According to the latest survey of the "Investment Reference" of the "Financial Times" research and service department of the UK, although local brands still dominate the Chinese electric vehicle market, this may not be the case in the future.
The 'gold rush' triggered by the Chinese government's encouragement to develop the electric car industry may lead to a major reshuffle of the industry. The brands currently leading in the electric vehicle market may be lagging behind in the market.
According to the latest survey of the “Investment Reference” of the “Financial Times” research service of the UK, of the leading companies in the industry, only Shenzhen’s BYD ranks among the most favored electric car brands. Although many foreign automakers are still developing Technology, and most have not yet begun to sell in China, respondents still have an overwhelming preference for them (our survey does not include highly-conceptual, technologically-supported startups such as Nio, Byton, and Xpeng).
Before the Chinese government will implement an electric vehicle quota system for automakers, foreign automakers have announced that they will increase investment in electric vehicles in China, the world’s largest auto market. From next year, automakers will produce more than a certain amount of production capacity. Traders will be required to produce a certain amount of electric vehicles, starting with a quota of 10%. Foreign companies are working with local electric vehicle manufacturers in China to achieve this quota. At the same time, electric vehicle production will be based on existing joint ventures. Long-term investment plan.
As more factories are put into production and the government re-adjusts subsidies to encourage higher-quality car production, we believe that current market leaders will not be able to stay ahead.
Government propaganda promotes sales
China's electric vehicles are a small and rapidly growing market. Last year, sales of pure battery-powered vehicles or plug-in hybrid electric vehicles in China increased by 69.2% to 556,000 vehicles, accounting for about half of global sales.
In order to control pollution and develop the green industry, the Chinese government has been subsidizing the domestic electric car industry through the central and local governments since 2013.
In our survey, more than 90% of people who need to buy a car in the next 12 months said they would consider electing an electric car, and 55% said that they would choose to do so. The most important thing is to consider environmental protection. We suspect The real motive behind this is actually the government's subsidies. Real demand may appear in 2020, when consumer subsidies will be completely eliminated.
In the third-tier cities, 9.4% of the respondents believe that subsidies are the second most important factor in the purchase of new energy vehicles. For first-tier urban residents, the difficulty in obtaining license plates (10.4%) is an important factor.
