New Energy Vehicles Expect High Growth Next Year

This year, in the overall downturn of the automotive market, the new energy automotive market has maintained a high growth trend, which consolidates China's leading position as a global new energy automotive market. However, in the new energy automobile segment market, plug-in hybrid vehicles have performed well, while pure electric vehicles have not lived up to expectations. Industry insiders believe that in the long run, it is particularly important to improve the technology and safety of new energy vehicles. At the same time, we need to pay attention to the problem of overcapacity of automobiles in order to promote the sustainable, healthy and stable development of the industry.

 

　　According to the data released by China Association of Automobile Manufactures, the production and sales of new energy vehicles in November were 173,000 cars and 169,000 cars respectively. From January to November, the cumulative production and sales of new energy vehicles reached 1.054 million cars and 1.030 million cars respectively, up 63.6% and 68% respectively.

　　"In the environment of continuous downturn in the overall automotive market and five consecutive months of year-on-year decline, new energy vehicles still maintain high growth, with annual production and sales exceeding 1 million vehicles for the first time." According to the Industry Ministry of the Development Research Center of the State Council, automobile production and sales fell by 18.9% and 13.9% respectively in November compared with the same period last year, while the production and sales of new energy automobiles increased by 36.9% and 37.6% year-on-year under the stimulation of purchase subsidies, fuel vehicle restrictions and license restrictions.

 

　　Meanwhile, the annual growth rate of automobile production and sales in November was lower than 58.1% and 51% in October and 64.4% and lower than 54.8% in September. From January to November, the growth rate of production and sales of new energy vehicles increased year on year, lower than 70% and 75.6% from January to October and lower than 73% and 81.1% from January to September. It reflects that the total amount of new energy vehicles is on the rise, but the marginal stimulus of subsidies decreases and the growth rate further decreases. For new energy vehicles to achieve the goal of one million, China Association of Automobile Manufactures data shows that "production and sales are expected to reach 1.2 million vehicles this year, and it will continue to develop at a relatively high speed in 2019, with an increase of at least 400,000 vehicles compared with the production and sales of new energy vehicles in 2018."

　　Driven by both policies and capital, this growth was unexpected. This has further consolidated China's leading position as a global market for new energy vehicles.　

　　　

“In the long run, it’s the most critical to upgrade the technology and safety of new energy vehicles." In the short run, the new energy vehicles will face the challenges of subsidy exit and the competition from foreign new energy vehicles, fearing that there will be excess capacity. The Ministry of Industry and Information Technology promulgated the Regulations on “Administrative Measures for Road Motor Vehicle Manufacturing Enterprises and Product Access” on 6th December,2018, encouraging automobile R&D and design enterprises to cooperate with production enterprises and allowing "contract manufactures" to produce automobiles. It is a strong policy signal. At present, both the competent authorities and automobile manufacturing enterprises should take the problem of overcapacity of automobiles seriously.

 

　　Besides, with the market growth, New energy automobile enterprises have also grown up in China. From January to November, the Top 10 sales volume of Chinese brand automobile enterprises were SAIC, Geely, ChangAn, DongFeng, BAIC, Great Wall, Chery, FAW, GAC and BYD. Ten enterprises sold 10,423,500 vehicles in total, which captured 81.55% of the total sales volumes of Chinese brand automobiles. It is understood that compared with the same period last year, sales of Geely, Chery and BYD grew rapidly in double-digit. SAIC and GAC was slightly lower than growth rate, and the other five enterprises showed different degrees of decline.