SMM: European market growth momentum is strong, the impact of the epidemic may be temporary
Sales of new energy vehicles in Germany, the UK and France continued to double in March from a year earlier, with 7.27 per cent in the UK, 9.2 per cent in Germany and 11.7 per cent in France. Norway accounted for an unprecedented 75 per cent of new energy vehicle sales in March. On the one hand, the European new energy vehicle market maintained last year's growth momentum, on the other hand, after December last year, with the gradual increase in subsidies in Germany and other countries, have to some extent hedged the negative impact of the epidemic. In view of the late outbreak in most European countries, the relevant factories have been shut down in late March (at present, most enterprises are tentatively scheduled to resume work in late April), so we expect the European market to be hit hard in April. However, in the face of increasingly stringent emission standards and fines in 2021, we believe that the relevant car companies will vigorously develop new energy vehicles. It has also laid an important foundation for stimulating the huge market potential of Europe.
New energy vehicles will contribute to steady growth, and relevant policy documents will continue to be good.
Affected by the superposition of macro-economy and epidemic situation, the whole automobile market of Q1 is in the doldrums in 2020, and the sales volume is halved. After entering April, with the gradual control of the epidemic situation in China, in order to ensure the healthy development of the automobile market, relevant policies to stimulate automobile consumption have emerged frequently, and new energy vehicles, as the new growth momentum of the automobile market, have also been strongly supported. We believe that the promulgation of the following policies and documents will greatly promote the recovery of China's new energy vehicle market after the epidemic:
The purchase-free tax policy for new energy vehicles has been extended for 2 years, and the retreating speed of the relevant subsidy policy has slowed down.
The consultation meeting of "New Energy vehicle Industry Development Plan 2021-2035" was held. It is proposed that the next stage of development in China will focus on further enhancing the market share of new energy vehicles, enhancing the penetration rate of new energy vehicles in township and rural markets, guiding and reducing costs through open competition, and improving the competitiveness of new energy vehicles at the same time. The public opinion draft of the Ministry of Industry and Information Technology on the revision of the regulations on the admittance Management of New Energy vehicle production Enterprises and products will no longer require enterprises to have "design and development capabilities" to reduce the threshold of entry, and extend the limit on the shutdown time of enterprises from the original 12 months to 24 months, which greatly improves the development flexibility of enterprises.