New Energy Vehicles Entering Mass Production Thresholds in China May Be the Biggest Market by 2020


With the shortage of energy resources and rising oil prices, new energy vehicles are undoubtedly becoming more and more important for many car companies to develop and introduce. The reduction of vehicle costs and government subsidies also make new energy vehicles increasingly attractive to consumers. What is more exciting is that some of the new energy vehicles debuted at the Guangzhou Auto Show are looking for opportunities to accelerate access to the homes of ordinary people.


Not playing virtual new energy vehicles more and more reliable


In the past, new energy vehicles always gave people a feeling of "thunder and rain." Although there are many new cars, they are mostly concept vehicles. As soon as the heat is over, there is no shadow. This time, new energy models are playing really! At the just-concluded Guangzhou Auto Show, a large number of new cars and new technologies are making a comeback. Even more commendable is that the new models are mostly mass-produced hybrid models, more for ordinary consumers, and new technologies are also more pragmatic.


Shanghai GM announced at the Guangzhou Auto Show that its first domestically produced new energy product, the Sail SPRINGO pure electric vehicle, has become the first domestic electric vehicle to be produced in a joint venture. According to the plan of Shanghai General Motors, mass production of electric vehicles, plug-in hybrid vehicles and next-generation pure electric vehicles will be gradually implemented in the next five years. Shanghai GM will also set up an exclusive sales and customer experience showroom for new energy products.


Toyota’s new energy plan is still ambitious. Of the 46 models exhibited at the Guangzhou Auto Show, 12 are hybrids, plug-in hybrids, and pure electric vehicles, which account for nearly 30% of the models displayed. It is estimated that by 2015 Toyota’s energy-saving new energy models will account for 20% of its overall sales.


During the auto show, Volkswagen stated that electric vehicles and hybrid technologies are all making efforts. Both technologies are planned to be launched in China and its “blue future” plan is gradually being realized in China. SAIC Motor also demonstrated its first electric vehicle for general consumers, the Roewe E50, at the Guangzhou Auto Show.


Energy cars target the future huge market


From a national perspective, on July 9 this year, the State Council officially issued the "2012-2020 Development Plan for Energy-saving and New Energy Automobile Industry", which clarified the two goals of sales volume and energy consumption. By 2020, the production and sales of new energy vehicles will be 5 million vehicles. At the same time, the vehicles that are listed and sold must meet the requirement of 100 kilometers of fuel consumption below 5 liters. This will force new energy vehicles to speed up the road. From the local perspective, localities light up the “green light” for new energy vehicles and energy-saving and environmentally friendly vehicles.


On December 3, the Ministry of Industry and Information Technology publicized the preliminary “Project to be supported by the 2012 New Energy Automotive Industry Technology Innovation Project”. From the list, the 25 projects include pure electric vehicles, plug-in hybrid vehicles, fuel cell vehicles and power battery projects, involving Jianghuai Automobile, Dongfeng Automobile, Changan Automobile, BYD, Great Wall Motors, SAIC, etc. Automotive listed company.


According to the SAIC Group, since SAIC Motor’s purchase restriction, SAIC’s local sales have steadily increased. This is mainly because the subsidy and free-licensing policies in the Guangzhou auto sales restriction policy have promoted the sales of energy-saving and new energy vehicles, while SAIC’s brands are Guangzhou's main energy-saving models have taken the lead in the structural transformation of the Guangzhou automobile market. In Shanghai's upcoming encouragement policy, the purchase of new energy vehicles will receive a free special license, which is also a major selling point for consumers.


Optimistic industry figures predict that by 2020 China will become the world's largest market for new energy vehicles, while investing at least 10 billion yuan in this market each year.



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