New Energy Vehicles Surpass the "Retreat" Cold Wave

In mid-October, with the announcement of the third-quarter performance preview of listed car companies, new energy vehicles all experienced a year-on-year increase in sales in the third quarter. On October 12, according to the data released by the China Automobile Industry Association (hereinafter referred to as the China Automobile Association), the cumulative production and sales volume of new energy vehicles during the period from January to September increased by 40.2% and 37.7% year-on-year, respectively, with Henan, which ranks among the top spots in the passenger car industry. Yutong Bus achieved sales growth of 13.57% and 10% year-on-year in September alone. The industry generally believes that the new energy automotive industry is facing a new window of mature technology and gradual improvement of the industrial structure after the wave of “backfill” policies.

Jin Jiuyin 10, New Energy Vehicle's Rapid Growth in Production and Sales in September

Through the policy shifts at the beginning of the year and the adjustment of new energy vehicle catalogues, new energy vehicles entered the traditional production and sales season in the third quarter, especially in September, and achieved double growth in production and sales.

According to statistics from the China Automotive Industry Association, in September this year, the production and sales of new energy vehicles completed 77,000 vehicles and 78,000 vehicles, respectively, a year-on-year increase of 79.7% and 79.1% respectively. The production and sales of pure electric vehicles were all completed 64,000 vehicles, an increase of 85.2% and 83.4% year-on-year respectively; the production and sales of plug-in hybrid vehicles were completed 13,000 and 14,000, respectively, an increase of 57.6% and 61.9% respectively.

From January to September, the production and sales of new energy vehicles completed 424,000 vehicles and 398,000 vehicles respectively, an increase of 40.2% and 37.7% over the same period of the previous year. Of which, the production and sales of pure electric vehicles were completed respectively 348,000 and 325,000 vehicles, an increase of 51.6% and 50.1% respectively over the same period of the previous year; the production and sales of plug-in hybrid vehicles completed 76,000 and 73,000 vehicles respectively, which was an increase over the same period of last year. 4.0% and 0.6%.

Specifically, the large-scale automobile enterprises in Henan Province and the Yutong Bus, which ranks the top spot in the industry, have also announced the production and sales bulletin recently. In September, the output was 7,229 units, an increase of 13.57% year-on-year, and sales of 7,060 units, an increase of 10% year-on-year. More than five times in August. In addition, domestic famous brands such as Guangzhou Automobile, SAIC and Geely also ushered in the peak sales season in September to achieve double growth.

“In September and the first three quarters of the year, the overall production and sales volume of new energy vehicles were within expectation. Not only in Henan Province, but also in China’s entire automotive industry, the entire automotive industry has gradually adapted to the 'backfill' policy shift, which has now entered a steady state of growth. It will help realize the transformation and upgrading of the entire industry.” The relevant staff of the Henan Automotive Industry Association pointed out that in order to develop the new energy vehicles, Henan Province is accelerating the construction of relevant infrastructure to ensure that it will complete 1,000 in 2020. Centralized charging and replacement of power stations, construction targets for 100,000 decentralized charging stations.

However, despite the fact that the entire auto industry’s production and sales transcripts in September were satisfactory, the current sales volume of 398,000 units is still a long way from the annual sales of 700,000 units expected by the industry at the beginning of the year. In response, Guosen Securities released a research report on the new energy industry on October 16. It pointed out that with the advancement of government procurement and the normalization of the list of subsidies for commercial vehicles, the production and sales volume of commercial vehicles gradually recovered in the third quarter. Even if the production and sales volume of passenger cars did not increase in the fourth quarter, and commercial vehicles increased at the current growth rate, the annual production and sales of new energy vehicles would also be expected to reach 670,000 units. However, Guosen Securities pointed out that, according to the convention, the production and sales volume data in the fourth quarter will be better than the first three quarters, so the annual production and sales data of new energy vehicles is expected to reach the target of 700,000 vehicles predicted at the beginning of the year.

Multi-party policies are favorable, and new energy vehicles usher in a new window of development

The production and sales volume of new energy vehicles have bottomed out. To a certain extent, they benefit from the two-wheel drive of the market and policies. In particular, recent favorable policies for new energy vehicles such as the fuel car ban on sales schedules and the domestic “double-integration” system have continued to land. It opened a "new window" for the development of new energy vehicles.

It is reported that at the beginning of September this year, the Ministry of Industry and Information Technology of the People's Republic of China had started the relevant research to stop production and sales of conventional energy vehicles. A detailed timetable will be set up with the relevant departments. This measure marks that China will formally ban the sale of fuel oil vehicles on the agenda. It is also the first statement of the Ministry of Industry and Information Technology on the ban on sales of fuel vehicles. There are various indications that the withdrawal of fuel vehicles will be the trend of the times.

In addition, on September 28, the 5 ministries and commissions promulgated the “Measures for the Concurrent Management of the Average Fuel Consumption of Passenger Vehicles and New Energy Vehicles,” including fuel consumption points starting from April 1, 2018 and being carried forward once every two years; The energy points will begin to be assessed from 2019, requiring the proportion of new energy vehicles in 2019 and 2020 to be 10% and 12%, respectively. The industry generally believes that the implementation and implementation of the double-integration policy means that the relevant departments have begun to encourage subsidy by large enterprises to develop new energy vehicles and become mandatory to require car manufacturers to change the product structure. In this way, the guidance of relevant policies will be more sustainable, and the enthusiasm of auto companies will be more able to be established, which will facilitate the formation of a long-term mechanism for the development of new energy vehicles and promote the promotion and popularization of new energy vehicles.

If we say that the above two favorable policies are gaining momentum, then the list of new energy vehicle models recommended by the Ministry of Industry and Information Technology on a regular basis will indicate the development trend. It is reported that in the list of the 9th batch of new energy recommended vehicles announced by the Ministry of Industry and Information Technology, pure electric vehicles accounted for 110 models, and a total of 825 models were announced in the first nine months of 2017, an increase of 94.6% year-on-year. With the announcement of the new batch list, new energy vehicles will usher in concentrated explosive growth from October to December.

However, in addition to the “tangible promoters” of the national policy, several car companies have accelerated technological innovations, and they have invested in new energy vehicles in the second half of the year in an effort to achieve “taking over the curve”. It is reported that Zhengzhou Haima’s huge time-sharing leasing government project has officially started. In addition, cities such as Anyang and Sanmenxia in Henan Province have started new energy vehicle construction projects. The country’s macro guidance, coupled with the multiple needs and choices of the market, new energy automobile related companies We are welcoming unprecedented business opportunities and growth space.