New energy vehicle industry into a new driving force for development

On October 9, the Executive meeting of the State Council adopted the Development Plan of New Energy Automobile Industry (2021-2035) to adapt to the trend of automobile industry upgrading and the new demand of green consumption. On October 26, at a regular briefing on state Council policies, the government also proposed that new energy vehicles, commercial vehicles and other industries add new capacity, requiring fair qualification, certification and recognition under conditions that meet the market access requirements, and no additional preconditions should be set.

At present, the automobile industry is also an important contributor to the global GROSS domestic product (GDP), relating to a large number of industrial manufacturing enterprises with rich industrial chains. Take China as an example. In 2019, the contribution of China's automobile industry to GDP growth reached 0.36%. The overall sales volume of the automobile manufacturing industry was 808.467 billion yuan, down 1.8% compared with the same period of last year. Profits totaled 508.68 billion yuan, down 15.9 percent year on year.

Ministry of talent exchange center auto analyst zhang told the journal economic, JingJiWang journalists, China's auto market is very big, and the current domestic backbone of buying a car is mainly the middle class, a car price is in commonly more than 10 ten thousand yuan to five hundred thousand yuan between, traditional models of car companies has now can't meet the demand of their individual environmental protection.

Faced with the reality that the traditional auto market is becoming saturated, Zhou Cuicui, an analyst with IMedia consulting, told Economy.com that as a new engine for auto development, new-energy vehicles, with their price and travel radius, are suitable for the vast rural market and are the new driving force for the industry.

Zhou cuicui said that the global development plan for new energy vehicles promotes the global popularization of new energy vehicles, and the development of new energy vehicles has become a common consensus among major countries in the world. According to the development goals of new energy vehicle sales, Norway plans to sell all new energy vehicles (100%) in 2025, the EU plans to sell 35% new energy vehicles in 2030, and China plans to sell 25% new energy vehicles in 2025.

With the development of new technologies such as charging piles, lithium batteries and Internet of vehicles, zhou cuicui believes that the commercialization process of new energy vehicles, driverless vehicles and other technologies has been greatly accelerated. Giant enterprises such as alibaba, Tencent, Meituan and baidu are all paying attention to this field. That has given domestic carmakers more confidence.

New energy vehicles have been more and more recognized by consumers. The latest statistics from the China Association of Automobile Manufacturers show that in September 2020, The production and sales of new energy vehicles in China were 136,000 and 138,000 respectively, up 48.0% and 67.7% year-on-year. The surge in sales has boosted the share prices of listed companies, with the A-share new-energy vehicle index up nearly 30 per cent since the second half of the year, substantially outperforming the Shanghai Composite index over the same period, according to WIND. (Wen/Xu Yalan, journalist of Economic Magazine and Economic Network)

News source: Economy.com