Subsidies are zero, what else do new energy vehicles rely on to move forward?

The Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission recently jointly issued the "Notice on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles in 2022" (hereinafter referred to as the "Notice"), which clearly states that the subsidy standard for new energy vehicles in 2022 will decline by 30% on the basis of 2021; the subsidy standards for vehicles that meet the requirements in the fields of urban buses, road passenger transport, taxi (including online car-hailing), sanitation, urban logistics and distribution will be reduced by 20% on the basis of 2021.

It is worth noting that the Notice points out that the subsidy policy for the purchase of new energy vehicles was terminated on December 31, and vehicles licensed after December 31, 2022 will no longer be subsidized. This means that the new energy vehicle subsidy policy implemented since 2009 has fully withdrawn into the countdown.

(Wen 丨 Reporter Lu Qixiu Intern Reporter Lin Shuijing)

The long-term growth trend has not been affected

In fact, according to the original policy concept, new energy vehicle subsidies should be withdrawn in 2020. However, at that time, due to multiple factors such as the new crown epidemic, China's automobile market declined. In order to boost market consumption, in April 2020, the Ministry of Finance and other four ministries and commissions issued the "Notice on Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles", proposing to smooth the intensity and rhythm of the decline and extend the implementation period of the subsidy policy to the end of 2022.

In 2021, the new energy automobile industry still achieved substantial growth in the face of adverse effects such as the spread of the global epidemic and chip shortage, with production and sales reaching 3.023 million units and 2.99 million units from January to November, respectively, an increase of 1.7 times year-on-year, and the market penetration rate of new energy passenger cars reached 19.5% in November. New energy vehicles have entered a new stage of explosive growth, and have shifted from being mainly policy-driven in the past to being market-driven. This has created a favorable environment for the orderly decline of subsidy policies.

The "Notice" makes it clear that the subsidy policy in 2022 maintains the energy density, mileage, energy consumption and other technical indicator thresholds of the power battery system unchanged to stabilize the expectations of enterprises. The subsidy standard for pure electric passenger cars with a cruising range of 300 km to 400 km will be reduced from 13,000 yuan in 2021 to 9,100 yuan, a decrease of 3,900 yuan; the subsidy standard for pure electric passenger cars with a range of more than 400 km is 12,600 yuan, which will be 5,400 yuan less than last year's 18,000 yuan.

Some car companies immediately responded to the pressure of subsidy decline through price increases or limited-time price insulation strategies. Industry insiders believe that the fluctuation of car prices in the short term has an impact on consumer purchase behavior, but the industry has long had a consensus on the withdrawal of subsidy policies, which will not inhibit the long-term development trend of the industry. The China Automobile Association predicts that China's new energy vehicles will continue to maintain rapid growth this year, and annual sales are expected to exceed 5 million, an increase of 47% year-on-year.

Subsidy policies have spawned the world's largest market

The subsidy policy for new energy vehicles can be traced back to the beginning of the industry. In 2009, in order to support emerging industries, the central government subsidized the promotion and application of new energy vehicles.

The reporter combed the statistics, the Ministry of Industry and Information Technology has issued a number of batches of new energy vehicle promotion and application subsidy funds liquidation review, from 2009 to 2020, 12 years, the central financial subsidy funds have invested more than 120 billion yuan. Coupled with local financial subsidies over the years, subsidies for the construction of charging and replacing infrastructure, etc., the amount of subsidies in China's new energy automobile industry is as high as hundreds of billions of yuan.

Along with this, in the past 12 years, the annual sales of new energy vehicles have increased by 262 times, from 5209 units in 2009 to 1.367 million units in 2020. As a result, China has become the world's largest new energy vehicle market, and its production and sales have ranked first in the world for seven consecutive years.

During this period, in order to support the healthy development of the industry and enhance the core competitiveness, China's new energy vehicle subsidies have raised the entry threshold, requiring non-private users to purchase new energy vehicles with a cumulative mileage of more than 30,000 kilometers, and the key performance indicators of the product are also inclined to the direction of high technology and high endurance.

Under the guidance of policies, the current cruising range of mainstream new energy vehicles in China has been increased to 500 kilometers. At the same time, China has built the world's most complete new energy vehicle industry chain, and the scale and technical level of key components industry are at the forefront of the world, especially the battery energy density has been doubled and the cost has decreased year after year, ensuring the continuous breakthrough of New Energy Vehicles in China.

The development of new energy vehicles has been deeply rooted in the hearts of the people

Although subsidies have declined, the policy's determination to support new energy vehicles has not changed. At the national level, the "Carbon Peak Action Plan before 2030", "New Energy Vehicle Industry Development Plan (2021-2035)", "Notice on Launching the Demonstration Application of Fuel Cell Vehicles" and other top-level designs have made it clear that new energy vehicles are the future development direction.

In particular, the "Measures for the Parallel Management of Average Fuel Consumption of Passenger Car Enterprises and New Energy Vehicle Credits", which has been trial for nearly 4 years, commonly known as the "double credit" policy, is considered to be the "baton bearer" after the subsidy is withdrawn. According to this policy, in addition to reducing fuel consumption to obtain positive fuel consumption points, automakers must also sell a sufficient number of new energy vehicles to obtain corresponding new energy credits. This move is intended to subsidize new energy vehicles through fuel vehicles and optimize the structure of the automobile industry by market-oriented means.

In addition to the national level, many places have included new energy vehicles in urban development plans. For example, the "14th Five-Year Plan for the Innovative Development of Intelligent and New Energy Vehicles" recently issued by Guangzhou Proposes to study and introduce policies and measures that are conducive to the promotion and application of new energy vehicles, such as branding, charging and high-speed traffic preferences in the city, and actively promote the large-scale and commercial application of new energy vehicles in related fields. By 2025, the penetration rate of new energy vehicles in Guangzhou will exceed 50%, and the number of ownership will increase to 800,000.

Many people pointed out that the development of new energy vehicles has been deeply rooted in the hearts of the people. New energy vehicles still enjoy preferential policies in terms of investment access design, tax incentives, unlimited purchase restrictions, etc., and the focus of policy support will be further shifted from the purchase end to the user end. Reducing the cost of car purchase, improving the consumer experience, and improving battery recycling will be the focus of the industry's future work.

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Produced by | China Energy News (ID:cnenergy)

Editor 丨Li Huiying