On December 31, 2021, the Ministry of finance, the Ministry of industry and information technology, the Ministry of science and technology and the national development and Reform Commission jointly issued the notice on the financial subsidy policy for the promotion and application of new energy vehicles in 2022 (hereinafter referred to as the “notice”) and the scheme for the promotion and subsidy of new energy vehicles in 2022 (hereinafter referred to as the scheme).
The notice requires that in 2022, the subsidy standard for new energy vehicles will decline by 30% on the basis of 2021; For qualified vehicles in urban public transport, road passenger transport, rental (including online car Hailing), sanitation, urban logistics and distribution, postal express, civil aviation airport and public service of Party and government organs, the subsidy standard will decline by 20% on the basis of 2021.
At the same time, the notice specifies that the subsidy policy for the purchase of new energy vehicles in 2022 will be terminated on December 31, 2022, and the vehicles licensed after December 31, 2022 will no longer be subsidized.
Experts interviewed by the Securities Times said that since 2021, the sales of new energy vehicles have far exceeded expectations, and the policy control means have become more and more abundant. Compared with fuel vehicles, the decline of subsidy policies will not have a significant impact on the new energy vehicle industry in the future according to the development advantages of new energy vehicles.
(screenshot source: Official Website of the Ministry of Finance)
the subsidy standard for new energy vehicles will decline by 30% in 2022
As early as April 2020, the Ministry of Finance and other four departments issued the notice on improving the financial subsidy policy for the promotion and application of new energy vehicles, which clearly extended the implementation period of the financial subsidy policy for the promotion and application of new energy vehicles to the end of 2022. In principle, the subsidy standard for 2020-2022 will decline by 10%, 20% and 30% respectively on the basis of the previous year.
On December 31, 2021, in order to further support the high-quality development of the new energy vehicle industry and in accordance with the requirements of relevant documents in 2020, the notice specifies that in 2022, the subsidy standard for new energy vehicles will decline by 30% on the basis of 2021; For qualified vehicles in urban public transport, road passenger transport, rental (including online car Hailing), sanitation, urban logistics and distribution, postal express, civil aviation airport and public service of Party and government organs, the subsidy standard will decline by 20% on the basis of 2021.
The scheme further defines the subsidy standards for vehicle products of different types and fields, and will be implemented from January 1, 2022.
In terms of subsidy scheme for new energy passenger vehicles (non-public domain), RMB 9100 will be subsidized for models with driving range of pure electric passenger vehicles greater than or equal to 300km and less than 400km, and RMB 12600 will be subsidized for models with driving range of pure electric passenger vehicles greater than or equal to 400km. 4800 yuan will be subsidized for models with a driving range of plug-in hybrid electric (including incremental program) passenger vehicles greater than or equal to 50km (NEDC working condition) or greater than or equal to 43km (wltc working condition).
(screenshot source: Official Website of the Ministry of Finance)
The plan also specifies that new energy passenger vehicles purchased or used for operation by non private individuals shall be subsidized at 0.7 times the corresponding subsidy amount.
In recent years, driven by the subsidy policy of supporting the superior and the strong, the supply quality of Shanxi Guoxin Energy Corporation Limited(600617) automobile products has been continuously improved, the technical level has been significantly improved, and the product practicability has been greatly improved. The notice also makes it clear that for the purchase subsidy policy in 2022, the threshold of technical indicators such as energy density, driving range and energy consumption of power battery system will remain unchanged to stabilize the enterprise expectation.
purchase subsidy terminated at the end of the year
The notice proposes that in order to maintain the good development momentum of the new energy vehicle industry and comprehensively consider the development planning of the new energy vehicle industry, the market sales trend and the smooth transition of enterprises, the subsidy policy for the purchase of new energy vehicles in 2022 will be terminated on December 31, 2022, and no subsidies will be given to vehicles licensed after December 31, 2022. At the same time, continue to strengthen the audit and do a good job in the liquidation and closure of vehicles promoted in previous years.
While enterprises in some industries still need financial subsidies, the new energy vehicle industry has achieved a smooth decline in subsidy standards year by year. In this regard, the relevant person in charge of the Ministry of Finance said that in 2021, the new energy vehicle industry still achieved substantial growth in the face of adverse effects such as global epidemic spread and chip shortage, and the industrial development trend was good. In 2022, the subsidy policy will continue to decline orderly according to the established arrangements to create a stable policy environment.
In the view of many experts, the subsidy standard has declined smoothly year by year, thanks to the rapid development of the new energy vehicle industry in recent years, especially the sales of new energy vehicles exceeded expectations in 2021, which makes the smooth decline of relevant policies more confident.
According to the statistics of China Automobile Industry Association, in November 2021, the production and sales of new energy vehicles completed 457000 and 450000 respectively, with a year-on-year increase of 1.3 times and 1.1 times respectively, and the production and sales continued to refresh the historical record. From January to November, the production and sales of Shanxi Guoxin Energy Corporation Limited(600617) vehicles were 3.023 million and 2.99 million respectively, an increase of 1.7 times year-on-year. New energy vehicles accounted for more than 12% of vehicle sales.
Zhang Xiang, a researcher at the automotive industry innovation research center of Northern University of technology, told the securities times that the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles and the proportion of new energy vehicles in new vehicles in 2021 far exceeded the previous expected target, and the sales volume in 2022 is expected to reach 5 million. With the volume of new energy vehicles in 2022, the relevant promotion subsidy policies can “rest assured” to completely withdraw the subsidies.
“On the whole, the declining subsidy policy will not have a negative impact on the new energy vehicle market.” Zhang Xiang told reporters that at present, the government has many regulatory means for the new energy vehicle industry. Even if the subsidy policy declines, there are other means to adjust. From the development trend, the oil price may rise further in the future, the development cost of fuel vehicles is increasing, and the national regulations on fuel consumption standards and emission standards of fuel vehicles are becoming stricter, which will become the indirect advantages of new energy vehicles. In addition, the relatively cheap charging of new energy vehicles is also a major advantage.
enterprises that conceal accidents and do not cooperate with the investigation or are disqualified from subsidies
The safety of new energy vehicle products is related to the vital interests of consumers and an important guarantee for the healthy and orderly development of new energy vehicle industry. The notice points out that in recent years, new energy vehicle products with the characteristics of intelligent Internet connection have been gradually applied to the market, resulting in data security, network security and other issues becoming an important concern, and Shanxi Guoxin Energy Corporation Limited(600617) vehicle fires and safety accidents still occur from time to time.
In order to further strengthen product safety supervision, ensure vehicle quality and information safety, and effectively protect the interests of consumers, the notice clearly puts forward measures to improve the safety supervision system of new energy vehicles and further compact the main responsibility of new energy vehicle manufacturers. At the same time, a cross departmental information sharing mechanism and a vehicle accident reporting system will be established around vehicle fires and major accidents. For enterprises that conceal accidents and do not cooperate with the investigation, the subsidy qualification of the models involved will be suspended or cancelled according to the seriousness of the circumstances.
Zhang Xiang believes that it is very necessary to further strengthen the safety supervision of new energy vehicles. Fire accidents of new energy vehicles occur from time to time. Not only the maintenance cost is expensive, but also the accident rate is high. It is understood that the compensation rate of new energy vehicle insurance may generally exceed 85%, much higher than that of fuel vehicles. Therefore, this special emphasis on the possible cancellation of subsidies for enterprises that conceal accidents and do not cooperate with the investigation is intended to accelerate the rectification of the industry.
Li Youxiang, director of the property insurance Department of the CIRC, once said at the press conference of the CIRC in the first quarter that in the actual operation process, new energy vehicles are different from traditional vehicles in terms of body structure, power system, use scenario and maintenance, and their risk characteristics and accident causes also show some particularity. At present, new energy vehicles are affected by factors such as small overall ownership, fast model iteration, short industrialization time and incomplete emergence of potential risks. The underwriting and claim data of new energy vehicles mastered by the industry are limited, which affects the calculation of new energy vehicle insurance risk premium.
It is worth noting that the China Insurance Industry Association recently issued the exclusive provisions for commercial insurance of new energy vehicles (Trial), in which the three main insurance regulations of “new energy vehicle loss insurance”, “new energy vehicle third-party liability insurance” and “new energy vehicle on-board personnel liability insurance” all specify the protection of accidents, including “fire and combustion”.
(Securities Times)
