TU-TESL

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Entering the "golden nine", the decline of sales volume in China's overall car market has not been curbed. As of September, China's overall vehicle market sales have declined for 15 consecutive months. More than that, the booming new energy vehicle market has also experienced negative growth for three consecutive months. July is the first month after the end of the new policy transition period of new energy vehicle subsidy in 2019, and it is also the first month in which the sales volume of new energy vehicles in China has a negative growth in two years. "The reason for the decline in sales of new energy vehicles under the company is that it is greatly affected by the sharp decline of new energy subsidies", which is frequently mentioned in the three quarterly reports disclosed by a number of domestic listed vehicle enterprises. According to the requirements of the new energy subsidy policy in 2019, after the transition period of the subsidy on June 25, those who buy new energy vehicles (excluding new energy buses and fuel vehicles) can no longer enjoy the subsidy provided by the local government, and the state subsidy is reduced by more than 50%. This indicates that after June 25, consumers may be more expensive to buy new energy vehicles. Affected by this, many trade-offs between new energy vehicles and fuel vehicle owners finally choose fuel vehicles. In addition, before the end of the transition period of the subsidy new deal, a large number of consumers bought new energy vehicles in advance, and their consumption power was overdrawn in advance, which also made the growth of new energy vehicle market weak after July. In fact, the gradual withdrawal of new energy subsidies is a well-known fact for car companies and consumers. The countdown to the exit of the new energy subsidy makes some consumers who can get more subsidies more rational when choosing cars. Next, in addition to some restricted cities, consumers will choose to buy more new energy vehicles. Consumers in other regions, in the absence of subsidies, should consider more about the cost performance and charging convenience of the vehicle, rather than which vehicle is subsidized more. This also means that China's new energy vehicle market will usher in a turning point in the withdrawal of subsidies. According to relevant regulations, after 2020, China's new energy subsidies will all exit, and the new energy vehicle market will be driven by policies into the market. After returning to the market, consumers will pay more attention to the practicability and cost performance of the new energy vehicles. In order to win the market, automobile enterprises should not only strive to improve the core technology of new energy, but also understand the diversified needs of consumers. It is undeniable that the new energy subsidy policy has laid a foundation for the development of new energy vehicles in China, and has also made more and more consumers recognize and accept new energy vehicles. At present, the sales volume of China's new energy vehicles has ranked first in the world, becoming the world's largest new energy vehicle sales market. Along with the gradual decline of subsidies, when the car market returns to rely on products, consumers will also choose the most suitable model by comparing the products. For example, consumers put forward higher requirements for the selection criteria of vehicles, including vehicle shape design, comfort, intelligence, driving range, safety, service, etc. Of course, a sound charging infrastructure is the key to the rapid development of new energy vehicles in China. According to data released by China electric vehicle charging infrastructure promotion alliance, as of September 2019, member units of the alliance reported 466000 public charging piles, including 271000 AC charging piles, 195000 DC charging piles and 549 AC DC integrated charging piles. However, according to the published data, the layout of domestic charging piles is not uniform, mainly concentrated in a few cities, such as Beijing, Shanghai and Guangzhou, and the infrastructure supporting facilities in most other cities are not perfect. It is worth mentioning that for those consumers who still hold a wait-and-see attitude towards new energy vehicles, the reason why they can't make up their minds to buy new energy vehicles is largely due to inconvenient charging and mileage anxiety. Because of this, the state financial subsidies began to shift from subsidies for new energy vehicles to support infrastructure construction. The withdrawal of government financial subsidies and the entry of new energy products from foreign vehicle enterprises will bring a sense of crisis and urgency to domestic new energy vehicle enterprises. The increasingly fierce market competition will also bring a new round of "reshuffle" to the new energy vehicle market.