The backfire of the new energy vehicle industry is also plagued by bleakness, smallness, chaos and lack of research and development capabilities.

Just in the past 2017, new energy vehicles have become the world's largest bright spot in the domestic auto market, with production and sales of new energy vehicles being the first in the world, vigorous internet building, and the “dual integral” policy being formally launched. Based on the sales volume of 777,000 vehicles in 2017, the China Association of Automobile Manufacturers predicts that domestic sales of new energy vehicles will increase by 40% in 2018, impacting the one million mark. However, under the background that the subsidy is declining year by year and the “double-integration” approach is about to be implemented, the auto companies involved in the new energy sector also need to solve problems such as lack of R&D innovation capability and product quality.

The new energy automobile industry spawned

“Without indicators, only new energy vehicles can be selected. There is no other choice.” Chen’s experience in buying a car from Beijing is very representative. In Beijing, the 26th day of each dual month is the day when the vast majority of shakers “continue to hope and continue to disappoint”. Repeated reductions in ordinary passenger car indices have made it difficult to win new records. In the face of nearly 900 individuals robbing an ordinary passenger car index, many prospective owners have to shift their focus to pure electric cars.

According to the data released by the China Association of Automobile Manufacturers, in 2017, the production and sales of new energy vehicles in China completed 774,000 vehicles and 777,000 vehicles, respectively, a year-on-year increase of 53.8% and 53.3% respectively. The China Association of Automobile Manufacturers predicts that sales of new energy vehicles in China will increase by about 40% in 2018. The sales of new energy vehicles will reach 1 million. Auto companies will launch more competitive new energy models.

At present, the competition for new energy vehicle market is becoming more and more fierce. Traditional giants such as Geely, BYD, Volvo and Mercedes-Benz have all overstretched the R&D, production and delivery of new energy vehicles, and even listed companies such as Gree, Wuliangye, and GCL. Cross-border carmakers have also been spread out and they want to share a slice.

Will enter the market-driven stage

Although the overall market prospects can be expected, Xin Guobin, vice minister of the Ministry of Industry and Information Technology pointed out that the development of new energy can not be done quickly, and the new energy automobile industry still has the status of scattered, small and chaotic industries, and the product's safety risks also exist to some extent. The problems that need to be solved urgently have not been completely reversed and breakthroughs have been made.

The subsidy retreat, and the official launch of the “double-integration” approach in September 2017, can be seen as a correction at the government level to some extent. Recently, the rumors about “subsidies for new energy vehicles will be substantially reduced in 2018” and “subsidies for the new government will be introduced” appear, making consumers and dealers wait and see. In fact, as early as the end of 2016, several ministries and commissions such as the Ministry of Finance, the National Development and Reform Commission, and the Ministry of Industry and Information Technology have made it clear that subsidies for new energy vehicles will be declining year by year from 2017 to 2019 and will be completely withdrawn in 2020. At the China Electric Vehicles Centennial Party Forum (2018) held recently, Miao Wei, Minister of the Ministry of Industry and Information Technology, emphasized that "subsidy policy will be adjusted, and in fact this adjustment is imperative." The "double-integration" policy is a concrete manifestation of "adjustment is imperative." The time for the adjustment of the purchase subsidy for vehicles has been put in place. One node is to subsidize the slope by 20% in 2019, and the other is to withdraw completely after 2020.

Experts in the industry have also called for the cancellation of local direct subsidies to auto makers and cut down on local protection. The industry believes that local financial support should be mainly used to build a good new energy automotive application environment, such as supporting infrastructure construction, subsidizing electricity bills, parking fees, etc., and realizing the funds for the demand side, that is, the users of new energy vehicles. It is reported that Beijing may be the first to withdraw from local subsidies in 2018.

In the future, subsidies will retreat and new energy vehicles will enter the market-driven phase. The guiding role of the “dual-integration” policy, which will be implemented on April 1, 2018, will become increasingly important. Xin Guobin revealed that according to the Ministry of Industry and Information Technology, some companies are still facing certain standards of pressure. Taking 2016 as an example, of the 123 auto companies, 42 companies did not meet the requirements for fuel consumption standards, among which there are also large-scale production and sales companies, and many companies have plans for the deployment of new energy vehicles from 2019 and 2020. There is still a certain gap between the annual points ratio requirements.