□ our reporter Wei Qiao
In recent years, stimulated by favorable policies such as new energy vehicles going to the countryside, purchase subsidies and trade in, coupled with the increasing improvement of supporting facilities such as battery life charging, the consumption of new energy vehicles has reached record highs. However, a policy recently issued by many departments may put a “brake” on the rapidly developing new energy vehicle industry – recently, 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 circular on the financial subsidy policy for the promotion and application of new energy vehicles in 2022. According to the notice, in 2022, the subsidy standard for new energy vehicles will decline by 30% on the basis of 2021. On December 31, 2022, the subsidy policy for the purchase of new energy vehicles will be terminated, and the vehicles licensed after December 31 will no longer be subsidized.
What impact will this policy have on the booming new energy vehicle market? In this regard, Xu Yingming, director of the International Market Research Institute of the Research Institute of the Ministry of Commerce, said frankly in an interview with the reporter of the international business daily that in the short term, the decline of the subsidy standard will have a certain adverse impact on the new energy vehicle market and will bring some pressure on the profit space of new energy vehicle manufacturers.
“If the sales price is not increased, the profit space will be compressed; if the sales price is increased, the factors such as rising battery price and tight chip supply will lead to changes in sales.” Xu Yingming said that it is foreseeable that the competition in the new energy vehicle market will become more market-oriented and fierce, which will further test the coping ability of enterprises.
In the long run, Xu Yingming said that this is the only way for the sustainable development of the new energy vehicle market. “The declining subsidy standard will accelerate the transformation of the new energy vehicle market from ‘policy driven’ to ‘market-oriented’. In the future, only brands and enterprises with good product quality, strong cost control ability and high consumer recognition will be more competitive.”
Jiang Han, senior researcher of Pangu think tank, said in an interview with the international business daily that with the support of the subsidy policy for new energy vehicles, the Shanxi Guoxin Energy Corporation Limited(600617) automobile industry has made great progress. However, no industry can always get policy subsidies, and will certainly enter the stage of subsidy decline until exit. This subsidy decline is also expected for the new energy vehicle industry and market.
“The subsidy policy for new energy vehicles is very attractive to some consumers. Under the influence of the subsidy policy, the price of new energy vehicles is relatively lower than that of fuel vehicles. With the continuous decline of the subsidy policy, these consumers will make more comparisons between the two.” Jiang Han said that in addition, the decline of subsidy policy puts great pressure on new energy vehicle enterprises. On the one hand, in recent years, the profits of many new energy vehicle enterprises mostly rely on subsidies. With the decline of subsidies, their profit level will decline significantly. On the other hand, without the price advantage, the competitiveness of the new energy vehicle market will be far lower than that of fuel vehicles. With the decline of subsidies, the competitiveness of some new energy vehicle enterprises will decline significantly.
“New energy vehicle enterprises must find ways to improve the market competitiveness of their products, so that they can stand out in the market even without subsidies.” Jiang Han said.
For the future development trend of the new energy vehicle market, Xu Yingming believes that the decline of subsidy standards can not fundamentally change the rapid growth trend of the new energy vehicle market. “In the short term, it only has an impact on the growth rate. In addition to the consumption demand restrained by insufficient supply in the early stage, it is expected that the contradiction between the consumption demand and supply of new energy vehicles will continue to deepen, and the consumption of new energy vehicles in China will still maintain a high growth trend.”
(International Business Daily)
