[SMM Analysis] the production and sales of new energy vehicles rose sharply in December, and the future is expected to be better.

SMM2: in December 2020, China's new energy vehicle market as a whole continued to be hot, with production and sales of 235000 and 248000 vehicles respectively, an increase of 17.3% and 22% month-on-month, and 7.5% and 10.9% respectively over the same period last year.

Careful observation of the data shows that in the classification of power types, pure electric vehicles and plug-in hybrid models show a situation of polarization, with production and sales of pure electric vehicles rising sharply across the board, while the trend of plug-in models is weak, except for the growth of plug-in passenger car sales. the rest of the data showed a sharp decline.

In addition, the overall production and sales of new energy passenger vehicles maintained steady growth, with production and sales of 214000 and 226000 vehicles in December, up 15.6% and 19.4% from the previous month. On the one hand, due to the near end of the year, the new energy subsidy policy is about to decline, bringing panic buying demand, in addition, the policy influence of local governments is still one of the key factors. For example, the Guangxi government has introduced new energy stimulus policies such as "local purchase of local cars by Guangxi people", driving a number of local car companies such as Wuling Hongguang mini, Baojun E series demand. The figures for commercial vehicles are even more eye-catching, with production and sales of 21000 and 22000 new energy commercial vehicles in December, a month-on-month increase of 38.5% and 55.7%. Mainly due to the recent near the end of the year, the local government bus procurement demand concentrated and broke out in December, driving upstream pure e-commerce vehicle sales rose sharply, but overall compared with the same period in 2019, still showed a sharp decline compared with the same period last year.

In terms of total volume, the new energy vehicle market in 2020 was hit by the epidemic at the beginning of the year, with sales plummeting by 70% at its lowest point, and the overall market was relatively cold, but as the epidemic was brought under control and new energy subsidy policies were introduced, the market gradually warmed up with the introduction of new energy stimulus policies around the country. Monthly sales in the market have increased significantly since July. By the end of December, the overall production and sales of new energy vehicles in 2020 were 136.6 and 1.367 million, an increase of 7.5% and 10.9% over the same period last year.

At present, the Chinese market is in the context of the gradual decline of the national subsidy policy, the new energy vehicle market has gradually shifted from policy-driven to consumption-driven, and the current technology of the new energy vehicle industry has initially met the travel needs of ordinary people. it is expected that the growth rate is still expected in the future.

Source: SMM, China Automobile Association