A new round of struggle for the leading role in global automobile industry outbreaks universally, and the only left competitors are Germany, Japan, the U.S. and China. Germany and Japan own the most powerful traditional automobile industry in the world. The booming automobile industry will drive the transformation and upgrade of the overall economic structure in China.
In September, 2016, the supervisors of China's automobile industry proposed a Temporary Concurrent Management Regulation for Corporate Average Fuel Consumption (CAFC) and New-Energy Vehicle (NYSE:NEV) Credits for public comments, which stipulated that automobile enterprises operating in China must produce a certain proportion of new energy vehicles. The new-energy vehicle credits will be 8% in 2018, 10% in 2019 and 12% in 2020. Assuming that the sales volume of passenger cars is 30 million in China in 2020, the target NEV credits will be 3.6 million. Assuming that each new-energy car deducts 3 credits on average, the NEV production volume will reach 1.2 million in China in that year.
It is hard for China to realize subversion and reform of industrial structure in traditional fuel vehicle field, therefore the NEV field is a great opportunity for China to break the inherent pattern. There is no Chinese brand among the global TOP 10 fuel vehicle brands. However, 4 Chinese brands out of the global TOP10 new-energy cars with highest sales volume.
New Features of China's Automobile Industry
- Backed by the largest automobile market in the world, encourage all the automobile enterprises to develop electric automobiles through access administration in China.
- The government provides tens of billions of financial budget to subsidy and cultivate domestic electric vehicle industry.
- Promote and enlarge demand from the perspective of public utility including government procurement, public transportation and taxis.
- Encourage customers to buy electric vehicles from the perspective of the right of way.
- Limit the right of way and keep raising emission standard of fuel vehicles to increase cost of R&D and manufacturing of fuel vehicles.
- Support the construction of charging piles in various fields including infrastructure construction and capacity expansion of power grids, and form good service eco-system.
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