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At the end of April, the Ministry of Industry and Information Technology issued the Notice on Financial Support Policies for the Promotion and Application of New Energy Vehicles in 2016~2020 (hereinafter referred to as the "Notice"), the "Notice" significantly accelerated the decline rate of model subsidy standards, on the basis of the 2016 subsidy standards, 20% in 2017~2018, and 40%
in 2019~2020.
Different from the policies of previous years, the Notice not only sets the minimum subsidy threshold, but also gives obviously different subsidy standards
for each market segment divided due to different cruising ranges.
Although from the current cruising range of new energy models, most models are more than 150 kilometers, but there are a few models with a range of less than
150 kilometers.
The analysis pointed out that due to the tilt of national financial subsidies, a range of 150 kilometers may become a watershed
for future new energy vehicle subsidies.
It is inevitable that new energy vehicle subsidies will shrink or even eventually withdraw, due to the difficulty of breaking through battery technology in the short term, coupled with the constraints of infrastructure such as charging piles, plug-in hybrid is the most suitable technology choice
for the current market.
The relevant person in charge of BAIC New Energy revealed that BAIC will master the core technologies in the field of electronic control, battery and motor through cooperation with Atieva of the United States, SK of South Korea, Siemens of Germany and other companies, and rely on scale effects, technological breakthroughs and marketing model innovation to cope with the sales pressure
brought by the decline of financial subsidies.
At the end of April, the Ministry of Industry and Information Technology issued the Notice on Financial Support Policies for the Promotion and Application of New Energy Vehicles in 2016~2020 (hereinafter referred to as the "Notice"), the "Notice" significantly accelerated the decline rate of model subsidy standards, on the basis of the 2016 subsidy standards, 20% in 2017~2018, and 40%
in 2019~2020.
Different from the policies of previous years, the Notice not only sets the minimum subsidy threshold, but also gives obviously different subsidy standards
for each market segment divided due to different cruising ranges.
Although from the current cruising range of new energy models, most models are more than 150 kilometers, but there are a few models with a range of less than
150 kilometers.
The analysis pointed out that due to the tilt of national financial subsidies, a range of 150 kilometers may become a watershed
for future new energy vehicle subsidies.
It is inevitable that new energy vehicle subsidies will shrink or even eventually withdraw, due to the difficulty of breaking through battery technology in the short term, coupled with the constraints of infrastructure such as charging piles, plug-in hybrid is the most suitable technology choice
for the current market.
The relevant person in charge of BAIC New Energy revealed that BAIC will master the core technologies in the field of electronic control, battery and motor through cooperation with Atieva of the United States, SK of South Korea, Siemens of Germany and other companies, and rely on scale effects, technological breakthroughs and marketing model innovation to cope with the sales pressure
brought by the decline of financial subsidies.
