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The decision of the four ministries of the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology and the Development and Reform Commission to issue the Notice on Further Improving the Financial subsidy Policy for the Promotion and application of New energy Vehicles on March 26, 2019, not only confirmed the rumor of the subsidy "decline" of the new energy vehicle industry, but also increased its efforts.
Specific adjustment policies are shown in the following table (marked in red and adjusted) :
From the figure above, it can be seen that the government subsidies for new energy vehicles have greatly "declined", and the compensation of some projects has been reduced by even more than half. What does this mean for the new energy vehicle industry, which is supported by government subsidies?
Government subsidies prop up new energy car companies' profit half the sky '
Byd (002594) Financial data from fiscal year 2015 to fiscal year 2016 show that the company's net profit in these two years totaled 8.618 billion yuan. However, from the disclosure of information on the website of the Ministry of Industry and Information Technology on March 19, 2019, it can be seen that the total amount of subsidy funds for the promotion and application of new energy vehicles in 2016 and previous years is 12.58 billion yuan. Of these, nearly a quarter were vehicles from 2015, involving about 3 billion yuan in government subsidies; In 2016, the amount of relevant subsidies accounted for about three quarters, about 9.579 billion yuan. By such a simple comparison, BYD appears to have taken nearly a fifth of the aforementioned government subsidies for new energy vehicles.
The decline of government subsidies has not been small in its impact on new energy automobile companies. For new energy vehicle enterprises, the pain points to face are far more than that. The three major pain points in the development of new energy vehicles are "burning money", safety and product demand adjustment.
一、Long-term "burning money" : the fund gap is large
二、Safety has been questioned
According to the State Administration for Market Regulation, a total of 11 recall announcements were issued for new energy vehicles in 2018, with a cumulative recall of about 135,700 vehicles, accounting for about 1% of the total number of vehicle recalls in the year. Specifically, in 2018, the four independent brands of BAIC New Energy, Zotye Automobile (5.250, 0.13, 2.54%), Lifan Automobile, Jianghuai Automobile (5.080,0.13, 2.63%) recalled a total of 11,400 new energy vehicles, accounting for about 82% of the total number of new energy vehicles recalled in the year.
三、Weak product demand
Iresearch recently reported that government subsidies "decline" resulting in low mileage of new energy small and micro models demand dilution, the market mainly relies on subsidy policies to drive.
The market demand for new energy vehicles has begun to adjust, but problems such as relying on a high degree of government subsidies, large capital needs, and poor safety performance have always plagued major automobile companies.
So, how should new energy vehicle companies respond? Where is the next profitable growth point?
New energy vehicle enterprises new profit growth point
一、Commercialization of charging piles
The core accessories of new energy vehicles are batteries. Battery costs typically account for 50% of the cost of a vehicle, even if, for example, Tesla's battery costs account for more than 25%. As the driving energy of new energy vehicles, electricity is extremely dependent on offline charging piles. China Charging Alliance forecasts that 480,000 private charging piles are expected to be added in 2019, and 120,000 public piles are expected to be added, and the total number of charging infrastructure will reach about 1.4 million units by the end of 2019. The charging industry will usher in explosive growth, and related companies are expected to benefit.
二、New energy vehicle time-sharing leasing model
The report released by the State Information Center predicts that for every car shared, 13 car purchases can be reduced. The development and sharing mode of new energy vehicles not only conforms to national policies, but also meets the needs of society for low-carbon travel.
(Source: Sohu Auto)
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