12V Dc Car Charger Cables,Car Cigar Lighter Cable,Auto Electrical Cables,12V Cigarette Cable ShenZhen Puchen Electronics Co., Ltd. , https://www.szpuchen.com
[Focus] The domestic auto market for new energy vehicles such as "Eight Immortals Crosses the Sea, Each Shows His Magic"
In recent years, the streets have seen a growing number of new energy vehicles, yet most traditional automakers still rely heavily on fuel-powered cars. While fuel vehicles remain dominant, the dual-integration policy is gaining traction, blending passenger car fuel consumption regulations with new energy vehicle integration. This policy places a strong emphasis on new energy vehicles, allowing companies to compensate for fuel consumption deficits by leveraging positive credits earned through new energy vehicle production. Conversely, new energy vehicle credits can only be balanced by similar positive credits.
This effectively sets a mandatory quota for new energy vehicle production. Recently, Zheng Lixin, spokesperson for the Ministry of Industry and Information Technology, announced that the dual-integration policy, which requires new energy vehicle proportions of 8%, 10%, and 12% from 2018 to 2020, will soon be formally released. These targets mean automakers must either produce enough new energy vehicles or purchase credits from others, impacting their fuel vehicle output.
The Chinese government has long prioritized new energy vehicles, with the auto market surpassing the U.S. in 2009. By 2016, China's annual vehicle production exceeded 28 million, leading globally for eight consecutive years. Environmental concerns and market demand have driven the government to support new energy vehicles since 2009, issuing numerous policies and incentives.
The "Mid-term and Long-term Development Plan for the Automotive Industry," released in April 2017, aims for new energy vehicle sales to reach 2 million annually by 2020. Adjustments to financial subsidies have reduced incentives, with subsidies expected to cease entirely by 2020. Despite this, the dual-integration policy provides long-term stability by incentivizing fuel-efficient vehicles while promoting new energy vehicles. Companies like BYD and BAIC, early adopters of new energy technology, are well-positioned, whereas traditional automakers face challenges.
Domestic brands exhibit varying levels of progress in new energy vehicles. BYD, Geely, and BAIC dominate sales, while others like Great Wall Motors lag behind. Great Wall recently announced a 30 billion yuan investment in expanding its new energy lineup, launching its first model, the Great Wall C30EV, earlier this year. International automakers are also responding to the dual-integration policy. BMW, Nissan, Honda, and Toyota are accelerating their new energy strategies in China, with some forming joint ventures to meet compliance requirements.
For instance, Volkswagen partnered with JAC to generate new energy vehicle credits, securing rights to purchase these credits. Similarly, Daimler invested in BAIC's new energy initiatives to mitigate impacts on its fuel vehicle sales. As the 2018 deadline approaches, automakers are adopting diverse strategies to adapt to the new landscape. Some pioneers are capitalizing on opportunities, while late entrants face uncertainty about their ability to catch up.