How China's New Energy Vehicles "Speed Up All the Way" - Perspective on China's High Quality Development Highlights - Second Industry | China | Highlights

Xinhua News Agency, Beijing, August 19th - Question: How China's New Energy Vehicles "Run Fast All the Way" - Perspective on China's High Quality Development Highlights II

Xinhua News Agency reporters Gao Kang, Zhang Xinxin, and Wu Huijun

In September 2020, the cumulative production of new energy vehicles in China reached 5 million units. In February 2022, it exceeded 10 million units, and reached a new level of 20 million units in just 1 year and 5 months.

The Chinese automotive industry is steadily advancing towards high-quality development, ranking first in the global production and sales of new energy vehicles for eight consecutive years. New energy vehicles provide a new "track" for the transformation, upgrading, and high-quality development of China's automotive industry. Why does China's new energy vehicles lead the world? What is the "trick" for rapid development?

Industry Press "Acceleration Key"

BYD Group announced on August 9th that its 5-millionth new energy vehicle has been taken offline, becoming the world's first car company to achieve this milestone.

From 0 to 1 million vehicles, used for 13 years; From 1 million to 3 million vehicles, it took 1 and a half years; From 3 million to 5 million vehicles, in just 9 months.

Sleeping on the firewood and tasting the gall, accumulating thick and spreading thin. BYD's development is full of resilience and momentum, becoming a vivid practice of the rapid development of China's new energy vehicle industry.

According to data from the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in China reached 3.788 million and 3.747 million respectively in the first half of the year, with a year-on-year increase of 42.4% and 44.1%.

Along with strong production and sales, the increase in exports means an increase in the international recognition of Chinese brands. In the first half of the year, China exported 2.14 million vehicles, a year-on-year increase of 75.7%, including 534000 new energy vehicles, a year-on-year increase of 160%; China's automobile exports have surpassed Japan's and jumped to become the world's largest.

New energy vehicles also performed well at the exhibition. Recently, at the 20th Changchun International Automobile Expo, many visitors in the Guangzhou Automobile Aian exhibition area inquired about car purchases. Salesperson Zhao Haiquan excitedly said, "I ordered over 50 cars in a day."

Since the beginning of this year, there has been a significant increase in the frequency of multinational car companies forming groups to visit and exchange ideas at major automobile exhibitions and local new energy vehicle brand booths.

Zhu Yifang, Director of the Industrial Policy Research Department of the China Automotive Strategy and Policy Research Center at the China Automotive Center, stated that in recent years, policies have accelerated the development of the industry, and the scale and quality advantages of China's new energy vehicle industry have gradually emerged.

Industry experts believe that the production of new energy vehicles in China has exceeded 20 million units, marking a new stage of high-quality development for China's new energy vehicles on the basis of industrialization and marketization.

Perspective on the "Password" of High Quality Development

In 2008, China launched its first development plan for the new energy vehicle industry, which has been in operation for over a decade. The new energy vehicle industry in China has embarked on a path of high-quality development.

What does the rise rely on?

——Strong policy support. "The rapid development of the industry has played a huge role in policy guidance," said Fu Bingfeng, Executive Vice President of the China Association of Automobile Manufacturers.

Anhui Province, which has complete vehicle enterprises such as Chery, NIO, and JAC, is one of the provinces in China where the new energy vehicle industry started earlier. Over the years, relevant local policies have been continuously introduced to promote industrial development. In the first half of the year, the production of new energy vehicles in Anhui increased by 87.8% year-on-year.

According to statistics, in recent years, various departments have launched more than 70 support measures, and various regions have introduced supporting policies based on their own actual situations. From implementing industrial technology innovation projects to establishing national manufacturing innovation centers such as power batteries, a series of measures have made the direction of industrial development clearer and the pace more firm.

——Transforming market advantages into industrial advantages. With China actively promoting the popularization and application of new energy vehicles, accelerating the construction of charging infrastructure, market vitality and consumption potential continue to be unleashed.

In recent years, from the financial subsidy policy for new energy vehicles to the vigorous promotion of new energy vehicles going to rural areas, the support from the consumer side has fully mobilized the enthusiasm for industrial transformation, and the rapid expansion of the market has driven innovation in the industrial chain.

Wu Kai, Chief Scientist of Ningde Times New Energy Technology Co., Ltd., said that the rapidly growing market, from material systems to battery structures, has driven the power battery industry to the forefront.

——Adhere to independent innovation. Innovation driven lane changing overtaking, after years of cultivation, China has a relatively complete industrial system and technological advantages in the field of new energy vehicles.

"No matter how difficult it is, we cannot save on research and development." Yin Tongyue, Chairman of Chery Automobile Co., Ltd., believes that technological innovation is the core competitiveness, and Chery invests about 7% of its annual sales revenue in research and development.

In recent years, Chinese car companies have actively laid out diversified technological routes such as pure electric, hybrid, and hydrogen fuel, promoting accelerated industry transformation.

——The industrial chain continues to improve. From core components such as batteries, motors, and electronic controls to vehicle manufacturing and sales, China has created a relatively complete new energy vehicle industry chain system.

In the Yangtze River Delta, with the coordinated development of industrial clusters, a new energy vehicle factory can provide the necessary supporting components within a 4-hour drive:

Shanghai provides chips and software; Provide power batteries to Changzhou, Jiangsu, about 200 kilometers west; We provide integrated die-casting machines for car bodies in Ningbo, Zhejiang, more than 200 kilometers south.

"In the past, competition relied on specialized technology. Today, it is even more important to rely on 'chain'," said Xu Jun, Senior Vice President of Zero Run Automobile. Relying on integrated innovation to consolidate and expand the advantages of the industrial chain is crucial for promoting high-quality development of the industry.

Consolidate advantages and seize the opportunity to move forward

China's new energy vehicles are reshaping the competitive landscape of the global automotive industry and continuously attracting top global car companies to accelerate their layout in the Chinese market.

Toyota and GAC jointly develop new energy vehicle models in Japan; Volkswagen of Germany has established a global research and development headquarters for new energy vehicles in Anhui. Recently, Volkswagen Group acquired 4.99% of Xiaopeng Motors for $700 million and will cooperate in the development of electric vehicle products.

Industry insiders believe that in the era of gasoline vehicles, cooperation between multinational car companies and Chinese car companies often involves one-way technology output, with China exchanging technology for the market. And this collaboration between Volkswagen and Xiaopeng to acquire technology and expand the market has become Volkswagen's main goal.

"From one-way output to two-way cooperation, China's automotive industry will inject more force into the transformation of the world's automotive industry." Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Conference, said that in 2022, China's new energy passenger cars accounted for 63% of the world market share, and its industrial advantages have become increasingly obvious.

"To consolidate development advantages, it is even more necessary to make up for shortcomings." Zhu Yifang said that currently, compared to multinational car companies, local brands still have certain gaps in brand value, technological research and development, and global industrial layout.

Fu Bingfeng stated that continuous efforts are needed to make up for the shortcomings in the development of industries such as chips, basic software, and key materials. The problems of overcapacity and uneven development brought about by industrial transformation still need to be continuously addressed in high-quality development.

"Strengthening technological innovation and enhancing digital and intelligent manufacturing capabilities," said Zhu Yifang. Consolidating advantages, achieving sustainable development, and enhancing brand awareness will become the focus of promoting high-quality industrial development in the next step.

"Export brand ecology and compete in the entire value chain." Li Xueyong, General Manager of Jietu Automobile, believes that car companies not only need to have technological and industrial chain advantages, but also need to make long-term layouts in the market, especially overseas markets.

Currently, in the wave of global electrification and intelligent transformation, China's new energy vehicles are rapidly moving towards the center of the world stage, and local brands are facing historical opportunities, which also bring new development opportunities to the global automotive industry.