Policy Continuation, Strength, Matching, Optimization and Upgrading —— A "Great Article" on New Energy Vehicles Going to the Countryside in China

  Xinhua News Agency, Beijing, June 9th Title: Policy Continuation, Force Support, Optimization and Upgrade — — China’s "big article" on new energy vehicles going to the countryside

  Xinhua News Agency reporters Gao Kang, Wu Huijun and Wang Cunfu

  Recently, the National Development and Reform Commission and the National Energy Administration issued the "Implementation Opinions on Accelerating the Construction of Charging Infrastructure to Better Support New Energy Vehicles to the Countryside and Rural Revitalization". This year, the relevant policies to promote the development of new energy automobile industry continue to exert their strength. How will China do a good job in this "big article" of new energy vehicles going to the countryside?

  Three years of "going to the countryside" have yielded fruitful results

  In July 2020, China launched new energy vehicles to the countryside. Activities gradually penetrated into third-and fourth-tier cities, and kept close to county and township markets and rural consumers.

  In the past three years, the event has launched nearly 200 rural models, with a cumulative sales of more than 4.1 million vehicles.

  "The horses and chariots have not moved, and the piles are built first." Huang Tao, the operation director of Hainan Charging and Replacing Network Co., Ltd., said that the promotion of new energy vehicles in Hainan has been accelerated by building an information-based, digital and intelligent "one network" operation supervision platform.

  According to Zhong Dong, director of Hainan New Energy Vehicle Promotion Center, in the first four months of this year, Hainan has promoted and applied 29,100 new energy vehicles. New energy vehicles accounted for 43.6% of the new vehicles.

  Relevant ministries and local governments have given strong support, and car companies such as Wuling, BYD and Geely are also making active efforts.

  According to the relevant person in charge of BYD, in recent years, BYD has continued to launch vehicles suitable for the use of cars in counties and townships, and the channels have sunk, so as to facilitate consumers in counties and townships to see cars, test cars, buy cars and repair cars, and promote the steady increase of brand awareness and sales.

  “‘ Going to the countryside ’ The event played an important role in driving the steady growth of sales. " Wang Jun, deputy director of the Industrial Research Department of China Automobile Industry Association, said.

  According to the data of China Automobile Association, the sales volume of new energy vehicles in China soared from 1.206 million in 2019 to 6.887 million in 2022; The number of new energy passenger cars in non-first-and second-tier cities has increased rapidly, from 175,000 in 2019 to 1.714 million in 2022.

  Xu Haidong, deputy chief engineer of China Automobile Association, said that efforts to promote new energy vehicles to the countryside not only guide enterprises to overweight and sink the market, but also promote the comprehensive upgrade of rural residents’ travel modes, and also promote the large-scale development of new energy vehicles to a new stage.

  Large market space and sufficient economic potential.

  At the beginning of the year, the Central Document No.1 proposed to encourage qualified areas to carry out new energy vehicles to the countryside; The "Opinions" were promulgated in May; On June 8, the Ministry of Commerce announced that it would organize the "100-city linkage" and other automobile consumption promotion activities to further enrich the supply of new energy automobile products in rural areas.

  What key signals have been released after the introduction of relevant policies?

  "In recent years, the new energy automobile industry has flourished and has become one of the important engines to promote a new round of economic transformation and upgrading and high-quality development." Xu Haidong said that the layout of charging infrastructure and the promotion of new energy vehicles to the countryside can not only continuously expand the market space of the vast counties and townships, but also improve energy links and boost the development of related industries, with a view to the future.

  At present, many places in the country focus on promoting the construction of charging infrastructure, paving the way for new energy vehicles to go to the countryside.

  "You can charge half the electricity in half an hour, and the monthly charging fee is only 100 yuan." Guo Xinan, a villager from Juwang Village, Haikou Town, Daguan District, Anqing City, Anhui Province, told reporters that his "mileage anxiety" has disappeared since charging piles were installed in neighboring villages in March.

  "Promoting the construction of charging facilities is like opening up the countryside ‘ Seven meridians and eight veins ’ 。” Ma Cuibing, director of the Automobile Industry Department of Anhui Provincial Economic and Information Office, said that this move will promote more choices of car purchases in rural areas and make it more convenient for urban residents to come to the countryside, which will inevitably lead to the rapid development of a series of industries such as tourism, logistics and supporting services for new energy vehicles, promote employment and promote local economic development.

  Experts said that there are more and more consumers who like the natural and rural scenery in go on road trip, and the rural tourism market has broad potential. With the policy guidance and the improvement of residents’ income, the demand and consumption potential of cars in rural areas will become more and more prominent.

  "The penetration rate of new energy vehicles in counties and townships is much lower than that in cities, and there is huge room for improvement." Cui Dongshu, secretary-general of the National Passenger Car Market Information Association, believes that it will be a great market opportunity to promote the consumption growth in county and township markets and realize the popularization of new energy vehicles, which is of great significance for optimizing the consumption structure of residents and continuously implementing the strategy of expanding domestic demand.

  The Study on Electric Vehicle Travel in Rural Areas of China published by committee of 100, China, predicts that by 2030, there will be nearly 160 vehicles with 1,000 people in rural areas of China, and the total number of vehicles will exceed 70 million. The China Automobile Association predicts that if it can meet the needs of rural residents for motorized travel in the future, it will probably incite supermarkets with a scale of 500 billion yuan.

  How to promote better "going to the countryside"?

  Meng Wei, spokesperson of the National Development and Reform Commission, said recently that, on the whole, the new energy vehicle market in rural areas of China is still in its infancy, with relatively low total ownership, insufficient construction of charging infrastructure, insufficient supply of economical and practical vehicles, and insufficient sales and service capabilities, which have restricted the promotion and use of new energy vehicles.

  Xu Haidong believes that at present, new energy vehicles still face multiple challenges in going to the countryside:

  — — The price of new energy vehicles is still higher than that of fuel vehicles. The types of product supply are limited, so how to scientifically and directionally develop suitable models has become a compulsory course for car companies.

  — — At present, the profit rate of new energy vehicles is generally not high. The cost of channel sinking, promotion and promotion is added, which makes it more difficult for car companies to make profits.

  — — Insufficient charging facilities restrict the purchase and use of new energy vehicles in counties and townships. The construction and maintenance cost of charging facilities is high, and it is difficult to make a profit in the short term.

  Zhang Dawei, director of product positioning of SAIC-GM-Wuling, said that the price sensitivity of county and township consumers is high, and the expected price is mainly below 100,000 yuan.

  Industry experts suggest that car companies should develop models that are more suitable for counties and townships, such as appropriately reducing cruising range to save costs. In terms of policy, the state can also consider tilting and guiding, and appropriately increase assistance according to the actual situation.

  Cui Dongshu said that publicity and popular science work in rural areas should be further improved, more efforts should be encouraged and mobilized to promote the renovation and construction of rural basic power facilities, and more difficulties and problems encountered in practice should be solved, such as increasing the capacity of distribution networks.

  "New energy vehicles going to the countryside is a long-term activity and systematic project." Xu Haidong said that in the next step, the government, car companies, power grids and other parties need to form a joint force to continuously explore economic potential and expand market space. With the macroeconomic stabilization, the new energy automobile industry will maintain steady and sustainable development.