The new subsidy policy for new energy vehicles has appropriately raised the threshold of technical indicators, focused on supporting high-quality products with excellent energy consumption and high technical level, and encouraged enterprises to pay attention to safety and consistency.
At the same time, the implementation of the New Deal has also accelerated the "reshuffle" of the industry. Low-end enterprises that rely on subsidies for survival are doomed to be eliminated. Only by accelerating innovation drive and improving product strength can new energy vehicle companies hedge the impact of subsidies.
The much-anticipated financial subsidy policy for new energy vehicles has finally been introduced. On the 26th, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology and the Development and Reform Commission jointly issued the Notice on Further Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles, which clarified the subsidy standards and liquidation methods for new energy vehicles in 2019. Compared with the previous subsidy policy, what specific changes will the New Deal have, what impact will it bring to the industry, and how should enterprises respond?
Pure electric vehicle compensation is reduced by nearly half
In 2019, the New Deal proposed that the driving range of pure electric passenger cars should not be less than 250 kilometers, that of plug-in hybrid passenger cars (including extended range) should not be less than 50 kilometers, and that the subsidized driving range should only be divided into "two grades" of 250 to 400 kilometers and more than 400 kilometers, with subsidy amounts of 18,000 yuan and 25,000 yuan respectively, and that of plug-in hybrid passenger cars (including extended range) should be 10,000 yuan.
Last year, except for vehicles below 150km, subsidies for pure electric vehicles were divided into "four gears" with cruising range of 150-200km, 200-250km, 250-300km and 300-400km and above, with subsidies of 15,000 yuan, 24,000 yuan, 34,000 yuan and 45,000 yuan respectively. Plug-in hybrid passenger cars (including increase)
"Compared with the previous year, the subsidy for pure electric passenger cars has been reduced by nearly half." Cui Dongshu, Secretary-General of the National Passenger Car Association, said that unlike previous years, when the energy density threshold of the power battery system of new energy vehicles was greatly raised, this policy appropriately raised the threshold of technical indicators according to the principles of advanced technology, reliable quality and guaranteed safety, and kept the upper limit of technical indicators basically unchanged, focusing on supporting high-quality products with excellent energy consumption and high technical level, while encouraging enterprises to pay attention to safety and consistency.
Pre-allocation of subsidy funds in time
In view of the problem of untimely payment of subsidy funds, the New Deal proposes to improve the liquidation system and improve the efficiency of funds. It is required that from 2019, some funds will be pre-allocated after the vehicles with operating mileage requirements are sold and licensed. After meeting the mileage requirements, they can apply for liquidation according to procedures. After the release of the policy, vehicles with operating mileage requirements will not be subsidized if they run less than 20,000 kilometers within 2 years from the date of registration, and the pre-allocated funds will be deducted at the time of liquidation.
It is understood that subsidies for new energy vehicles are divided into central financial subsidies and local financial subsidies. After enterprises submit application documents and materials, the central financial subsidies need to be approved and tested by the National Development and Reform Commission, the Finance Committee, the Ministry of Industry and Information Technology and the Ministry of Finance; Local financial subsidies involve many cities, and the declaration process is also different. Some enterprises report that compared with central financial subsidies, local financial subsidies have many application links and long processes, and the progress of distribution is more difficult to determine.
"If there is no cash flow and financing is difficult, it will affect the bank’s guarantee and mortgage. The superposition of layers will increase the investment cost of car companies and bring some pressure to the operation of upstream batteries and other enterprises." Cui Dongshu said that new energy vehicle enterprises themselves need cash flow, and this subsidy policy clarifies the rules for timely payment of subsidy funds, so that enterprises can research and develop and promote the market with peace of mind, thus achieving sustainable development.
Local financial withdrawal subsidy
The new policy also clearly states that local governments should improve their policies. After the transition period, they will no longer give purchase subsidies to new energy vehicles (except new energy buses and fuel cell vehicles), and instead use them to support the "short board" construction of charging (hydrogenation) infrastructure and supporting operational services. If the local government continues to grant purchase subsidies, the central government will deduct the relevant financial subsidies accordingly.
"This means that local finance will withdraw its subsidies to vehicle manufacturers, and the policy based on financial subsidies will shift more to the non-financial system, focusing on optimizing the development environment of new energy vehicles, including road rights, charging facilities, power battery recycling, commercial insurance, used cars and so on. At the same time, it also helps to reduce local protectionism. " Cui Dongshu said that China’s policy of encouraging the development of new energy vehicles is a systematic policy, aiming at realizing the joint support system of national and local new energy vehicle policies, ensuring that after the subsidy is completely withdrawn in 2021, new energy vehicle products still have certain advantages over the policy environment of traditional fuel vehicles, and promoting the establishment of a market-oriented independent new energy vehicle selection system.
In addition, the transitional policy also allows car companies to have a reasonable layout and time period for calibrating new products.
The influence of the New Deal has different reactions.
"The intensity of this slope retreat is expected, and the impact on enterprises is not too great." Zhao Changjiang, general manager of BYD Auto Sales Co., Ltd. said that only by accelerating innovation drive and enhancing product strength can enterprises better hedge the impact of subsidy retreat.
However, many people in the industry said that with the increase of subsidies, many uncertainties have been added to the original high-speed development of new energy vehicles. Chen Hong, chairman of SAIC, bluntly said that without subsidies, China’s new energy vehicle market would decline significantly.
"After the subsidy for new energy vehicles has declined, car companies can ‘ Complement ’ 。” Jia Xinguang, executive director of china automobile dealers association, pointed out that the power battery occupies a very important position in the manufacturing cost of new energy vehicles. If the battery cost can be reduced through technological innovation, the impact of subsidy retreat on the market will be weakened.
"It is not necessarily a good thing for a powerful enterprise. Subsidies should be seen dialectically." Gu Huinan, general manager of GAC New Energy, told reporters that with the gradual withdrawal of financial subsidies, the reshuffle of new energy vehicles is coming, and those low-end enterprises that rely on subsidies for survival are doomed to be eliminated. What can stand out must be the outstanding enterprises that actively face the market and can provide products with market competitiveness.
