With the penetration rate of new energy vehicles exceeding half, where will the competition with fuel vehicles go?

In the first half of April, the market penetration rate of new energy vehicles in mainland China exceeded 50%, and the market position of fuel vehicles began to waver. Industry insiders said that in a long period of time, the automobile market may show a dual-track parallel, and new energy vehicles and fuel vehicles will compete and coexist in different fields.

Recently, the automotive industry is talking about a data: the market penetration rate of new energy vehicles in mainland China has exceeded 50%. Associated with this, the topic "Buying fuel vehicles has officially become a minority" once rushed to the first place on Baidu's hot search list.

When you think of gasoline vehicles, you may think of their characteristic smell of fuel and the deafening roar of the engine. With the improvement of the endurance of new energy vehicles, which can now reach up to 2,000 kilometers, the market position of fuel vehicles seems to be shaking.

In interviews with reporters in the past few days, many industry experts said frankly that with the implementation of environmental protection regulations and the continuous development of new energy technology, fuel vehicles are bound to innovate and improve in order to maintain their competitiveness in the market. In the future, fuel vehicles will adopt more environmentally friendly and energy-saving designs, or integrate with new energy technologies to adapt to the ever-changing market demand. In the long term, the automobile market may show a dual-track parallel, and new energy vehicles and fuel vehicles will compete and coexist in different fields.

A landmark event

According to the data of the China Passenger Car Association, from April 1 to April 14, the national passenger car market retailed 516,000 units, of which the sales of new energy vehicles increased by 32% year-on-year to 260,000 units, with a penetration rate of 50.39%, and the national passenger car manufacturers wholesaled 534,000 vehicles, of which 268,000 were new energy vehicles, with a penetration rate of 50.19%.

The retail and wholesale penetration rates of new energy vehicles have both exceeded 50%, reaching this historic milestone faster than many people estimated. From 2005 to 2015, it took 10 years for China's new energy vehicles to achieve a market penetration rate of more than 1%. However, in recent years, its development has accelerated significantly.

With the advancement of electric vehicle technology, the range and charging speed of electric vehicles have increased significantly. The gradual completion of charging facilities has attracted more and more consumers to choose electric vehicles. Coupled with the reduction of battery costs, the cost of purchasing electric vehicles has dropped significantly, and electric vehicles have become the new favorite of family travel.

As the engine of change in the contemporary automotive industry, intelligent driving technology continues to promote the progress of new energy vehicles. At the beginning of the new year, people have witnessed the rapid progress of intelligent driving technology from Level 2 assisted driving to Level 4 almost full autonomous driving. Statistics show that intelligent driving systems can effectively reduce traffic accidents by about 40% and significantly reduce driver fatigue. With the improvement of regulations and the continuous advancement of technology, it is expected that the penetration rate of intelligent driving will double in the next few years.

A number of new energy vehicles launched this year are equipped with highly autonomous driving capabilities in highway and urban environments, using high-precision map and sensor fusion technology to gain real-time insight into road conditions and intelligent decision-making, bringing unprecedented convenience to drivers.

The rise of domestic brands has become a trend

In recent years, technological progress and the improvement of brand image have won the favor of more and more consumers for domestic cars. Taking Geely and Great Wall as examples, their market share has shown a strong growth trend at home and abroad. In the field of electric vehicles, BYD's sales have been the top seller in the global market for several months.

According to Mo Yuanming, a professor at Chongqing Technology and Business University, the rise of domestic new energy vehicle brands is the result of a combination of factors, among which policy support and technological innovation are particularly important.

From a policy perspective, in recent years, the mainland has continued to guide and encourage the development of the new energy vehicle industry. This year's government work report clearly stated that "consolidating and expanding the leading advantages of intelligent networked new energy vehicles and other industries" and "boosting intelligent networked new energy vehicles" once again demonstrated the mainland's determination to accelerate the development of new energy vehicles.

From a technical point of view, BYD has a series of leading technologies such as blade battery, CTB battery and body integration, Chery has independently developed the hybrid technology Kunpeng Super Hybrid C-DM mass production and installation, and Changan Automobile has created the first self-designed "UNIBrain Super Brain Central Computing Platform" with integrated cabin and driver...... The key to the realization of lane change and overtaking of new energy vehicles in mainland China is to realize power transformation and kinetic energy conversion with scientific and technological innovation.

The production and sales of new energy vehicles in mainland China have ranked first in the world for nine consecutive years, showing huge consumption capacity and potential. The huge market scale effect helps enterprises reduce costs and improve market competitiveness in R&D, production, sales and other links. The relevant person in charge of Changan Automobile said that at present, many car companies, including Changan, have reduced car prices to improve market competitiveness, which has also lowered the threshold for new energy models.

Where is the boundary of smart cars in the future?

"There is still a long way to go to achieve the annual penetration rate of new energy vehicles exceeding 50%, and the new stage also means unprecedented challenges. Xiao Zhengsan, vice president and secretary general of the China Automobile Dealers Association, said.

Cai Yudong, a national skill master of Changan Automobile, said frankly that there are still obvious shortcomings in the current new energy vehicle chips, basic software, etc., and consumers are still facing anxiety about charging in some regions and time periods. In addition, the current power battery recycling system is not perfect, and the problems of energy reuse and environmental pollution also need to be solved urgently.

In addition to the need for further breakthroughs in technology, the development of new energy vehicles is also facing the test of the market. This year, price competition in the auto market is still fierce. Cui Dongshu, secretary general of the passenger association, said that last year's market price reduction was relatively balanced, but this year it has reached a super level. Since the beginning of 2023, this price war has been fought for more than a year, and there is no sign of stopping the war yet.

"New energy vehicles quickly occupy the market with the advantages of environmental protection, energy saving, and economy, but fuel vehicles still have a market position with convenient refueling, stable endurance and high value retention rate. Cai Yudong said that policy and technical support will promote the development of new energy vehicles, and sodium battery technology may be the key to the future. For a long time, new energy vehicles and fuel vehicles have competed and coexisted in different fields.

Mo Yuanming believes that for some consumers, the uncertainty brought about by new technologies is a hindrance in the process of buying a car. The range of fuel vehicles is stable, not affected by temperature and other factors, especially suitable for long-distance travel, and it has stood the test of time in terms of performance, reliability and technology. Electric vehicles, on the other hand, need more time to prove their reliability. With the continuous development of technology and the diversification of consumer needs, the automotive market will be richer and more flexible to adapt to the needs and preferences of different consumers.

Source: Workers' Daily