Recently, the new energy vehicle industry has developed rapidly. With the clear announcement of the reduction of subsidies for new energy vehicles, the policy direction has always been closely watched by the industry. According to the data released by the China Association of Automobile Manufacturers recently, it is expected that the sales growth of new energy vehicles in China will reach about 40% in 2018.

A revolution is underway in the phased adjustment of subsidies to support new energy vehicles

On the one hand, there is the impressive performance report of new energy vehicles. On the other hand, the deadline for the subsidy reduction in two years is approaching. Currently, due to the delay in the implementation of the new subsidy policy for new energy vehicles, it has added uncertainties to the development of the new energy vehicle market this year. However, some public opinions point out that the driving force of the new energy vehicle industry comes from policy incentives such as financial subsidies, exemption from purchase tax, and purchase restrictions on traditional vehicles. Therefore, in 2018, policy stimulus will shift to market-driven.

The subsidy reduction policy for new energy vehicles in 2018 is being implemented. Strengthen the regulation and management of the industry from aspects such as operation, financial subsidies, enterprise access, and joint ventures and cooperation, and guide the orderly and healthy development of China's new energy vehicle industry and market. Specifically, a policy system will be established to support the consumption and use of new energy vehicles.

A revolution is underway in the phased adjustment of subsidies to support new energy vehicles

Recently, a person close to the relevant source confirmed that the subsidies for new energy vehicles will be cut again in 2018 and will be cancelled by 2020. Meanwhile, the new access policies have further tightened the access requirements for new energy vehicle enterprises and products. For enterprises and products that meet the access requirements, the access process will be further simplified.

While firmly withdrawing the fiscal subsidies for electric vehicles in 2020, the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information Technology, and the Ministry of Science and Technology have clearly extended the preferential measures for vehicle purchase tax. According to media reports, Miao Wei said recently that if the one-time adjustment is postponed until the end of 2020, it would be better to release the adjustment pressure in stages so that everyone can smoothly get through the decline period. And continue to follow the development strategy of new energy vehicles, taking the overall planning and innovative development of new energy vehicles as an important measure to achieve green development in transportation.

This means that the new subsidy policy will not be implemented immediately after its announcement, but will leave a transitional period for the market. During this period, enterprises can still enjoy subsidies according to the subsidy policy of 2017. However, in terms of technology, not only has the classification assessment of the vehicle's unit load capacity consumption been added, but also the requirements for the energy density and fuel-saving level of the power battery system have been clearly raised. Therefore, subsequent growth will come more from the improvement of internal concentration.

For China's new energy vehicle market, the industry generally believes that the period from now until 2020 is a crucial time for development. With the reduction of fiscal subsidies and the gradual withdrawal of monetary support policies, it is necessary to study in advance and make timely plans for subsequent replacement policies such as convenient passage. The intensification of competition will promote the more mature development of technology, and the research and development costs will gradually decrease accordingly. This will encourage enterprises to focus on technological improvement and price reduction, leading to a healthy growth of China's new energy vehicles. At that time, the market will drive this automotive revolution and energy revolution with powerful force, achieving green travel and green living.