According to data from the China Association of Automobile Manufacturers, new energy vehicles sold 1.206 million units in the first half of this year, a year-on-year increase of 201.5%. Among them, sales of pure electric passenger vehicles reached 941000 units, a year-on-year increase of 244.1%. The export of new energy vehicles was 88000 units, a year-on-year increase of 298.1%. The penetration rate of new energy vehicles has also increased from 5.4% at the beginning of the year to 9.4% in the first half of the year, with a penetration rate exceeding 12% in June. In the first seven months of this year, the sales of new energy vehicles in China reached 1.478 million units, accounting for 10% of the overall car sales.

Analysts believe that reaching 10% of new energy vehicle sales is an important milestone, and the new energy vehicle market may usher in a turning point. The development speed of the industry may further accelerate in the future. At present, the new energy vehicle industry is gradually entering a new stage of accelerated development from the cultivation period.

The development of the new energy vehicle industry meets the needs of national development

The new energy vehicle industry is related to two basic national policies: environmental protection and emission reduction, and energy structure adjustment.

The automotive industry is the world's largest industry, and its strength is a barometer of a country's manufacturing level. Developing Chinese standard intelligent electric vehicles is an important strategic choice for China to accelerate the transformation and upgrading of the automotive industry, cultivate new advantages in industrial development, enhance the comprehensive strength of the country in the new era, and catch up with or even surpass traditional automotive powers in Europe, America, and Japan.

According to the Development Plan for the New Energy Vehicle Industry (2021-2035) issued by the General Office of the State Council, the sales volume of new energy vehicles in China is expected to reach about 20% of new sales vehicles by 2025, and pure electric vehicles will become the mainstream of new sales vehicles by 2035. To achieve the planned goals, the sales volume of new energy vehicles in China needs to reach 5.55 million units by 2025, an increase of about 406% compared to 1.366 million units in 2020, with an average annual growth rate of over 30%.

Therefore, the 14th Five Year Plan period will be the golden period for the development of China's new energy vehicle market. Electrification and intelligence, as the two core elements of future automobiles, have become important evaluation indicators for the construction of the automobile power's capability system and comprehensive competitiveness. After several years of turbulence, new energy and intelligent vehicles have become new hotspots for local governments and capital to invest in.

The prospects for industrial development are promising, and policy documents are being strengthened in advance

The new energy vehicle industry had already made multiple pre emptive measures before recently receiving policy support.

Firstly, the establishment of the "dual carbon" target. The "dual carbon" target will stimulate new opportunities for the development of the new energy industry, and the proportion of new energy power generation installed capacity in the power structure will further increase. Scholars suggest that in the future, new energy vehicle companies can be included in carbon trading, and through carbon credits trading, the development of the new energy vehicle industry can be encouraged

Next is the implementation of the "two integrations" document. Integration can promote high-quality development of the new energy industry, and the level of clean energy utilization and power system operation efficiency will be further improved;

The third point is that in different regulatory contexts, it has been stated that the supervision of the operation of the new energy industry will continue to be strengthened; Finally, the financial support for the renewable energy industry has been increased, greatly improving the cash flow situation of renewable energy enterprises and promoting the healthy development of the industry.

Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Committee, said, "The favorable policies for the transformation and development of the automotive industry reflect the country's determination to drive consumption and promote carbon neutrality through new energy vehicles. In addition, it can effectively enhance market confidence in the development of the new energy vehicle industry, and new energy vehicle stocks will also show a long-term positive trend

How to develop and improve the industrial chain and supply chain in a new industrial track

New energy vehicles are a new industry track that will form a new industrial pattern of vehicle manufacturing and core components. The new energy vehicle industry chain consists of top-level technology, upstream material end, midstream core equipment components, and downstream vehicle and aftermarket.

The number of components in new energy vehicles is only 20% of that in traditional vehicles, and core components such as batteries, motors, and electronic controls are where the value lies. The importance of the entire vehicle process has greatly decreased, and traditional car companies no longer have the advantage of engine technology and supply chain integration. This has made it possible for China to achieve overtaking in the automotive industry.

In the upstream raw material chain, China has abundant mineral resources, such as the continuous discovery of large lithium mines and rare earth resources with the world's largest reserves, laying the foundation for the development of raw material enterprises;

In the midstream component chain, core assets such as global power battery leader CATL have emerged, and the localization of Tesla and Volkswagen MEB will also provide growth opportunities for domestic component suppliers;

In the downstream vehicle and service chain, companies such as BYD and Topu Group have benefited from China's vast new energy vehicle market and quickly become leading global providers of new energy vehicles and services. When the trend of the new energy vehicle industry revolution approaches, the core assets that stand out from the waves of supply side reform will continue to benefit from it.

Policy planning related to Beijing's new energy vehicle manufacturing industry

According to the "13th Five Year Plan for Strengthening the Construction of National Science and Technology Innovation Centers in Beijing", by 2020, Beijing has built the largest domestic research and application center for new energy vehicles, achieving an overall international leading level. At the same time, actively deploying the development and demonstration of fuel cell vehicles and intelligent vehicles, and creating an intelligent vehicle innovation center with global influence. We will comprehensively build three new energy vehicle industry bases in Daxing, Changping, and Fangshan districts, with a focus on supporting complete vehicle enterprises such as BAIC Group and Changan Automobile. The city's pure electric vehicle production capacity will reach 500000 units, and the unit energy consumption of complete vehicles will reach 8.9 kWh/100 kilometers · ton.

According to the "14th Five Year Plan for National Economic and Social Development of Beijing and the Long Range Objectives by 2035", by 2025, the cumulative number of new energy vehicles in the city is expected to reach 2 million, and the electrification rate of vehicles will increase from the current 6% to 30%. To achieve the goal of 2 million vehicles during the 14th Five Year Plan period, Beijing needs to leverage at least 1 million existing fuel vehicles to replace them with new energy vehicles. Under the vision of "peak carbon emissions and carbon neutrality", the electrification rate of automobiles in Beijing needs to reach over 90%.

At present, the development process of new energy vehicles in most fields is still in the stage of constructing new transportation organization models, and some fields are still in the product validation stage, facing various problems such as charging facilities, costs, and technology.