China’s NEV Stock to Hit 5 Million Units by 2020
时间：2019-01-03 21:21:16 来源：本站 点击：8次
Recently, iResearch released the 2018 China New Energy Vehicle Industry Research Report (hereinafter referred to as the Report).
The Report shows that while China’s overall automobile market faced a short-term downturn in 2018, new energy vehicles (NEVs) bucked the trend with rapidly expanding market scale. It was projected that the NEV ownership volume would hit 5 million units by 2020. Driven by successive supportive policies, the NEV industry advanced into a more in-depth market-oriented development stage.
The Report points out that three major factors fueled the leapfrog growth of China’s NEV market within five years. First, some automakers have built solid foundations in the R&D and commercial application of hybrid power technology and lightweight material technology. Second, few other countries offer subsidies as substantial and incentive policies as efficient as China’s. Third, countries differ vastly in geographical traffic conditions and vehicle consumption concepts.
According to the Report’s analysis, China stands as the world’s most promising automobile market. Its current vehicle ownership stands at around 169 vehicles per 1,000 people, merely 30% to 50% of that in mature markets. The country’s target of 5 million NEVs in stock by 2020 deserves full confidence from all market players. Meanwhile, driven by combined forces including technological advances, policy backing, abundant capital, improved infrastructure, rising environmental awareness among consumers and growing demand for clean energy vehicles, NEV output and sales hit repeated record highs, with ownership expected to reach 2.6 million units by the end of 2018.
The Report stresses that despite the temporary slump in the overall auto market, its huge potential remains intact. Nevertheless, the continuous slowdown in growth rate signals the gradual maturity of China’s automobile sector, ushering in fiercer market competition.
In terms of industrial policies, the Dual-Credit Policy effectively stimulates NEV production and accelerates the market-oriented transformation of the NEV industry. Apart from vehicle purchase tax exemptions, the Circular on Vehicle and Vessel Tax Policies for Energy-Saving and New Energy Vehicles jointly issued by four ministries including the Ministry of Finance stipulates that NEV models listed in the Catalogue of Energy-Saving and New Energy Vehicle Models Eligible for Vehicle and Vessel Tax Exemptions are exempt from vehicle and vessel tax. The Report holds that tax reductions for consumers will remain a major long-term incentive policy, thanks to its wide coverage, controllable fiscal cost and remarkable stimulating effects.
The Report notes that China will remain the global growth engine of the automobile market in the short run. With domestic and foreign automakers all targeting the Chinese market amid intensifying market competition, Chinese NEV manufacturers may adopt an alliance mindset to formulate long-term development strategies. Joint development of shared vehicle platforms can cut costs and sustain China’s global advantage in NEV production and sales.
Enterprises should also establish an industrial chain mindset to integrate upstream and downstream sectors closely linked to NEVs. Chinese NEV makers can forge deep partnerships with upstream power battery suppliers to develop brand-new dedicated NEV platforms based on battery technologies, achieving cost reduction and technological breakthroughs.
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