New energy vehicles and subsidies for the

The global green energy revolution is already in progress. All countries in the world are trying their best to promote the era of green energy, which is characterized by high efficiency, cleanliness, low carbonization and intelligence. In the face of this major global opportunity, China obviously needs to act early to seize the initiative. However, similar to people's expectations, the report of the government work of the two associations once again favored the new energy vehicle, one of the key representatives of the green economy: the preferential policy for vehicle purchase tax will be extended for another three years.

New energy vehicles are ranked in the seven strategic emerging industries and have long received important support in terms of funds, taxes and fees. This is the future of sustainable human development. All countries in the world are energetically advancing their development. Take Japan as an example. This is the first country in the world to explicitly promote the application of fuel cell vehicles. According to the Ministry of Economy, Trade and Industry (METI) plan, the country will have about 40,000 fuel cell vehicles in 2020, and it will soar to 2025. 250,000 units, which reached 800,000 units in 2030; while European countries have been developing ambitious electric vehicle development plans since 2010, the German government has even begun discussions in 2016 to sound all fuels by 2030. The death knell of the car.

As far as the degree of emphasis is concerned, compared with Western countries, China is nowhere near. "The New York Times" once analyzed China's support for the electric vehicle industry and the scale of the industry and stated that the global auto manufacturing executives have gradually reached a consensus that China will lead the world in the fast-growing field of new energy vehicles.

This is because China has its own particularities: First, as a latecomer country, we are still lagging behind in terms of automotive technology and brand, and the gap between the traditional fuel-fueled automobile field and Germany, the United States, Japan and other countries is difficult to contend with in the short term; As the world’s second-largest economy, it is impossible for us to be subject to long-term restraints in a key area of national economy, and we are willing to lag behind; in addition, in the field of electric vehicles, there is a gap between China and the world, but it is not big, it is out of the original circle, another The best opportunity to establish a new starting line; Finally, low-carbon, environmental protection, and sustainability have become the world's economic development prospects. As a signatory of the Paris Agreement, we are happy to shoulder the responsibility of leading global green development.

China’s drive for the development of new energy vehicles will surely succeed, not only because of the firm support and promotion of the country, but also because of the world’s largest market size and the pursuit of a higher quality, environmentally friendly life after the people’s economic income has been raised—this is precisely China. The car is backed by a new energy technology.

However, the trend of a new industry at the market level, just as pointed out in the report of the Party’s Nineteenth Congress, is that “the market plays a decisive role in the allocation of resources” and cannot lie in the "greenhouse" of subsidies forever.

With the end of the policy subsidy in 2020 and the increasing attention and localization of joint venture brand cars to China, although our car companies still enjoy macro benefits, the difficult days of the “swords and real guns” competition are coming. After all, survival and development are inseparable from technological innovation and superior quality.