As we all know, since 2019, domestic new energy subsidies drastically back slope, overall sales of new energy automotive industry is not optimistic, but with the shock of the environment, the domestic passenger car market is also showing a downward trend overall. At the same time, many have said speculation that in 2020, domestic new energy subsidies will all quit. Recently, however, with the increasing voices of doubt in the market, we also see the latest news in the answer.
Recently, the Minister of Industry and Miao Wei in the Chinese electric vehicle Hundred, high-level forum said that since November 2019 the new energy automobile production and sales have been gradually restored to the average of the previous subsidy back slope, showing the good sign and July 1, 2020, new energy car allowance will not retreat sharply slope, new energy car allowance policy will remain relatively stable.
However, the news was confirmed in a follow-up is not finalized, is completely exit is still under discussion.
As we all know, new energy vehicles development and policy are closely linked, with good stability policy will do much to advance new energy automobile market is stable and complete transition from policy to drive market-driven. Some analysts pointed out that the technology is still not enough to fully support enterprises to absorb the huge subsidies under pressure after the back slope, subsidies for new energy vehicles may not be immediately and completely withdraw, but if hastily canceled all subsidies, new energy automobile manufacturing companies will bring relatively large psychological impact and influence, those companies really make a large investment in technology and R & D to give up or reduce technical and R & D investment.
Therefore, new energy vehicles subsidies must be phased out at the same time, adjustment and optimization, allowing subsidies play a better role. The most important thing is to encourage enterprises to strengthen technology research and development, enhance the core competitiveness of products.
2020 market will happen?
From the market point of view, since the beginning of July 2019, which is the first month of the new energy market has been six consecutive months of sales decline year after the withdrawal of subsidies slope. According to the Automobile Association data show that in 2019 China’s new energy automobile production and sales were completed 124.20,000 and 1,206,000, respectively, year on year decline 2.3 percentage percentages and 4. And such data can be said to have a certain relationship with the sharply sloping back in 2019.
previous year, new energy subsidies back about 20 percentage last year, 75 percentage back from a business point of view, the affected slope retreat, which product gross margin will drop sharply, can not even hold up the development of enterprises, and subsidies for new energy vehicles back slope is too large, it will result in reduced gross margin business, production began to shrink, so, for the government, which in 2020 the final thing you want, is to stabilize the status quo.
If we say that in 2018, the new energy vehicle market entered a period of adjustment to the market and industry structure, then in 2019, it is a period of adjustment in the final stages. Meanwhile, the new energy automotive industry has recovered to 2019 new energy vehicles subsidy sharp retreat average level before the slope.
Therefore, for 2020, the competition of new energy vehicles will be more intense. After all, a lot of joint ventures and new energy enterprises have put in 2020, defined as the first year of the new energy in favor of force, such as Tesla, Toyota, for example, another example of BMW.
As for the domestic new repairer forces Ye Hao, Ye Hao domestic Chinese brand, will have a big impact, and although China’s auto industry, the market is very large. However, the joint venture enterprises have released strategic planning and competitive product point of view, in 2020, even if the subsidies remain in the state in 2019, but not for enterprise core and core technology advantage, still has a lot of market pressure and product pressure. On the other hand, we have experienced and possess the necessary technical reserves of the company, also showed continued upward momentum.