At the end of the year, many new energy vehicle companies and consumers who intend to buy cars are always paying attention to the dynamics of "national supplementation". According to the current national subsidy policy to promote new energy vehicles, the subsidy for new energy vehicles will decline by 30% in 2022, and many consumers are worried about car companies "price increases" next year, and are waiting to buy cars before New Year's Day.
In fact, the subsidy reduction aims to reduce the dependence of the new energy vehicle consumer market on policies. With the "subsidy decline" from next year, what is the impact on the consumption of new energy vehicles? In the face of this new market with huge potential, what opportunities will domestic brands usher in?
Status: In response to the "subsidy decline", the market price is generally stable
According to the Notice on Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles jointly issued by the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission in April 2020, the implementation period of the financial subsidy policy for the promotion and application of new energy vehicles will be extended to the end of 2022, and in principle, the subsidy standards for 2020-2022 will be reduced by 10%, 20% and 30% respectively on the basis of the previous year.
In fact, although so far, the financial subsidy policy for the promotion and application of new energy vehicles in 2022 has not been officially issued, but car companies have made preparations early.
The reporter found that some car companies in the market have chosen to make a fuss around the "national subsidy slope", and guide consumers to grasp the window period of the "last month" in sales. Many consumers can see similar advertisements of brand car dealers in specialty stores and circles of friends.
From the perspective of specific brands, some car companies choose to increase prices in advance, such as Tesla Model 3, according to the technical parameters of Tesla Model 3 and subsidy adjustment coefficient, the amount of new energy vehicle subsidies in 2022 is 12600 yuan, which is reduced by 30% on the basis of 2021. Some car companies balance the loss of subsidy decline by not moving the basic car price but shrinking their rights, such as the need to pay extra when selecting some projects. Of course, there are also many car companies waiting and watching, and have not transferred the cost of subsidy decline to consumers. Overall, the market price is generally stable, and the price increase of some models is also within the expected range.
Industry insiders revealed that the subsidy decline has little impact on car companies, on the one hand, the fluctuation of vehicle prices is not entirely because of the fluctuation of subsidies. On the other hand, there are many well-selling models on the market that do not actually enjoy subsidies.
Taking the ideal car with a manufacturing base in Changzhou as an example, in November alone, the company delivered 13,485 medium and large SUV models Ideal ONE, an increase of 190.2% over November 2020, creating a new record for single-month delivery, which is also the first time that a Chinese brand model with a starting price of more than 300,000 yuan has achieved single-month delivery of more than 10,000 vehicles. From January to November this year, the total delivery volume of ideal cars reached 76,404 units. The ideal ONE, which has now exceeded 110,000 units in cumulative delivery, is a model that does not enjoy subsidies.
In the face of subsidy decline from next year, "speaking with products" has become a consensus in the industry. "The state's industrial policy to encourage the development of new energy is very successful, from the ideal ONE's single model to break through the tens of thousands, new energy vehicles have been from the policy promotion stage, to the market promotion, product promotion stage, so we must continue to provide consumers with satisfactory products to stand and survive." Shen Yanan, co-founder and president of Ideal Auto, said.
Behind: Penetration rate continues to rise, "more than expected growth"
Stimulate endogenous motivation
At a time when subsidies for new energy vehicles have fallen sharply, sales of new energy vehicles are showing a hot trend. According to data from the China Association of Automobile Manufacturers, in November this year, the production and sales of new energy vehicles reached 457,000 units and 450,000 units, respectively, an increase of 1.3 times and 1.2 times year-on-year. The penetration rate of the new energy vehicle market in November was 17.8%, and the cumulative sales penetration rate increased to 12.7% from January to November. Since 2015, China's new energy vehicle production and sales have ranked first in the world for six consecutive years.
Jiangsu is a major province in the production and sales of new energy vehicles, according to enterprise investigation data, Jiangsu new energy vehicle related enterprises reached 32,900, ranking third in the country. The reporter learned from the Automobile Office of the Provincial Department of Industry and Information Technology that as of the end of November, the production and sales of new energy vehicles in the province reached 212,000 units, an increase of 114.28% year-on-year. From January to November this year, the province registered 196051 new energy vehicles, an increase of 218.9% year-on-year, of which 29,697 were registered in November, an increase of 127.96% year-on-year.
The penetration rate of new energy vehicles continues to rise, naturally not only the credit of subsidies, but also the full promotion of governments at all levels in policy, but also benefits from the continuous optimization of the use environment of new energy vehicles, the improvement of technology and services of car companies, etc., so that people are more and more accepting and recognizing new energy vehicles.
Jiangsu hosted the launching ceremony of the national new energy vehicle to the countryside this year, and also successively carried out 6 offline activities such as Liyang, Nanjing Lishui, Lianyungang, Suzhou Xiangcheng, Taixing, Yangzhou, etc., and organized the country's first "Cloud to the Countryside" online activity on the Jingdong live broadcast platform, and vigorously promoted the production of automobile brands in the province such as Ideal, Euler, Jihu, and Datong. In the first 10 months alone, the province produced 175,000 new energy vehicles and promoted the application of 166,000 new energy vehicles, both double the previous year.
It is more straightforward to reassure car owners. By increasing infrastructure construction, various localities have reduced the "mileage concerns" of car owners. From January to October this year, Jiangsu built 63,000 new charging facilities of various types, including 5,963 public charging piles, 2,165 dedicated charging piles, and 55,000 private charging piles. The ratio of new energy vehicles to charging piles in the province has reached 2.46:1, which is better than the national average.
In the context of a variety of factors intertwined, consumers' acceptance of new energy vehicles has become higher and higher, and even "more than expected growth", due to the emergence of such "endogenous power", the market's dependence on policies has been reduced, and the decline of subsidies at the national level is inevitable and necessary.
Outlook: Entering the "Product Warfare" phase,
The rise of Chinese brands uses a good "double-edged sword"
At present, the entire new energy automobile industry is optimistic about the development of the next few years. Looking forward to 2022, Jiangsu has put forward the goal of highlighting the promotion of new energy vehicle brands and models produced in the province, and striving to exceed 200,000 new energy vehicle registrations, accounting for 15% of new car registrations.
As the consumption of new energy vehicles enters a new stage of "product war", how should car companies, especially Chinese car dealers, respond?
The industry generally believes that the decline of subsidies for new energy vehicles is a "double-edged sword" for car companies. In the past, Chinese auto brands rely on low prices in exchange for sales to compete with foreign brands, the future market will usher in a reshuffle, "rely on subsidies to mix days" enterprises will be gradually eliminated, leaving a really skilled, market-recognized brand. On the other hand, this also stimulates new energy vehicle companies to accelerate technical research, break free from the cage of "price war", and launch more cost-effective and competitive models.
In Shen Yanan's view, as new energy vehicles have ushered in a "golden period" of rapid development, the opportunity for Chinese brands has also come. Innovation in product definition and service model is becoming the pursuit of Chinese new energy brands that aspire to "strong rise".
"A deep understanding of the needs of Chinese consumers is the basis for the advantages of China's new power brands to compete with foreign brands in the market." Shen Yanan said in looking forward to the new year that to obtain market recognition and consumer likes, the core is product innovation and model innovation, product innovation refers to understanding the true wishes of family consumers, solving the use concerns of family consumers, and needs to define products according to the needs of Chinese users. In terms of model innovation, Ideal Auto will continue to adopt a direct operation model different from the traditional 4S store, from retail, delivery, service, data management to open up, close and fast service to consumers, "due to the middleman, the cost of product circulation link will be greatly reduced, and the money saved will be better served to enhance the consumer product experience." ”
In the face of the demand for the "rise of domestic goods", in the interview, from the heads of relevant competent departments to the staff of the Automobile Association, they all said that subsidies are not omnipotent, but policy support is necessary, rather than paying attention to whether subsidies are declining or not, it is more important to think about what kind of policy methods to leverage car companies to carry out technological innovation. For example, in the past, subsidy funds always flowed into car companies, relatively speaking, the battery, motor and other enterprises supporting the industrial chain did not get enough support, and this year's "chip shortage" exposed the shortcomings of the industrial chain supply chain. Industry insiders suggest that in the future, subsidy funds can also enter more supporting enterprises, improve all aspects of the industrial chain in a targeted manner, and enhance the resilience of both ends of production and marketing.
Source: Xinhua Daily, intersection reporter Fu Qi
Editor: Yidan Xu
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