New energy vehicle subsidy extended for 2 years: policy dividend boosts industrial upgrading

■ Observer

The new energy vehicle industry should seize these two-year policy dividend periods to truly enhance the overall level and strength.

On March 31, Premier Li Keqiang hosted an executive meeting of the State Council and proposed a series of measures to promote automobile consumption. Among them, "the extension of new energy vehicle purchase subsidies and purchase tax exemption policies for two years" has attracted much attention. Previous policy was to exempt new energy vehicles from vehicle purchase tax from January 1, 2018 to December 31, 2020. This two-year extension means that this policy will be extended to the end of 2022.

To the market, this is of course a positive signal, injecting a booster into the downturn of the Chinese new energy vehicle market.

Specifically, the significance of the policy extension is directly related to the impact of the epidemic in the short term. Data show that in February 2020, the retail sales of narrow passenger cars nationwide was 252,000, a year-on-year decrease of 78.5% and a month-on-month decrease of 85.4%. The sales data returned to 14 years ago. New energy vehicles are also difficult to stand alone. The delay of some auto factories and parts supporting companies to resume work due to the epidemic situation has also increased the pressure on the entire industrial chain. Therefore, this move can alleviate the impact of the epidemic to a certain extent, and focus on stabilizing market expectations.

However, the policy is extended for two years, and it still affects long-term value. Because with the subsidy policy's decline, the production and sales of new energy vehicles will decline in 2019. Even if there is no "black swan" incident, there will be a high probability that the policy will respond. However, the main significance of this policy adjustment is also its impact on the entire industry.

On the one hand, after years of policy subsidies, some companies have also developed subsidy dependence. After the extension of the subsidy policy, it is not ruled out that some auto companies that are already on the verge of "delisting" can renew their lives; on the other hand, those companies that truly have core technologies and are willing to invest in research and development can obtain more adequate growth. space.

It must be seen that there is still much room for improvement in the cultivation of new energy vehicles' social consumption habits and the improvement of related infrastructure. The extension of the subsidy can also be said to be a pragmatic response. The maximum elimination of speculative space that can be derived from the subsidy policy, so that the value of the subsidy can be reflected to the greatest extent, also depends on the continuous optimization of the policy itself.

In fact, the subsidy policy for new energy vehicles has been adjusted. From the initial focus on fuel-saving capabilities, to range mileage, to segmented technical requirements based on range mileage, the subsidy threshold has continued to increase. In order to reduce the space for "deception", 141 models were removed from the subsidy list last year. These have all enhanced the “practicability” of subsidies. With the development of the industry and the changes in stages, there is a high probability that the subsidy standard will be adjusted in the future. This once again warns companies that they can't rely too much on subsidized blood transfusions, relying on technology and their own efforts is the way to stand.

While the subsidy policy has been extended, some cities have recently increased their car purchase quotas and relaxed restrictions on new energy vehicle license plates. This is actually a combination of policies punched at both ends of production and marketing. Automobiles are bulk consumers with a long industrial chain and a stable automobile industry, which can have a positive driving effect on consumption and the economy.

As a whole, China's new energy automobile industry and the transformation of the entire automobile industry should cherish and seize the two-year policy bonus period, cultivate and enhance their own hematopoietic capabilities, and truly enhance the overall level and strength of the industry.

□ Ran Ran (media person)