[SMM Analysis] Hunan Province's Special Campaign to Boost Consumption Revitalizes the NEV Industry

On March 28, 2025, the General Office of the People's Government of Hunan Province officially issued the "Hunan Province Action Plan to Boost Consumption" (hereinafter referred to as the "Plan"). The Plan systematically promotes the expansion of NEV consumption and industrial upgrading through supply and demand-side reforms, scenario innovation, and policy coordination. I. Core Policy Objectives and Quantitative Indicators The sales of passenger NEVs are expected to account for over 40% by 2025, a significant increase from the current market penetration rate (assumed to be 25% in 2023), requiring an average annual growth of more than 5 percentage points. The cumulative target for charging piles is 500,000, with a focus on covering urban public areas and county markets, where the participation of social capital in charging infrastructure construction becomes a key pathway. Through the trade-in policy, it is expected to drive sales in the automotive, home appliance, and home decoration sectors exceeding 80 billion yuan, with NEV replacement subsidies and old battery discount recycling policies stimulating replacement demand. The proportion of NEVs in newly added and updated official vehicles will increase by more than 10%, strengthening the demonstration effect of government procurement on the market. Optimization of peak and valley electricity prices: Adjust the time-of-use electricity price policy for EV charging to reduce the full-cycle usage costs for users. II. Policy Implementation Pathways and Industry Opportunities Income growth and cost optimization: Enhance residents' car purchase affordability through income-increasing and burden-reducing policies such as vocational skills training and expanded medical insurance reimbursement coverage; combined with NEV purchase tax reduction and exemption and trade-in subsidies (up to 15% for new car purchases), further lower the threshold for car purchases. Alleviating usage anxiety: The target of 500,000 charging piles will ease "range anxiety," especially in county markets where the pilot of integrated PV ESS charging stations (such as Sungrow's "PV + cold chain logistics" model in Shandong) can expand coverage in lower-tier markets. Accelerating technological iteration: Policies encourage the integrated development of "vehicle-energy-road-cloud," promoting the application of intelligent connected technologies. Circular economy layout: The pilot policy for cascade utilization of power batteries drives GEM to build a "battery bank" platform, using blockchain technology to monitor battery health and reduce cascade utilization costs by 40%. Integration of low-altitude economy: Pilot projects in Zhangjiajie and Changsha for low-altitude flight experiences and drone light shows may generate charging demand for new energy aircraft (eVTOL). III. Industry Challenges and Execution Risks Local fiscal fulfillment capacity: In one province, the actual disbursement rate of NEV replacement subsidies was less than 60%, necessitating attention to the efficiency of subsidy fund allocation in Hunan Province and the central-local coordination mechanism. Technical standards and regulatory lag: The lack of unified standards for autonomous driving data security and charging facility compatibility may constrain user experience. It is recommended to establish a tiered control system with reference to the EU's "Artificial Intelligence Act." Intensified market competition: Sales targets compel automakers to increase supply, but the risk of price wars may squeeze profit margins, necessitating attention to differentiated product layouts (such as high-end EV models and commercial electric trucks). IV. Investment and Industry Recommendations Charging infrastructure operators: Such as Teld and Star Charge in Hunan; Intelligent connected technology companies: Involving vehicle-road coordination and virtual power plants (such as Tesla's Powerwall household ESS); County market penetration: Develop economical EV models and fast charging solutions suitable for rural markets in conjunction with policy-supported county logistics distribution system construction; Binding with cultural and tourism scenarios: Cooperate with scenic areas to build integrated "green transportation + tourism" projects, such as electric shuttle buses and charging pile-ticket linkage discounts in Zhangjiajie scenic area. Hunan Province's policy positions NEVs as the core lever for consumption boosting, promoting the industry's transition from "policy-driven" to "market-driven" through the trinity strategy of "sales target-infrastructure guarantee-scenario innovation." If implemented effectively, Hunan may become a new growth pole in the central and western NEV markets and provide a fusion sample of "green consumption + industrial upgrading" for the nation. SMM New Energy Industry Research Department Cong Wang 021-51666838 Rui Ma 021-51595780 Disheng Feng 021-51666714 Yanlin Lyu 021-20707875 Zhicheng Zhou 021-51666711 Haohan Zhang 021-51666752 Zihan Wang 021-51666914 Jie Wang 021-51595902 Yang Xu 021-51666760 Bolin Chen 021-51666836