New energy car, is it still fragrant?

Mondo Cars Updated on 2024-02-01

The domestic new energy vehicle industry has undoubtedly staged a drama of "rolling itself".

Once upon a time, it was still the three-legged stand of "Wei Xiaoli", and now the brands galloping on the road are becoming more and more dazzling. They are all eager to try, trying to break out of the encirclement of this red sea, and fight for their own territory in the brand advantages of traditional brands and the minds of users who occupy them.

Last week, Tesla CEO Elon Musk described his views on Chinese automakers during the 2023 annual earnings conference.

"Frankly, if the best barriers are not established, Chinese car companies will almost destroy most other car companies in the world. ”

As early as 2022, in an interview with the Financial Times, Musk mentioned that China will become a force to be reckoned with in the world automotive industry. He believes that the wave of Japanese commodity imports that occurred in the 80s and 90s of the 20th century is about to be repeated on Chinese car companies.

"The professionalism in China, and the sheer number of hardworking and intelligent people, are amazing. This makes people admire and at the same time have a hint of fear. They will get things done. ”

Whether the modest and cautious Chinese think Musk's assertion is exaggerated, it does not prevent everyone from continuing to work hard.

The market has been in the doldrums for a long time, and it is difficult for the market to raise its arms and shout in the once exciting narrative of the stars and sea in the new energy vehicle industry.

So, is the new energy car still fragrant?

Out to sea, it may be a new sea of stars

According to the data of the China Association of Automobile Manufacturers, in 2023, automobile exports will reach a new high, becoming an important force driving the growth of automobile production and sales. In December 2023, the export of new energy vehicles was 1110,000 units, up 15% month-on-month2%, a year-on-year increase of 365%。In 2023, the export of new energy vehicles will be 12030,000 units, a year-on-year increase of 776%。

Data**: China Automobile Association, January 22, 2024***Data Briefing|A Brief Analysis of Automobile Exports in 2023. Views are for informational purposes only and do not constitute investment advice or commitment.

Review of China's development.

In 2009, China's automobile production and sales ranked first in the world;

In 2015, China became the world's largest market for new energy vehicles;

In 2022, China overtook Germany to become the world's second-largest exporter of automobiles.

Each milestone is a proof of the improvement of China's first-class manufacturing capacity, marking that China gradually has the strength to export products and influence to the world.

As the pace of China's new energy vehicles going overseas continues to accelerate, its overseas mode has also moved from the past "product going overseas" to a new stage of "industrial chain going overseas", including the whole industrial chain of vehicles, technology, brands, power batteries, charging piles and other industrial chains are accelerating to go overseas.

Frequent policies, valuation depressions, and new opportunities for the involution track?

Since 2023, relevant departments have frequently launched policies involving consumption vouchers, subsidies, and improvement of charging infrastructure for new energy vehicles, injecting strong impetus into the development of the new energy vehicle industry.

January 30, 2023.

The Ministry of Industry and Information Technology and other eight departments jointly issued the "Notice on Organizing and Carrying out the Pilot Work of the Comprehensive Electrification of Vehicles in the Public Domain", which requires the improvement of the construction of charging and swapping infrastructure, and the construction of a moderately advanced, balanced layout, intelligent and efficient charging and swapping infrastructure system.

May 17, 2023.

The National Development and Reform Commission and the National Energy Administration jointly issued the "Implementation Opinions on Accelerating the Construction of Charging Infrastructure to Better Support New Energy Vehicles in the Countryside and Rural Revitalization", focusing on the bottleneck problem of restricting new energy vehicles in the countryside, and putting forward specific measures in innovating the operation and maintenance mode of charging infrastructure construction in rural areas, supporting the purchase and use of new energy vehicles in rural areas, and strengthening the management of new energy vehicles publicity services in rural areas.

June 8, 2023.

**The "Guiding Opinions on Further Building a High-quality Charging Infrastructure System" issued by the General Office proposes that by 2030, a high-quality charging infrastructure system with extensive coverage, moderate scale, reasonable structure and perfect functions will be basically built, which will strongly support the development of the new energy vehicle industry and effectively meet the important goal of the people's travel charging needs.

June 19, 2023.

The Ministry of Finance, the State Administration of Taxation and the Ministry of Industry and Information Technology issued the Announcement on Extending and Optimizing the Vehicle Purchase Tax Reduction and Exemption Policy for New Energy Vehicles, clarifying the preferential policies for the purchase tax of new energy vehicles in the next four years to support the development of the new energy vehicle industry and promote automobile consumption.

December 11, 2023.

The Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation jointly issued the Announcement on Adjusting the Technical Requirements for New Energy Vehicle Products for Vehicle Purchase Tax Reduction and Exemption, clarifying the technical conditions and implementation requirements applicable to the vehicle purchase tax reduction and exemption policy for new energy vehicles after 2024.

As of December 31, 2023, the CSI New Energy Vehicle Index (399976SZ) has a quantile of 366%, a significant decrease from 2021 and at a historically low level.

CSI New Energy Vehicle Index (399976SZ) quantile level change.

Data**: wind, the statistical period is from November 28, 2014 to December 31, 2023.

For the protracted competition in the field of new energy vehicles, some people have commented like this"The competition of smart electric vehicle companies is a marathon, but the 4-kilometer node will be eliminated in one round. ”

The more you get to the second half, the more you get into the endurance race. This seems to be the same ability that we need to wait for the investment market to bottom.

Risk Warning. Market views are for informational purposes only and are subject to change with market changes and do not constitute any investment advice or commitment. **There are risks and investment should be cautious.

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