On April 1, at the annual performance conference of Weichai Power Co.Ltd(000338) 2021, Tan Xuguang, chairman and CEO of Weichai group, said that there would be a disastrous overcapacity of new energy vehicles.
he said that in recent years, the new energy industry has been “quite lively, swarming and disorderly competition”. Many companies have used the capital market to mix private activities with the capital concept of new energy vehicles, expanding wealth through the capital market, resulting in disorderly expansion of the new energy industry
“I said this after careful consideration, not nonsense.” At the performance press conference, Tan Xuguang particularly stressed the prudence of the above judgment and said that this is a phenomenon that the industry can see clearly.
It is noteworthy that Lin nianxiu, deputy director of the national development and Reform Commission, also focused on the production capacity of new energy vehicles at the China electric vehicle hundred people’s conference Forum (2022) held a few days ago.
Lin nianxiu said that we should encourage and guide key areas to formulate industrial development plans. Vehicle enterprises should highlight the key layout and rely on the agglomeration development of existing production bases. Before the existing bases reach a reasonable scale, there will be no new capacity distribution.
new energy vehicle capacity to “burst”
In recent years, under the guidance of policies, local governments are scrambling to layout new energy vehicle planning projects, adding a lot of planning capacity. Relevant data show that at present, enterprises with production qualification are expected to have tens of millions of production capacity under construction, which are mostly new energy vehicles.
However, with the rapid expansion of the overall scale of the industry, the differentiation within the industry is becoming more and more obvious. According to the data of China Automobile Industry Association, among the 98 automobile production enterprises counted in 2021, more than 50 enterprises produced less than 1000 vehicles per month, of which nearly 20 were in suspension and produced 0 vehicles per month. The total sales volume of the top ten enterprise groups accounts for about 90% of the total automobile sales, and the productivity utilization efficiency is much higher than the industry average level, or even 100%.
Obviously, in the existing capacity, there are both insufficient and idle parts. Previously, the national passenger car market information joint meeting publicly warned that while solving the problem of overcapacity of traditional vehicles, the automobile industry should also prevent overcapacity of new energy vehicles.
Recently, Lin nianxiu, deputy director of the national development and Reform Commission, specially proposed to guide the new energy vehicle industry to gather in regions and subjects with good development foundation and full utilization of production capacity, focusing on building internationally competitive industrial clusters in the Yangtze River Delta, Pearl River Delta, Beijing Tianjin Hebei, Chengdu Chongqing and other regions. Encourage and guide key areas to formulate industrial development plans. Vehicle enterprises should highlight the key layout and rely on the agglomeration development of existing production bases. Before the existing base reaches a reasonable scale, there will be no new production capacity distribution.
“Encourage key enterprises to reach a certain scale in one place and build a second point, and the whole country should make an overall layout and not blossom everywhere.” Lin nianxiu said.
In addition, the national development and Reform Commission will strictly implement the regulations on the investment management of the automobile industry, strengthen the clean-up and rectification of illegal projects of new energy vehicles, and investigate and deal with illegal acts such as construction without approval, wholesale and retail construction and consolidation, and construction while approval in accordance with laws and regulations; Standardize the merger and reorganization of vehicle enterprises, and vigorously promote the exit of backward enterprises and ineffective production capacity.
Insiders told the securities times that the new energy vehicle industry has been particularly hot in recent years, attracting many cross-border enterprises and capital. When the industry develops to a certain scale, it is indeed necessary to conduct a scientific examination. In particular, the competent government departments should encourage those advantageous production capacity to play a better role according to the current situation of industrial development, so as to avoid the waste of resources caused by a swarm of investment. At the same time, for enterprises, we should also see that the investment and layout of the automobile industry are highly professional and complex. It is suggested that enterprises adopt a rolling development model and beware of rash investment.
promoting merger and reorganization is the trend, and the overseas market will absorb part of the production capacity
“The arrival of new energy has brought the impetus of scientific and technological progress to traditional energy. Reducing fuel consumption and improving efficiency is an important means to realize the power of traditional fossil energy and prolong its life. Diversified combination of energy structure is the direction of the future, and it is impossible to rely solely on fossil energy.”
Although Tan Xuguang “shelled” some irrational investment behaviors in the field of new energy vehicles at the performance conference, he did not deny the role and significance of new energy vehicles to the industry.
In view of the existing worries about overcapacity in the new energy vehicle industry, some people in the industry suggested that we can actively promote and guide the development of the automobile industry, based on the existing capacity, encourage traditional fuel vehicle enterprises to actively adjust the product structure, increase investment in R & D of pure electric technology, and encourage qualified advantageous enterprises to merge and restructure enterprises with low capacity utilization or special publicity, Fully develop and utilize the existing production capacity in the form of upgrading into a smart factory.
For example, at this year’s two sessions, Wang Fengying, deputy to the National People’s Congress and Great Wall Motor Company Limited(601633) president, proposed that the regulatory authorities conduct a thorough investigation of the country’s new automobile projects during the 14th Five Year Plan period, strengthen the supervision of enterprises with excess capacity, strictly control the new vehicle capacity, curb blind investment, avoid inefficient repeated construction, and establish an exit mechanism.
In addition, she also proposed that for China’s new energy vehicle enterprises, the overseas market is a good export. It is necessary to advance to the international markets with great development potential in Europe, America and other electric vehicle markets, drive the overall export scale of Chinese vehicles and digest China’s production capacity.
Xu Haidong, deputy chief engineer of China Automobile Industry Association, also said that the rapid expansion of the global electric vehicle market has provided opportunities for China Shanxi Guoxin Energy Corporation Limited(600617) automobile exports. In the next step, we should better cultivate the brand benefits of new energy vehicles and implement the localization strategy
National Development and Reform Commission: “no new production points for new energy vehicles will be added until the existing base reaches a reasonable scale”. The production capacity should be “braked” and the layout should be “revitalized”
The momentum of delivery volume of new energy vehicle enterprises in March remains unchanged, and the impact of price rise still needs to be observed
