Financial Associated Press (Shanghai, editor Hu Jiarong) - The recently adjusted auto sector showed signs of rebound in early trading on Wednesday, with Ideal Automobile (02015.HK), Xiaopeng Automobile (097868.HK) and Guangzhou Automobile Group (02238.HK) rising more than 8%, and BYD (01211.HK) and Geely Automobile (00175.HK) also rising more than 3%.
The rally in the auto sector today is related to the policy moves revealed by the China Passenger Transport Association on Tuesday. According to the policy of the Federation of Passenger Transporters, the current technical indicator system framework and threshold requirements for purchase subsidies will remain unchanged in 2022, and the subsidy scale will not be locked from the original expected upper limit of 2 million subsidies, and the subsidies will be realized throughout 2022. With the doubling of the scale of the new energy industry chain and the improvement of cost reduction capabilities, it is expected that the increase in new energy vehicles at the end of 2022 will be considerable.
At the same time, the Association of Passenger Vehicles said that the original sales of new energy passenger vehicles in 2022 were expected to be 4.8 million, and should now be adjusted to more than 5.5 million, and the penetration rate of new energy passenger vehicles has reached about 25%. New energy vehicles are expected to exceed 6 million, and the penetration rate of new energy vehicles is about 22%. The stability of policy subsidies will inevitably promote the surge in China's total sales of new energy vehicles in 2022 and continue to maintain a super leading position of more than 50% of the world's share. **
In fact, with the gradual decline of state subsidies for new energy vehicles, some investors cannot help but be a little worried. On January 1, 2022, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Development and Reform Commission jointly issued the Notice of the Development and Reform Commission of the Ministry of Industry and Information Technology of the Ministry of Finance on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles in 2022, which clearly pointed out that the subsidy policy for the purchase of new energy vehicles was terminated on December 31, 2022, and the vehicles licensed after December 31 were no longer subsidized.
Although the subsidy policy will end in 2022, there are still some new energy vehicle companies that have launched a limited-time insulation policy in order to continue to expand sales, for example, WEILAI recently announced a car purchase subsidy plan: pay a deposit to buy ES8, ES6 and EC6 before December 31, 2021 (inclusive), and users who pre-31 March 2022 can still enjoy subsidies in accordance with the 2021 national subsidy standards, and the difference is borne by NIO.
For the outlook for new energy vehicles in 2022, relevant institutions are optimistic about the future development of new energy vehicle companies. Anxin Securities released a research report today that the traditional car and new energy vehicle industries will improve in 2022. In terms of new energy vehicles, the subsidy policy in 2022 will keep the technical indicators and threshold requirements unchanged, while the subsidy scale does not lock in the original expected upper limit of 2 million vehicles, and the subsidy will run through the whole year.
Anxin also predicts that the expansion of the scale of new energy vehicles and technological progress will bring about a continuous improvement in cost reduction capabilities; at the same time, with the implementation of subsidies and the rise in raw material prices, the prices of some models have been raised, but consumer demand is still not reduced, and the production and sales of new energy vehicles are expected to continue to grow in 2022.