New Energy Passenger Vehicle Subsidy Transition Period Ends Stable Terminal Trading Price

From the 12th of this month, the amount of new energy subsidies has changed again. According to the "Circular on Adjusting and Perfecting the Policies for the Promotion and Application of Financial Subsidies for New Energy Vehicles" (hereinafter referred to as the "Notice"), a new round of subsidy policy has been implemented since June 12, 2018. Among them, the subsidies for pure electric vehicles will be subject to the three indicators of “pure electric driving range”, “battery system quality energy density” and “hundred kilometers of power consumption”. Then, is the change in subsidies before and after the implementation of the New Deal obvious? Will the terminal price affect the consumer's car purchase? In response, the reporter conducted a market survey.

Subsidized New Deal Standards More Detailed

It is not difficult to see from the table below that in the case of new energy passenger vehicles, the New Deal was subsidized in 2018 according to the cruising range, and the subsidy standards were divided into six grades, which are more specific than the 2017 version. Among them, the model of a pure electric vehicle with a cruising range of less than 150km no longer enjoys subsidies; the subsidy for models with a cruising range of 150-250km (excluding) is reduced from the original 36,000 yuan to 15,000 yuan to 24,000 yuan, and the reduction rate is about 33. %-58% range; subsidy for vehicles with cruising range of 300-400km (excluding) is increased from 44,000 yuan to 45,000 yuan, while for vehicles of 400 kilometers and above, subsidies are increased to 50,000 yuan.

In addition, in the subsidy policy of 2018, the subsidy standards not only adjusted the cruising range, but also adopted a more detailed subsidy method, which puts forward corresponding standards for battery energy density and energy consumption. Therefore, the subsidy amount for bicycles (mile allowance Standard × battery system energy density adjustment coefficient × vehicle energy consumption adjustment coefficient) is set on the line, that is, the upper limit of unit battery power subsidies does not exceed 1200 yuan/kWh. Cui Dongshu, Secretary General of the Passenger Car Market Information Association, said: “The biggest feature of the New Deal is to significantly increase the battery energy density standard, promote the growth of high-end passenger vehicles, promote the upgrade of special vehicles, and achieve high quality growth.”

State-subsidy comparison of pure electric vehicles

Length of voyage mileage in 2017 (ten thousand yuan) Subsidy amount in transitional period (ten thousand yuan) Subsidy amount in 2018 (ten thousand yuan)

100?R<150 2 1.4 0

150?R<200 3.6 2.52 1.5

200?R<250 3.6 2.52 2.4

250?R<300 4.4 3.08 3.4

300?R<400 4.4 3.08 4.5

R≥400 4.4 3.08 5

Terminal market price stability

As soon as the subsidy amount changes, the consumer's attention is immediately shifted to the final transaction price of the vehicle. Ms. Liu, who is about to buy a car, asked the reporter: “I’ve been optimistic about Beijing Auto New Energy EU5 with a cruising range of more than 400km. Now that the subsidies have increased, is the final transaction price even lower?”

In order to solve the doubts of the pre-purchasers like Ms. Liu, the reporter asked a number of new energy distributors.

â–  BAIC New Energy EU5

Integrated operating range mileage: 416km, 450km

Official guidance price (after subsidies): 129,900 yuan - 161,900 yuan

Market Quotes: Sales are still based on the original subsidy after-sales price. Some models do not have a current car, and the car can offer a discount of 500 yuan.

â–  BYD Qin EV450

Integrated operating range mileage: 400km

Official guidance price (after subsidies): 149,900 yuan - 169,900 yuan

Market conditions: Sales are still based on the original subsidy after-sales prices. Low-end models do not have cars, and other models have no concessions, and fewer cars are available.

â–  Geely Imperial EV450

Integrated operating range mileage: 416km, 450km

Official guidance price (after subsidies): RMB 135,800—15.58 million

Market Quotes: Sales are still based on the original subsidy after-sales price. Low-end models are free of vehicles, and the rest of the models are priced at RMB 3,000.

â–  Guangqi Chuanqi GE3 Enjoy Version

Comprehensive operating range mileage: 310 km

Official guidance price (after subsidies): RMB 119,900

Market Quotes: Chuanqi GE3 enjoyment version has been officially listed on June 11, the current store has a car.

â–  SAIC Roewe ERX5

Integrated operating range mileage: 320km

Official guidance price (after subsidies): 198,800 yuan - 22,380,000 yuan

Market Quotes: The sale is still based on the original price of the subsidy, and the car is sufficient, with a discount of around 8,000 yuan.

â–  JAC IEV7s

Integrated operating range mileage: 280km

Official guide price (after subsidies): RMB 119,500

Market conditions: Sales are still based on the original subsidy price, and the current car is adequate, with a certain degree of preferential.

From the reporter’s investigation, it was learned that even if the subsidies were adjusted, the selling price of the terminal did not change whether it was a new model or an old model. “The price of subsidy retreat has been taken into consideration at the time when the manufacturer set the price. Therefore, in formulating the terminal price, the company also introduced a series of factory subsidy policies while considering the subsidy factors, which ensured the consistency of the price, and therefore the new subsidy. After the implementation of the policy, the terminal price has not been adjusted,” an insider told reporters.

New energy passenger cars are less affected by the market

According to the data released by the China Association of Automobile Manufacturers (CAA), in May this year, the production and sales of new energy vehicles completed 96,000 vehicles and 102,000 vehicles, respectively, an increase of 85.6% and 125.6% year-on-year respectively. Among them, sales of new energy passenger vehicles increased by 114.5% year-on-year; new energy commercial vehicles increased by 192.7% year-on-year.

"During the period of policy transition, the sales of commercial vehicles have been subject to significant changes in the subsidy policy," said Xu Haidong, assistant secretary-general of China Automobile Industry Association. The commercial vehicle market is mainly used in the second half of the year and is entering a period of new subsidies. "Beginning with the subsidy of the New Deal, the market may have a buffer period," said Xu Haidong.

"In contrast, the passenger car market is relatively stable, mainly depends on the company will continue to increase sales means to sell the car." Xu Haidong said.

"The price of new energy vehicles is the same thing is expected." Cui Dongshu said. During the policy transition period, in order to ensure the stability of sales and consumers' purchasing power, manufacturers will ensure the consistency of prices as much as possible to avoid unbalanced sales.

Under the established fact that subsidy retreats, enterprises are more cautious in setting prices. For terminal prices, at the key nodes of changes in subsidies, we must also ensure stability, in order to enhance consumer confidence.