China's New Energy Vehicles Are Galloping Along The Way

In September 2020, the cumulative production of new energy vehicles in China reached 5 million units, breaking through 10 million units in February 2022, and reaching a new level of 20 million units in July 2023, taking only one year and five months.

The industry claims that China's automotive industry is steadily advancing towards high-quality development, while new energy vehicles provide a new "race track" for the transformation, upgrading, and high-quality development of China's automotive industry.

 

Industry Press "Acceleration Key"

According to data from the China Association of Automobile Manufacturers, in the first half of the year, the production and sales of new energy vehicles in China reached 3.788 million and 3.747 million, with year-on-year growth of 42.4% and 44.1%.

At the same time as strong production and sales, the increase in exports means an increase in the international recognition of Chinese brands. In the first half of the year, China exported 2.14 million vehicles, a year-on-year increase of 75.7%, surpassing Japan in export volume and ranking first in the world. Among them, 534000 new energy vehicles were exported, a year-on-year increase of 160%.

New energy vehicles also performed well at the exhibition. Recently, at the 20th Changchun International Automobile Expo, many visitors consulted and purchased cars at the Guangzhou Automobile Aian exhibition area. Salesperson Zhao Haiquan excitedly said, "We ordered over 50 cars in one day

Since the beginning of this year, there has been a significant increase in the frequency of visits and exchanges among major multinational car companies at major automobile exhibitions and local new energy vehicle brand booths.

Zhu Yifang, Director of the Industrial Policy Research Department of the China Automotive Strategy and Policy Research Center at the China Automotive Center, stated that in recent years, policies have pressed the "accelerator button" for industrial development, and China's new energy vehicle industry has gradually shown advantages in scale and quality.

Industry experts believe that the production of new energy vehicles in China has exceeded 20 million units, marking that China's new energy vehicles are entering a new stage of high-quality development in scale and globalization on the basis of industrialization and marketization.

 

Perspective on high-quality development "password"

In 2008, China launched its first development plan for the new energy vehicle industry and has since embarked on a high-quality development path in China.

 

What does the rise of China's new energy vehicle industry rely on?

One is strong policy support. The industry has developed rapidly and policy guidance has played a huge role, "said Fu Bingfeng, Executive Vice President of the China Association of Automobile Manufacturers.

According to statistics, in recent years, various departments across the country have launched more than 70 support measures, and various regions have also introduced relevant supporting policies based on their own actual situations. From implementing industrial technology innovation projects to establishing national manufacturing innovation centers such as power batteries, a series of measures have made the direction of industrial development clearer and the pace more firm.

The second is to transform market advantages into industrial advantages. As China actively promotes the popularization and application of new energy vehicles, accelerates the construction of charging infrastructure, and continuously unleashes market vitality and consumption potential, the support from the consumer side has also fully mobilized the enthusiasm for industrial transformation, thereby driving innovation throughout the entire industrial chain.

Wu Kai, Chief Scientist of Ningde Times New Energy Technology Co., Ltd., said that the rapidly growing market, from material systems to battery structures, has driven the power battery industry to the forefront.

The third is to adhere to independent innovation. After years of cultivation, China has a relatively complete industrial system and technological advantages in the field of new energy vehicles.

No matter how difficult it is, we cannot save on research and development, "said Yin Tongyue, the chairman of Chery Automobile Co., Ltd. Technology innovation is the core competitiveness, and Chery spends about 7% of its annual sales revenue on research and development investment.

The fourth is the continuous improvement of the industrial chain. From core components such as batteries, motors, and electronic controls to vehicle manufacturing and sales, China has created a relatively complete new energy vehicle industry chain system.

In the Yangtze River Delta, with the coordinated development of industrial clusters, a new energy vehicle factory can provide the necessary supporting parts within a 4-hour drive: Shanghai provides chips and software; Provide power batteries to Changzhou, Jiangsu, about 200 kilometers west; Ningbo, Zhejiang, more than 200 kilometers south, provides integrated body die-casting machines.

In the past, competition relied on specialized technology, but today it relies more on 'chain', "said Xu Jun, Senior Vice President of Zero Run Automobile. Relying on integrated innovation to consolidate and expand the advantages of the industrial chain is crucial for promoting the high-quality development of the industry.

 

Consolidate advantages and seize the opportunity to move forward

China's new energy vehicles are reshaping the competitive landscape of the global automotive industry and continue to attract top global car companies to accelerate their layout in the Chinese market.

Following the joint development of new energy vehicle models by Toyota and GAC in Japan, and the establishment of a global research and development headquarters for new energy vehicles by Volkswagen in Anhui, Volkswagen Group recently acquired 4.99% of Xiaopeng Automobile for $700 million to jointly develop electric vehicle products.

Industry insiders believe that in the era of gasoline vehicles, multinational car companies often collaborate with Chinese car companies to export technology in a one-way manner, with China exchanging technology for the market. This time, Xiaopeng collaborated with Volkswagen to obtain technology to expand the market, which has become the main goal of Volkswagen.

From one-way output to two-way cooperation, China's automobile industry will inject more force into the transformation of the world's automobile industry. "Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Conference, said that in 2022, China's new energy passenger cars accounted for 63% of the world market share, and the industrial advantage is becoming increasingly evident.

To consolidate development advantages, it is even more necessary to make up for shortcomings. "Zhu Yifang said that compared to multinational car companies, local brands still have certain gaps in brand value, technology research and development, global industrial layout, and other aspects. Therefore, consolidating advantages, enhancing brand awareness, and achieving sustainable development have become the focus of promoting high-quality industrial development in the next step.

Fu Bingfeng believes that the development shortcomings of the industry chain such as chips, basic software, and key materials need to be continuously addressed. The problems of overcapacity and imbalanced development brought about by industrial transformation still need to be solved continuously in high-quality development.

In the view of Li Xueyong, General Manager of Jietu Automobile, automotive companies not only need to have technological and industrial chain advantages but also need to make long-term arrangements in the market, especially overseas markets.