Many places subsidize the year-end consumption of new energy vehicles, and more than ten cities sprint to the "capital of new energy vehicles"

21st Century Business Herald reporter Wu Wenxi reported from Wuhan As a large-scale consumption, automobiles play a positive role in stabilizing the consumption market and promoting the high-quality development of the industrial chain. At the Central Economic Work Conference held on December 11-12, it was pointed out that it is necessary to stabilize and expand traditional consumption and boost bulk consumption such as new energy vehicles and electronic products.

Since the beginning of this year, the national level has issued policy documents such as "Several Measures to Promote Automobile Consumption" and "Work Plan for the Steady Growth of the Automobile Industry (2023-2024)", all of which involve the content of boosting the consumption of new energy vehicles, laying the main tone for promoting consumption of new energy vehicles this year.

Approaching the end of 2023, many cities, including Shanghai, Wuhan, Qingdao, Nanchang, Jinan, and Xi'an, have taken multiple measures to promote the consumption of new energy vehicles, covering the introduction of policy documents, the issuance of consumption subsidies, and the increase in the number of new energy number arrangements and other aspects, sprinting the "performance" at the end of the year. From the perspective of the amount of subsidies, it generally ranges from 1,000 yuan to 8,000 yuan, and the amount of subsidies is not low.

According to the data of the Passenger Association, in the first 11 months of this year, the cumulative retail sales of new energy passenger vehicles in mainland China reached 6.809 million, a year-on-year increase of 35.2%. According to the China Association of Automobile Manufacturers, sales of new energy vehicles in mainland China are expected to reach 9.4 million units in 2023.

Under the huge market demand, more cities hope to enter the new energy vehicle track and achieve a breakthrough. Up to now, more than 10 cities across the country, including Shanghai, Chongqing, Shenzhen, Wuhan, Hefei, Xi'an, Changzhou, Guangzhou, Chengdu and Xiangyang, have put forward relevant goals such as building new energy vehicle capitals. Who will be the first city of new energy vehicles?

The consumption of new energy vehicles is accelerating

This year, with the acceleration of the process of vehicle electrification, the new energy vehicle consumer market across the country is booming. According to the data of the China Passenger Car Association, from January to November 2023, the cumulative retail sales of new energy passenger vehicles in mainland China reached 6.809 million units, a year-on-year increase of 35.2%. It accounts for about 35% of Continental's total car sales.

This has a lot to do with the multiple measures taken at the national and local levels to promote automobile consumption. In July this year, the National Development and Reform Commission and other departments issued the "Several Measures to Promote Automobile Consumption", proposing 10 policy measures. In addition to optimizing the purchase of automobiles, measures such as strengthening the construction of supporting facilities for new energy vehicles, reducing the purchase and use costs of new energy vehicles, and promoting the increase in the number of new energy vehicles purchased in the public sector are proposed to encourage the consumption of new energy vehicles.

In September, the Ministry of Industry and Information Technology and other seven departments issued the "Work Plan for the Steady Growth of the Automobile Industry (2023-2024)", which put forward the goal of selling 9 million new energy vehicles this year, a year-on-year increase of 30%, and put forward specific measures to support and encourage the consumption of new energy vehicles, implement preferential tax policies, carry out pilot work in the pilot area of comprehensive electrification of vehicles in the public domain, and organize and carry out activities for new energy vehicles to go to the countryside.

In addition to the promotion of policies at the national level, local governments are also making efforts to promote the consumption of new energy vehicles, and Beijing, Shandong, Guangdong and other places have issued automobile consumption coupons or launched new energy vehicle purchase subsidies during the year.

Approaching the end of the year, the pace of promoting consumption of new energy vehicles around the country has been further accelerated, and the 21st Century Business Herald reporter combed and found that since November, Shanghai, Wuhan, Qingdao, Nanchang, Jinan, Xi'an and other places have introduced policy documents, issued consumption subsidies, and increased the number of new energy vehicle numbers to sprint the year-end sales "performance" of new energy vehicles.

In terms of the introduction of local policies, on November 27, the Sichuan Provincial Development and Reform Commission issued the "Several Measures on the Recovery and Expansion of Consumption", proposing to expand new energy consumption, from supporting the development of new energy vehicles "Tianfu Xing" and "Five Advances" and other promotional activities, the implementation of new energy vehicle vehicle purchase tax reduction and exemption policies, and promoting the implementation of residential electricity prices for public charging and swapping facilities in residential areas.

Recently, the Shanghai Municipal Development and Reform Commission and other five departments formulated the "Implementation Measures for Encouraging the Purchase and Use of New Energy Vehicles in Shanghai", which revised the previous round of measures and continued to support the purchase and use of new energy vehicles by issuing free special license plates. For individual users who already own fuel vehicles registered in the city, individuals are encouraged to replace fuel vehicles with new energy vehicles.

In terms of the issuance of consumption subsidies, Qingdao will organize a consumption subsidy activity for new energy vehicles in Qingdao with the theme of "Warm Winter Consumption Season and Enjoy a New Life" in 2023. From December 20 to December 31, 2023, consumers who purchase new energy passenger vehicles (excluding second-hand cars) at participating automobile sales enterprises in Qingdao and complete motor vehicle registration can receive a subsidy of up to 6,000 yuan. Specifically, the subsidy for each vehicle with a purchase amount of 100,000 yuan (exclusive) is 1,000 yuan, the subsidy is 3,000 yuan per vehicle from 100,000 yuan (inclusive) to 200,000 yuan (exclusive), and the subsidy is 6,000 yuan for each vehicle above 200,000 yuan (inclusive).

On December 12, the 2023 Wuhan "Year-end Winter Sui, New Year's Eve and Spring Festival" series of automobile consumption promotion activities were launched, and the detailed rules for receiving 10 million yuan of car purchase consumption coupons were released at the launching ceremony.

In addition, from the end of November, Changsha's automobile consumption promotion activities in the fourth quarter of 2023 were officially launched, and the government invested 20 million yuan to subsidize consumers to buy cars. Up to now, Yuhua District, Furong District, Kaifu District, etc. in Changsha City have issued detailed rules for subsidy applications, with a maximum subsidy of 5,000 yuan. Suzhou launched a subsidy policy of 100 million yuan for new energy vehicles, which starts on November 25 and ends on March 31, 2024, with a subsidy of up to 6,000 yuan according to the purchase price. A new round of new energy vehicle consumption subsidies in Jinan was launched on December 8, with a maximum subsidy amount of 5,000 yuan.

In addition to the subsidy policy, there are also many other policies to promote the consumption of new energy vehicles. On December 5, the Traffic Police Detachment of the Xi'an Municipal Public Security Bureau issued eight convenient measures to promote the development of new energy vehicles, including exempting new energy vehicle registration fees, delegating new energy vehicle business handling authority, expanding new energy vehicle registration service outlets, and increasing the number of new energy vehicle number arrangement.

Wei Fulei, director of the China (Shenzhen) Comprehensive Development Research Institute of Finance, Taxation, Trade and Industry Development Research Center, told the 21st Century Business Herald reporter that China is in a stage of accelerating electrification, and the overall scale of new energy vehicle consumption is also growing at an accelerated pace. At the same time, all localities have increased their efforts to promote large-scale consumption such as new energy vehicles, which can provide strong support for the role of consumption in driving the economy and expanding domestic demand.

Competition in the urban new energy vehicle industry has intensified

With the acceleration of new energy consumption, more cities are aware of the development potential of the new energy vehicle industry and hope to be among the "tracks". Judging from the production data of new energy vehicles in the first three quarters released by some provinces and cities, the industrial development of many regions is accelerating.

In the first three quarters of Shanghai, the output of new energy vehicles was 915,000 units, combined with the data released in the third quarter report of the Shanghai economy, the output of new energy vehicles increased by 42.7% year-on-year, and in the same period, the output of new energy vehicles in Shaanxi, Jiangsu, Anhui and Hunan was 723,000, 705,000, 606,000 and 600,000 respectively, and the growth rate of these provinces was also considerable, with a year-on-year increase of 42.1%, 80.2%, 76.6% and 92% respectively.

The competition between cities is more intense, combing found that at present, there are more than 10 cities in the country, such as Shanghai, Chongqing, Shenzhen, Wuhan, Hefei, Xi'an, Changzhou, Guangzhou, Chengdu, Xiangyang, etc., to build a new energy vehicle capital and other related goals.

For example, cities such as Shenzhen, Shanghai, Guangzhou, Chongqing, Xi'an, and Hefei have all targeted more than one million NEVs/ICVs in 2025. In 2020, Hefei proposed to thoroughly implement the national strategy of developing new energy vehicles and accelerate the construction of a national new energy vehicle capital; Xi'an proposed that by 2025, it will become a first-class new energy automobile industry base in the country and become a new energy vehicle capital; Shenzhen issued a relevant action plan in August this year, proposing to accelerate the construction of a "new generation of world-class automobile city".

Wei Fuley said that the cities competing for the new energy vehicle industry are generally divided into two types. One is that there is no city with automobile industry genes, such as Shenzhen, with its own "three electrics" basic advantages, counterattack to become one of the most complete cities in the global new energy vehicle industry chain, this kind of city is characterized by no burden of traditional fuel vehicle transformation, which is also an advantage. Another kind of city is the city with the traditional automobile industry base in the past, such as Shanghai, Chongqing, Guangzhou, Xi'an, etc., these cities have accumulated a complete supporting system of parts and components in the development process of traditional fuel vehicles, and also have their advantages in the development of new energy vehicles.

At present, the competition between Shanghai, Shenzhen and Xi'an is particularly fierce among the three cities of new energy vehicle production. In the past, Shanghai has long been in the first position in the output of new energy vehicles, but last year, the output of new energy vehicles in Xi'an exceeded one million, surpassing Shanghai for the first time and becoming the first. But judging from the situation this year, Shenzhen's lead is obvious.

In the first three quarters of this year, Shenzhen's new energy vehicle output was 1.235 million, an increase of 125.8%, surpassing Shanghai's level of 915,000. Xi'an did not release data for the same period, but the production of new energy vehicles in the first three quarters of Shaanxi Province was 705,000 units.

Wei Fulei believes that the sharp rise in the production of new energy vehicles in Shenzhen is mainly due to the contribution of BYD. On the one hand, the Shenzhen-Shantou BYD Automobile Industrial Park has been put into operation, planning to provide a production capacity of 600,000 vehicles, which has increased the overall production capacity of Shenzhen. On the other hand, BYD's sales in Southeast Asia this year are considerable, and the main export models are produced in Shenzhen.

At present, the competition between cities in the new energy vehicle industry is actually deeply bound to the leading car companies. Cui Dongshu, secretary general of the National Passenger Car Market Information Association, said in an interview with the 21st Century Business Herald reporter that the development of local competition for new energy vehicles depends on the development of vehicle enterprises, and the development of vehicle enterprises depends on the development of product cycles.

"From the perspective of the development pattern of the city's new energy vehicle industry, relying on BYD, Tesla and other head brands, Shanghai, Shenzhen and Xi'an can lock in the position of the head of industrial development in the future. Wefley said.

In fact, under the market demand is not saturated, more cities began to make efforts, such as Changzhou, Hefei, Wuhan, etc., most of these cities can be classified as typical cases of the transformation of traditional automobile industry cities, among them, Wuhan as early as 2009 took the lead in shouting the slogan of becoming the capital of new energy vehicles.

Cui Dongshu believes that in the future, the competition for new energy vehicle production capacity may be further intensified, and the characteristics of major car companies with a certain production capacity in multiple regions will become increasingly obvious. However, on the whole, the Yangtze River Delta and the Pearl River Delta still have great advantages.

In Wei Fuley's view, on the new energy vehicle track, late-developing cities such as Changzhou and Hefei will have the opportunity to stand out in the future by accelerating the transformation of the traditional automobile industry and providing it with the foundation of the industrial chain and supply chain.

"At present, the mainland auto market is still in the acceleration period of electrification, and the overall penetration rate is still only 40%, especially in the second and third tier cities and rural markets, there is still a lot of potential space. The future depends on who can seize the market demand and turn it into productivity, who will be able to break through in the next stage of competition. Wefley said.

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