The World New Energy Vehicle Conference 2020 is being held in Haikou, Hainan Province.
At the conference, the future of China's new energy vehicle market has attracted much attention and the following topics were discussed in depth.
Phase decline after rapid growth
Xin Guobin, vice-minister of Industry and Information Technology introduced, In recent years, China's new-energy vehicle industry has made positive progress and become an important force in the global automotive industry's electric transformation.
Production and sales ranked first in the world for five years in a row, with a cumulative total of more than 4.5 million vehicles promoted, accounting for more than 50% of the global total.
However, due to macroeconomic downward pressure, subsidy rollback and other factors, China's new energy vehicle sales in 2019 will only achieve 1.206 million units, down 4% year-on-year.
Especially this year Jan to Jul, Europe's total sales of new energy vehicles reached 500,000 units, 14,000 units more than China, causing widespread social concern.
"I think we should be rational about this issue," Xin suggested.
He analyzed that in 2018, China's auto market showed negative growth for the first time since 1990, and has been on a downward trend for the past three years.
This year, affected by the epidemic, there may still be a certain amount of decline.
"But new energy vehicles are just a phase of decline after experiencing rapid growth, and consumers are still welcoming to new energy vehicles in general."
In his perspective, with the advancement of power battery technology and the improvement of charging and switching infrastructure construction, the development advantages of new energy vehicles will become more and more obvious.
Subsidy retreat on the market impact is temporary
"The impact of the new energy vehicle subsidy rollback on the market is temporary," Xin said.
He explained that in order to actively deal with the impact of the epidemic and alleviate the pressure of business operations, the Chinese government has made it clear that new energy vehicle subsidies and purchase tax incentives will be extended for two years.
To help companies explore the market, the Ministry of Industry and Information Technology (MIIT), together with other relevant departments, has organized a campaign to bring new energy vehicles to the countryside.
He believes that these initiatives will further promote the steady development of the industry.
"Since July this year, monthly sales of new energy vehicles have achieved positive year-on-year growth and have returned to a consumption level of 100,000 vehicles per month," Xin advised.
Xin introduced that, from the perspective of technology research and development, China's major auto companies have basically established a positive research and development system for new energy vehicles.
"A number of new car-making forces have injected new vitality into the industry, and a number of international multinationals have stepped up research and development of new energy vehicles, with products developed on a newly designed pure electric drive platform increasingly recognized by consumers," Xin said.
Consumers are more open to accepting new models
The attractiveness of China's new energy vehicle market to foreign car brands is a reflection of its growth potential.
"One thing we have found very good in China is that people are very welcoming of new energy vehicles, and even though the history of automotive development in China is still relatively short, unlike the German automotive industry which has a very long history, people are very open in terms of accepting new models."
BMW Group Greater China president and CEO Gao Le said that Chinese consumers are younger, and young people in general are more receptive to innovation.
He thinks this is one advantage of the Chinese market - it is more receptive to innovation than the German market.
Gao Le introduced that BMW already has a very large investment in Shenyang, at the same time, just two weeks ago to open the second phase of high power battery factory.
In addition, BMW has three research and development centers in Shanghai, Beijing and Shenyang in China, with a total of 550 dealers, more than 470 of which are selling new energy vehicles.
For his part, Daimler Greater China CFO Shi Kun explained that Daimler launched a hydrogen fuel cell truck with a range of more than 1,000 kilometers in September.
"We believe this technology will be very suitable for heavy-duty trucks with medium and long range and fits very well with China's development strategy," Shi Kun said.