Electric car is the new trend in Global market?

Source: Beijing Business Daily

The new energy vehicle market is booming. On August 19, the Ministry of Commerce held a regular press conference. Gao Feng, a spokesperson for the Ministry of Commerce, said that as China’s economy continues to recover steadily, residents’ consumption concepts are gradually changed, and the conditions and environment of new energy vehicles continue to improve. China’s new energy vehicle market potential will continue to be released, and the market penetration rate of new energy vehicles will further increase. , Sales are expected to continue to grow.

Gao Feng revealed that the Ministry of Commerce, in conjunction with the Ministry of Industry and Information Technology and other relevant departments, actively promote related work. One is to organize a new round of promotion activities such as new energy vehicles going to the countryside. The second is to promote the introduction of policies and measures to promote the consumption of new energy vehicles. Encourage and guide all localities to reduce restrictions on the purchase of new energy vehicles by improving license indicators and relaxing license application conditions, and create more convenience for the use of new energy vehicles in charging, transportation, and parking. Third, continue to guide vehicle electrification in key areas. Various localities have adopted various measures to strengthen the promotion and use of new energy vehicles in public areas such as public transportation, leasing, logistics and distribution.

According to data from the Ministry of Commerce, from January to July this year, the sales of new energy vehicles by my country’s auto manufacturing enterprises were 1.478 million, a year-on-year increase of two times, exceeding the record high of 1.367 million in 2020. The sales of new energy vehicles accounted for 10% of the sales of new vehicles of manufacturing enterprises, a year-on-year increase of 6.1 percentage points. In the first half of this year, the proportion of personal purchases of new energy vehicles exceeded 70%, and the endogenous power of the market was further enhanced.

On August 11, the data released by the China Association of Automobile Manufacturers also showed that in the first seven months of this year, the cumulative sales of domestic new energy vehicles exceeded the domestic sales of previous years, and the penetration rate rose to 10%. Previously, data released by the Passenger Car Market Information Joint Conference also showed that the retail penetration rate of new energy passenger cars in the first seven months of this year reached 10.9%, which was significantly higher than last year’s 5.8%.

“Beijing Business Daily” reporter noted that the penetration rate of domestic new energy vehicles rose from 0% to 5%, which lasted as long as ten years. In 2009, the domestic production of new energy vehicles was less than 300; in 2010, China began to subsidize new energy vehicles, and by 2015, the production and sales of new energy vehicles exceeded 300,000. With the gradual increase in sales, the shift from “policy support” to “market-driven” for new energy vehicles has been put on the agenda. In 2019, subsidies for new energy vehicles began to decline, but then sales of new energy vehicles began to decline. By the end of 2020, the penetration rate of new energy vehicles will barely maintain at 5.8%. However, after a short “pain period”, new energy vehicles have resumed rapid growth this year. In just six months, the penetration rate has increased from 5.8% to 10%.

In addition, the Ministry of Finance recently issued several replies to some of the suggestions made at the Fourth Session of the 13th National People’s Congress, revealing the direction of the next step for the financial support market to focus on hot areas. For example, the Ministry of Finance’s reply to Recommendation No. 1807 of the Fourth Session of the 13th National People’s Congress mentioned that the central government will continue to vigorously support scientific research institutes to carry out technological innovation in the field of new energy vehicles in the next step.

The first is to support relevant central research institutes in the field of new energy vehicles to carry out independent topic selection research through basic scientific research business fees. Relevant research institutes can independently carry out technological innovation in the field of new energy vehicles in accordance with national strategic deployment and industrial development needs. The second is to support scientific research in related fields through the central science and technology plan (special projects, funds, etc.). Eligible scientific research institutions can apply for funding in accordance with the procedures.

Regarding supporting enterprises to carry out scientific and technological research and development activities, the central financial innovation support method adopts the funding model of “implementation first, appropriation later”. Enterprises invest in and carry out various scientific and technological activities first, and then grant subsidies after passing the acceptance, so as to guide enterprises to truly become technological innovations. The main body of decision-making, R&D investment, scientific research organization and achievement transformation.

Post time: Aug-23-2021