new energy vehicle market will also follow.

In response to the subsidy declining mechanism, the car company's strategy is to shift the market driving force from policy to product, such as adapting to market demand and developing new energy SUV. For many years, SUV models have been favored by consumers in China. The Pentium X80 is a popular SUV model of FAW Group. According to reports, the X80's pure electric prototype has been produced, but the time to market has not yet been determined. It is reported that in 2016, eight independent brand car companies will launch a total of 10 electric SUV models, most of which are new energy versions of the released models.

The serious shortage of charging facilities is also a major obstacle to the accelerated development of new energy vehicles in China. Statistics show that as of the end of June this year, China has built 81,000 public charging piles, an increase of 65% from the end of last year; more than 50,000 private charging piles have been built with vehicles, an increase of about 12% from the end of last year. “The investment amount is small and the investment amount is lower than the market expectation” is the official judgment. Some experts believe that with the increase in the use of new energy vehicles, companies will be more willing to invest in charging equipment.

Core technology research and development and promotion of new business models should be strengthened

As a new industry in the world, the development of new energy vehicles around the world is mostly in its infancy. China is in the forefront of the world's new energy vehicle support policies, but in terms of core technology research and development, new business promotion models and charging facilities construction, there are still problems such as insufficient input force, single path, and unclear policy orientation. In this regard, the industry has made the following recommendations.

The first is to accelerate the development of core technologies for new energy vehicles. Experts believe that the development of new energy vehicles in China should not be too hasty, especially in the technical field, and can no longer rely on the foreign technology bought to seize the market. This is not conducive to the long-term development of enterprises, but also to the hidden dangers of the development of new energy auto industry. Among them, the core components of new energy vehicles are critical. At present, there are more than 100 large and small automobile battery manufacturers in China, which should be integrated to realize the scale of the vehicle battery industry.

Secondly, we should strengthen the linkage between technology and market, and explore the commercial promotion model of new energy vehicles that meets China's national conditions and market demand. At present, China's new energy vehicles, whether it is vehicle sales, vehicle rental or battery rental, have encountered many difficulties in the promotion. Experts suggest drawing on the commercial promotion model of Tesla electric vehicles to study consumer psychology and market demand. For example, in the market positioning, first select high-end people, and then penetrate from the high-end to the low-end.

Third, the investment in facilities such as charging piles still needs to be advanced. The lag of the development of charging facilities is one of the most important bottlenecks in the development of new energy vehicles in China, especially restricting the entry of electric vehicles into the homes of ordinary people. From the perspective of foreign development experience, the development of new energy vehicles must be supported by policies in the early stage of industrialization, and the construction of charging piles is also the case. It is recommended that government departments further clarify the guiding policies for the construction of new energy vehicle charging facilities and make strategic planning for this industry.

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