The decline in the passenger car market has improved and new energy vehicles performed brightly in the first half of the year.

Published: Jul 9, 2019 11:37

SMM7, March 9, 2019: on March 26, 2019, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Development and Reform Commission jointly issued the notice on further improving the Financial subsidy Policy for the Popularization and Application of New Energy vehicles. The new subsidy policy has increased the intensity of slope retreat on the basis of 2018, with an average retreat rate of 50% for passenger cars, passenger cars and special purpose vehicles. At the same time, the new policy has also abolished land subsidies and replaced them with subsidies for infrastructure such as charging / hydrogenation.

On June 25, the three-month subsidy retrogression transition period ended, and the new subsidy policy in 2019 has been officially implemented since June 26. At present, Beijing, Chongqing and other places have issued documents to implement the latest standards. Beijing announced the abolition of ground replacement for pure electric vehicles from June 26; fuel cell vehicles are still subsidised in accordance with central 1 / 0.5. Chongqing, on the other hand, has changed its policy focus from "car replacement" to "electricity replenishment", and has strengthened its support for infrastructure construction such as charging piles and hydrogen filling stations.

Judging from the current position of automobile manufacturers, in addition to BYD, GAC New Energy, Weima and other auto companies insist not to raise prices, BAIC New Energy, Geely, SAIC New Energy and Great Wall Euler and other car companies said they would fine-tune appropriately.

Passenger car sales ended nearly 12 months of decline in June, driven by mysterious forces. For the first time in 12 months, China's narrow passenger car sales reached 1766040 in June, up 11.6% from the previous month and 4.9% from a year earlier. From January to June, the cumulative sales of narrow passenger cars in China was 9954232, a decline of 9.3 per cent.

It is worth noting that in the first six months of this year, the car market in the cold winter, new energy vehicles have become a major bright spot in the car market. A number of domestic new energy vehicle enterprises increased their sales of new energy vehicles in the first half of the year.

On July 8th Geely released sales figures for June. According to the data, in June 2019, Geely sold 90900 vehicles, up 0.63 percent from the previous month, down 29.25 percent from the same period last year. In the first half of the year, Geely's cumulative sales reached 652000, while the cumulative sales of new energy and electrified models reached 57600, an increase of 301.06 percent over the same period last year.

On July 5, BYD shares announced its first-half sales results. In June 2019, BYD sold 38700 vehicles, up 3.1% from a year earlier, while new energy vehicles sold 26600 vehicles, up 55.5% from a year earlier, and 12100 fuel vehicles, down 40.63% from a year earlier, according to the data. In the first half of 2019, BYD sold 228100 vehicles, an increase of 1.59 percent over the same period last year. Of these, sales of new energy vehicles totaled 145700, up 94.5 percent from a year earlier, and sales of fuel vehicles totaled 82400, down 44.91 percent from a year earlier. Sales of new energy vehicles have accounted for 64% of BYD's overall sales, making it the main driver of BYD's car sales.

Recently, Chery also released June sales of KuaiBao. In June, Chery sold 46500 vehicles, up 8.7% from a month earlier and 6.8% from a year earlier. Of these, sales of new energy vehicles were 7253, up 74.1% from a month earlier and 14.2% from a year earlier. From January to June this year, Chery car sales totaled 284500, an increase of 8.5% over the same period last year, in the overall domestic car market downturn, continue to maintain the momentum of counter-trend growth.

On July 5, Jianghuai Automobile announced the production and marketing of KuaiBao in June. According to the data, in June 2019, Jianghuai car sales were 32000, up 11.47% from a year earlier, of which 9842 were pure electric passenger cars, up 429% from a year earlier. From January to June, Jianghuai sold a total of 235200 new cars, down 6.78 percent from a year earlier, of which 39000 were pure electric passenger cars, up 95 per cent from a year earlier.

When new energy subsidies entered the transition period in June, new energy vehicles were still wholesale 134000, an increase of 38.7 percent over the previous month, an increase of 98.7 percent from January to June over the same period last year, and a total of 577000 new energy narrow passenger vehicles from January to June, an increase of 65.9 percent over the same period last year, indicating that the new energy vehicle market has undergone a rapid transformation from policy promotion to market promotion. Some people believe that the wholesale sales of new energy vehicles have risen during the subsidy transition period, which means that "new energy passenger cars are gradually getting rid of their dependence on policy."

At the same time, the rapid expansion of demand for electric vehicles in the online ride-hailing and taxi market has also become a factor in the continuous increase in electric vehicle sales, and the travel market also provides sufficient space for the future development of electric vehicles. Coupled with the implementation of the "double points" policy, outstanding independent brands will continue to invest in the research and development of new energy vehicles in the future. Thus it can be seen that China's new energy vehicle market still has great potential for development.

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