Can foreign electric vehicles rush out of China's "fog and haze"?


According to reports, under the environmental pressure of controlling haze, the huge potential of China's electric vehicle market is expected to accelerate its release, and foreign car companies have bet on China. However, under the influence of local protection and local car companies, foreign electric vehicle companies also face many challenges.

As the smog detonated the electric vehicle market in China as the smog increased, the government’s support for electric vehicles has also increased. China is expected to become the world's largest electric vehicle market. Foreign car companies have bet on China.

Volkswagen plans to start production of electric vehicles in China from 2016. By 2020, there will be 10 models of pure electric vehicles exclusively for China. At the same time, Volkswagen's luxury car brand "Audi" will also introduce a hybrid version.

Japanese auto makers are not to be outdone. Toyota's hybrid vehicles developed for the Chinese market will be put into production next year; another auto giant Honda will cooperate with Dongfeng Motor and GAC to start the localization of hybrid vehicles in 2016.

American electric car companies move more quickly. Tesla opened China's first direct-operated store in Beijing at the end of last year. The first batch of pure-electric sports car ModelS is expected to be delivered in March this year. In addition to the recently opened Beijing flagship store, the company plans to open more than a dozen stores in China this year.

China is the world’s largest auto sales market, with sales of about 22 million vehicles last year, while electric vehicles sold less than 20,000 vehicles. Before this, the government plans to increase the sales of electric vehicles to 5 million by 2020. Under the pressure of environmental protection, the demand for electric vehicles is expected to accelerate, and the global auto giants will compete fiercely in the Chinese electric vehicle market.

Excessive expansion of foreign car prices is not effective In the face of the huge potential of China's electric vehicle market, foreign electric car companies are also facing many challenges, radical expansion is difficult to achieve results.

First, it is an obstacle to local protection. At present, most of the development of China's electric vehicle industry depends on local government subsidies, and local protection is difficult to avoid.

Take BYD, a local car company, as an example, the electric car "Qin" launched in Shenzhen can enjoy a subsidy of 70,000 yuan in Shenzhen, and can directly apply for a license. In Beijing, it can only enjoy the state subsidy of 35,000 yuan, and it is still difficult to "settle down." The situation.

The threshold for local protection is difficult to break even for local companies, and it is even more difficult for foreign brands. At this stage, Tesla is participating in the car swaying number in the same way as traditional cars in Beijing. However, it cannot enjoy the national new energy subsidy policy, and it cannot even benefit from local subsidies. With the gradual increase of local subsidies for local vehicle companies, the entry threshold for foreign electric vehicles will be even higher.

According to Tesla’s previous forecast, China’s sales this year will account for one-third of company’s sales growth, which means that the company will sell about 8,000 vehicles in China this year. Compared with the sales volume of electric vehicles in China with less than 20,000 cars per year, this plan is too aggressive and it will be difficult to accomplish the goals.

Second, the competition from local car companies can not be underestimated. In addition to BYD who once said that “there can be a “Tesla” that can be produced in minutes”, local auto companies such as SAIC, FAW Group, Dongfeng Motor and Changan Automobile have all introduced hybrid vehicles in China.

According to statistics, in the first half of last year, China-made hybrid electric vehicles that received China's listing permit reached 28 models, which is about twice that of imported brands. China’s electric vehicles have taken absolute advantage in terms of quantity.

In terms of quality, local car companies are also expected to catch up. Wanxiang Group has recently succeeded in capturing the bankruptcy assets of American electric car manufacturer Fisker. In addition, Fisker battery suppliers previously purchased have also been furthering the production of their own electric vehicles. Fisker is Tesla's former rival. The birth of the Chinese version of Fisker will have a strong impact on foreign electric vehicles.

In addition, the lack of charging networks has not yet been resolved. At this stage, only the government has enough resources to build a charging network for electric vehicles. Foreign car companies can do nothing about this. This is also the main reason why the development of electric vehicles in China lags behind the United States. For most consumers, whether or not it is convenient to charge the car is an important indicator for purchasing an electric car.

The "rich second generation" will pay for foreign electric cars?

In fact, foreign electric vehicle companies in China are not without opportunities. Under the anti-corruption pressure, China's rich are looking for new ways to display their wealth. The purchase of fashionable and environmentally friendly imported electric vehicles just can achieve this goal.

In recent years, the Chinese market has contributed half of the sales to the Mercedes-Benz S-Class, indicating that the Chinese automobile market has a very strong ability to accept high-end automotive products globally.

The market survey shows that after the 90th, it is becoming the main single-person population in the high-end car market. The rapid growth of spending power after 90 (mainly due to accumulation of parents or family members) has made the car focus of high-end car consumers into appearance and performance, rather than the most important safety and quality factors after the 60s and 70s.

Because the operating principle of electric vehicles is different from that of traditional internal-combustion vehicles, it naturally has the appearance of a luxury car with rapid appearance and rapid acceleration. Changes in consumer attitudes have provided new market opportunities for the entry of foreign electric vehicles.

On the other hand, after positioning as a luxury car, the upside of the market sales price will be opened, and the cost-constrained issues such as government subsidies and charging station construction will also be solved. Accurate market positioning has become an important support factor for foreign electric vehicles to increase market share.

Conclusion In the electric vehicle market in China, the advantages of foreign electric vehicle companies are not obvious, and radical expansion by traditional means is ineffective.


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