New Energy Vehicle Subsidies To The Leading Enterprises Focus On The Survival Of The Fittest Industry Accelerated

- Dec 07, 2017 -

"Publicity on Preliminary Examination and Approval of Funds for Promoting and Applying New Energy Vehicles for 2016 (Second Batch)" was released a few days ago and involved a total of 491 models of 70 enterprises with a subsidy fund of 16.764 billion yuan. Insiders said that with the grants paid, corporate pressure has been released. Among them, the proportion of bus subsidies issued is high, Yutong Bus, Zhongtong Bus, Ankai Bus and other leading benefit.


Concentration to further enhance

In this batch of audit list, bus companies accounted for a higher proportion. Among them, Yutong Bus, Zhongtong Bus, Ankai Bus respectively 16,169, 6445, 2282 vehicles passed the audit, subsidies were 58.53 billion yuan, 2.295 billion yuan, 8.48 billion yuan. The three companies together accounted for 53.66% of the total subsidized funds.


Insiders said that with the tightening of policies, the leading share of passenger vehicles subsidies received much higher than the small and medium enterprises, low-end competitors under greater operating pressure, leading enterprises increased market share, industry concentration will be further enhanced.


On December 29, 2016, the Ministry of Industry and Information Technology issued a "Notice on Adjusting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles", which requires non-private users to purchase more than 30,000 kilometers of new energy vehicles in order to get subsidies. In 2017 January 1 implementation.


As the bus is mostly used in the field of public transport with guaranteed mileage, the target requirement is relatively easy to achieve, while the electric logistics car is more difficult to meet the standard, so the new energy bus company gets more subsidy share.


Industry survival of the fittest accelerated

Publicity shows that the declaration of a total of 57,816 enterprises to declare promotion, corporate application funds 16.84 billion yuan; expert group approved the promotion of 57,494 vehicles, grant funds 16.76 billion yuan. Among them, 322 vehicles did not pass the expert group approval, involving Fujian Longma, Hebei Yu Jie, Zhengzhou Yutong, CSR Times, China FAW Group, Land Ark, Jiangxi Beneteau, Zhongtong Bus, BYD, Chengdu ace commercial vehicles and other vehicles Enterprise. Mainly in the declaration of information and notice parameters do not match, repeated declaration of subsidies, not in the recommended directory.


As of November 28, the Ministry of Industry and Information Technology announced the liquidation of 3 subsidized funds (including supplementary applications) for new energy vehicles, and 213,800 vehicles passed the approved promotion and should subsidize 25.77 billion yuan of funds.


With the implementation of the double integral policy, many enterprises have increased investments in the field of new energy vehicles. The industry believes that in the long run, double-point policy will accelerate the survival of the fittest in the industry is accelerated, is conducive to the long-term healthy development of the industry.


CITIC Securities pointed out that new energy vehicles sold about 690,000 vehicles in 2017. As the proportion of passenger cars continues to increase, the market for pure electric vehicles will gradually increase. By 2020, the sales volume of new energy vehicles will reach 2.01 million.


Source: China Battery Network

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