China's new energy market can be said to be the largest proportion of the future automotive sector, and with the support of the government, China has gradually completed the transition from traditional to new energy. 2016 is the first year of the 13th Five-Year Plan to understand the Chinese market. The development of the big environment is the foundation for the company to lay a development path. What are the serious challenges facing China's new energy vehicle market? Let's start the analysis.
External troubles: strong competition from foreign companies, price competition of batteries
From the perspective of foreign companies, Tesla, GM, and Nissan have always attached great importance to the market share of China's new energy vehicles. Subsequently, companies such as Volkswagen, BMW, and Toyota have also changed their minds and waited for the Chinese new energy market. The foundation, combined with the good channels laid down in the Chinese market for many years, the strong capital has brought heavy pressure on China's new energy companies.
On the other hand, in 2015, China's power lithium battery production for electric vehicles was 15.9GWH, an increase of 356.7% year-on-year. The current new energy reliability is electric drive, and battery technology development is also a foreign company such as Samsung, LG, Panasonic. Mastering a huge market share, from this point of view, China has lost its initiative. Although China’s capital is under tremendous pressure to acquire some foreign companies, it intends to resist this one-sided situation, but in the face of ultra-low price 1 yuan/wh competition decision, China Battery companies are also slightly weak. Corporate strategy/government strategy has even changed to adapt to the new situation in a year or two, facing a strong enemy, but the golden time for overtaking in China's corners is not much.
Internal worry: the withdrawal of government subsidies, the occurrence of fraudulent incidents, imperfect infrastructure
China has leapt to the world's first new energy vehicle market, but the central government's universal subsidy will gradually decline and will be withdrawn in 2020. Under the situation that local subsidies are withdrawn early or become a trend, BYD, BAIC, Geely and Chang'an will be used. Whether the representative electric vehicle enterprises can adapt to the gradual and even pure market-oriented competitive environment is still a problem.
The fraudulent incident has brought huge negative effects to China's new energy auto industry. The black clouds of the past “home appliance fraud†have not yet dispersed, and now new energy vehicles are cheating. The main incentive is that the industry is in the early stage of the outbreak, and the relevant policies are not perfect, resulting in some people drilling policy loopholes and opportunistic.
As of the end of June, 81,000 public charging piles have been built nationwide, and more than 50,000 private charging piles have been built with the car. It is still a long-standing problem. Users have already had negative impacts such as “mileage fearâ€, showing the importance of the foundation. With the rise of the private sector market, the construction of personal charging piles in the future is a pain point that the industry must solve.
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