2022 Hundred People's Meeting 丨Xilis Zhoulin: It is recommended that EVR not pay consumption tax and reflect statistics separately

On March 25-27, 2022, the China Electric Vehicle 100 Forum (2022) was officially held. With the theme of "Meeting the New Stage of Market-oriented Development of New Energy Vehicles", the conference conducted in-depth discussions on many challenges and opportunities such as the development of the new energy automobile industry, double carbon targets, climate change, supply chain adjustment, in-depth application of information technology and intelligent technology, change of human travel mode, competition and cooperation among major countries, etc.

At the new generation of automobile market and consumption forum held on the morning of the 27th with the theme of "Exploring market paths and consumption changes", Zhou Lin, general manager of Xilis product line, delivered a speech around the theme, and the main views were as follows:

1. EVR meets various working conditions, and does not rely too much on supporting facilities, while reducing the pressure on battery supply;

2. The new DE-i technology can realize 3.2 kWh of oil per liter, and the total endurance of WLTC in full oil state reaches more than 1100 kilometers;

3. It is recommended that EVR not pay consumption tax and reflect statistics separately.

The following is a transcript of the speech:

Hello leaders and experts! I am Zhou Lin of Xilis Motors. It is a great honor to participate in the "100 People's Association New Generation Automobile Market and Consumption Forum", and the title of my speech is "Extended Range Electric Vehicles Have Great Achievements".

First of all, to introduce the company's situation, Xiaokang Group was founded in 1986, is a new energy vehicles as the core business of the technology company, is from traditional cars to intelligent vehicles, from traditional manufacturing to intelligent manufacturing transformation and upgrading, the pursuit of high-quality development, to achieve the vision of "becoming a global intelligent car brand enterprises" and strive to move forward. The group employs more than 15,000 people and is an A-share listed company and one of the top 500 Chinese enterprises.

First, the EVR technology route is the choice of the industry and users

(1) The transportation industry is carbon neutral and requires diversified new energy vehicle technology routes.

At present, transportation emissions account for about 10% of the total carbon emissions of the mainland, especially road transport, which currently accounts for more than 85% of the total carbon emissions of transportation in the country, and is the absolute main body and focus of emission reduction in transportation carbon emissions.

At the same time, by the end of 2021, the number of motor vehicles in the country will reach 395 million, of which the number of new energy vehicles in the country will reach 7.84 million, accounting for 2.6% of the total number of vehicles. As conventional fuel vehicles using fossil fuels still dominate, carbon neutrality in the mainland transportation sector faces greater challenges.

The "Carbon Peak Action Plan before 2030" issued by the State Council proposes that "accelerating the formation of a green and low-carbon transportation mode, and large-scale promotion and use of new energy vehicles is an important way to promote carbon neutrality in the transportation industry". In the new energy vehicle technology route, pure electric (EV), plug-in hybrid (PHEV) and range extender (EVR) models have been widely recognized by the market. Fuel cell vehicle (FEV) technology is also advancing, and related car companies are working hard to promote the process of industrialization.

(2) In the current situation, the necessity of developing EVR

China is a vast country, EVR is the best new energy vehicle solution at this stage, EVR because it has its own advantages that EV does not have: First, it is a full-time electric drive, it has the same driving performance as EV. Second, the urban working conditions basically do not need to start the range extender, has been using pure electric driving; third, in the long-distance travel, the endurance is guaranteed, can effectively solve the current EV users generally concerned about the range anxiety, charging anxiety, battery life anxiety, and battery safety and other issues.

In the supporting facilities of new energy vehicles, there is a phenomenon of "no pile with car, pile without car". On the one hand, electric vehicles in some areas grow faster, but the charging facilities are insufficient; on the other hand, coupled with the unreasonable layout of some charging facilities and poor versatility, the utilization rate is low. For example, during last year's National Day, "8 hours of driving and pure electric cars need to take 16 hours to complete, high-speed charging queues" and other events have been hotly discussed!

The development of EVR can reduce the pressure on battery supply, at present, the new energy automobile industry is facing the situation of "lack of core and less electricity", lithium ore, cathode and negative electrode materials and other battery basic raw materials prices have risen. Compared with the same level of models, the battery installed capacity of the EVR is only 30-35% of the EV.

EVR can promote the transformation and upgrading of transmission engines and develop into an intelligent range extension system integrating engines, generators, reducers and controllers.

(3) EVR technology has made outstanding progress

In the face of the "double carbon target", car companies have accelerated technology iteration and developed new technologies and systems to further enhance the safety, energy saving and environmental protection of new energy vehicle products.

Since the development of high-end intelligent electric vehicles in the global layout in 2016, Xiaokang Group has invested more than 10 billion yuan in total, cultivated and formed core technologies such as electronic control and electric drive with independent intellectual property rights, as well as differentiated intelligent range-extending technologies in line with China's national conditions.

On December 2, 2021, Xilix released the Cyrus Pure Electric Drive Range Extended Range Platform (DE-i), which raises the advanced technology and reliability of EVR technology to a new height.

DE-i has comprehensively evolved the third generation of range extenders, drive technology, battery PACK, intelligent control, and so on. Bring users more power, lower energy consumption, and a quieter driving experience. At the same time, while ensuring the density of the battery, the battery safety has been greatly improved and the battery safety anxiety has been solved. DE-i can realize 3.2 kWh of oil per liter, and the total endurance of WLTC in full oil and full power is more than 1100 kilometers, truly achieving worry-free mileage. In terms of charging, it can not only efficiently replenish energy by itself, but also support high-power power generation and efficiently replenish energy for other trams; it only takes one hour to charge, and it can run another hundred kilometers.

On December 23 last year, AITO released the ultimate technology luxury intelligent electric drive SUV built by Xilis and deeply empowered by Huawei, the AITO Q&I M5, which originates from the Cyrus pure electric drive extended range platform (DE-i) and is equipped with a new HarmonyOS intelligent cockpit, bringing intelligence into the car and making the car smarter. This also marks the first step of AITO towards the era of smart cars.

Second, on the EVR technology policy recommendations

(1) EVR reflects statistical data separately

According to the monthly production and sales data released by the China Automobile Association, new energy vehicles are divided into two categories, namely EV and PHEV. And include EVR in PHEV. We suggest that from the perspective of industry management, EVR technology is reflected separately in new energy vehicles, which not only reflects the accuracy of classification, but also helps to promote technological diversification, and the technical route and direction are left to the market to decide.

(2) It is recommended that EVR not pay consumption tax

According to the Notice of the State Administration of Taxation on Adjusting and Improving the Consumption Tax Policy issued by the Ministry of Finance in 2006, electric vehicles are not taxable consumer goods, and manufacturers manufacturing electric vehicles do not need to declare and pay consumption tax.

The State Administration of Taxation's 2008 Notice on Adjusting the Consumption Tax Policy for Passenger Cars clearly levied consumption tax according to cylinder capacity (exhaust capacity). Since the EVR parameters reflect the engine information, they must pay consumption tax. EVR is a new technology developed in recent years, and the formulation of tax policies will inevitably lag behind.

Therefore, it is recommended to follow the "Regulations on the Administration of Investment in the Automobile Industry" issued by the National Development and Reform Commission and include EVR in the scope of EVs. The EVR tax policy implements the same policy as the EV.

Finally, EVR cars will be a new force in the new energy vehicle market, its own advantages can be very good with the current user needs in line with the needs of the current users, but also to meet the Chinese national conditions, Xilis developed a pure electric drive range extended range platform DE-i, EVR technology has made significant progress, and the technology has matured, with large-scale industrialization conditions, coupled with the support of national policies, in the current new energy vehicle industry "lack of core less electricity", EVR to reduce the capacity of the battery, And promote the transformation and upgrading of traditional engines to intelligent range extension systems, I believe that the EVR market prospects must be very beautiful! Thank you!