Problems Faced in the Development of New Energy Vehicles in China

Data show that in 2013 the global sales of electric vehicles were 226,000, an increase of 74% year-on-year, of which US sales were 144,000, an increase of 173% year-on-year, while China's sales were only 17600, an increase of 38% year-on-year, lower than the global average growth rate. In view of this situation, analyst Wang Jiahong of CCID Consulting's Automotive Industry Research Center believes that the main reasons for the lag in the development of new energy vehicles in China are three areas: serious local protection, insufficient consumption habits, and high purchase cost.

The promotion of new energy vehicles to protect local areas is serious. It is reported that Beijing and Shanghai have released the “New Energy Vehicles for Demonstration and Application in Beijing” on the basis of the National Catalogue of Recommended Models for Energy Conservation and New Energy Vehicles Demonstration, Extension and Application Engineering. Enterprises and Product Catalogues and Catalogue of New Energy Vehicles in Shanghai Demonstration and Application, namely local “small catalogs”.

Wang Jiahong told reporters: “In the near future, the state’s high-level attitude is clear and requires the local protection to be resolutely eliminated. Therefore, BYD Qin will enter the Beijing market in the future. However, there is no penalty mechanism for the above phenomenon. Therefore, in the short term, especially in the public sector, new energy sources The hidden threshold of the car will still exist."

Insufficient consumption habits and lack of understanding of electric vehicles Although pure electric vehicles have the advantages of lower vehicle cost and energy conservation and environmental protection than traditional fuel vehicles, the cumulative number of new energy vehicles has been less than 50,000 vehicles by the end of 2013. Sales of 17,600 vehicles, an increase of 38%, lower than the average global growth rate.

Wang Jiahong said that CCID Consulting’s Automotive Industry Research Center has learned through in-depth market knowledge that currently pure electric vehicles are mainly used in public areas such as public transportation and leasing, and private-sector consumption accounts for a small proportion, and consumers lack understanding of electric vehicles. Reluctant to try new things easily, so it is necessary to use marketing model innovation to allow consumers to experience more pure electric vehicles and form a demonstration effect of consumption.

The cost of a one-time purchase of a pure electric vehicle is high, and it is difficult to realize a competitive advantage. It is understood that the current pure electric vehicle already has state subsidies and local subsidies, but the price of new energy vehicles is still higher after the removal of subsidies, such as BYD E6 can enjoy 114,000 Yuan subsidy, after eliminating the subsidy price of 14-25 million yuan, compared to the current domestic self-owned brand fuel car prices, lack of competitive advantage.

"How to reduce the cost of one-time purchase of pure electric vehicles, fully embodies the advantages of low cost of pure electric vehicles, is one of the key points for the rapid promotion of pure electric vehicles." Wang Jiahong said.

In view of the above three issues, Wang Jiahong believes that through the marketing model innovation, the slow market promotion of new energy vehicles will be resolved, which will also become a key factor in the development of domestic new energy vehicles in the future. He also stressed that solving the fundamental problem of domestic new energy vehicles is still continuing technological breakthroughs, and companies need to combine the marketing model innovation with technological upgrading.