The NDRC strictly controls the production capacity of fuel vehicles

Fuel-powered vehicles have long been a mainstay of the auto industry. However, with the increasing environmental pollution, oil resources gradually exhausted and other problems, new energy vehicles began to become a new growth point in the car market. In the context of the continuous expansion of production capacity in order to seize the future market, the problem of overcapacity began to emerge, and the negative impact of new production capacity on the industry and the market for fuel vehicles was once discussed.

Recently, a news will fuel car enterprises once again pushed to the cusp. , director-general of the department of National Development and Reform Commission (NDRC) industry in yong, said that the relevant departments are currently drafting the opinion about car investment project management, the content including a ban on the approved new traditional fuel vehicle production enterprise investment project, strict control of the existing automobile enterprises to expand traditional fuel vehicle capacity, strengthen the capacity monitoring, analysis and early warning.

That is to say, in addition to the approved establishment of fuel car plants, there will be no new plants to produce fuel car in the future, and the capacity of existing fuel car plants will be strictly controlled. You know, "capacity" is a measure of the strength of a car company and ensure the sales of an important factor. Controlling the production capacity of fuel vehicles is tantamount to strangling the throat of automobile enterprises.

Signs of "limiting fuel car capacity" are becoming more apparent

This is not the first time the government has signalled a "limit on fuel car capacity".

On December 20 last year, the State Council released the Catalogue of Investment Projects Approved by the Government. In particular, the Catalogue stressed that, in principle, no new traditional oil vehicle production enterprises should be approved, and actively guide the healthy and orderly development of new energy vehicles. In addition, according to the National Development Plan of Strategic Emerging Industries during the 13th Five-Year Plan period, the new energy automobile industry is one of the eight strategic emerging industries during the 13th Five-Year Plan period.

Meanwhile, 13 auto companies, including Shuanghuan and Qingling, were stripped of their qualifications to produce passenger cars by the Ministry of Industry and Information Technology last year. This means that the auto industry has started the process of cutting capacity.

A decade ago, when China was producing and selling fewer than 8m cars a year, the National Development and Reform Commission (NDRC) included the car industry in its list of "overheated industries". Today, more than 28m cars are produced and sold annually in China, more than three times the size of that year.

According to the signals released by the government, it is not difficult to draw a conclusion that it is the only way for the automobile industry to promote the transition from traditional fuel vehicles with high pollution and high emission to new energy vehicles with zero or low emission.

"The national restriction policy on fuel vehicles is an important guide for the transformation and upgrading of the auto industry. New energy vehicles represent the future development direction of the auto industry, and traditional auto companies should actively expand new energy vehicle business." "Said Zhang Juan, deputy director of the research department of the China Electric Vehicle Association.

Companies struggling between fuel and new energy vehicles

All kinds of signs show that the future car market must belong to new energy vehicles, but the status and influence of fuel vehicles still make many car companies reluctant to leave. Although the policy does not approve the establishment of new companies, but does not mean that the existing car companies can not expand capacity. In fact, many traditional auto companies in China are continuing to expand production capacity.

Last October, Honda announced that it would build a new Dongfeng Honda passenger car plant in Wuhan, with production slated to begin by spring 2019, increasing its capacity in China by 20 per cent. Gac passenger Vehicles will build gaC's own brand Xinjiang project in Urumqi with a total investment of about 1.6 billion yuan, which will be completed in two phases. In addition, a number of auto companies are scrambling to expand production capacity for fuel-efficient vehicles.

Companies are reluctant to leave the "fuel car" sector, both because of the important role they play in the market and because demand remains strong. In contrast, although new energy vehicles have been strongly supported and publicized by the policy, their popularity has been affected due to their late appearance and imperfect supporting facilities such as charging piles. At the same time, the development progress of new energy vehicles among the major automobile companies is inconsistent, and some enterprises' technology is not particularly mature, so it still needs a period of time to transition.

'Oil to electricity' is a long process, which involves a very wide range. Zhong Shi, an independent auto industry writer and industry analyst, said in an interview that "the NDRC's announcement that it will strictly control the production capacity of fuel vehicles seems to be strict, but it is not a one-size-fits-all statement. It just doesn't allow companies to expand the production capacity of fuel vehicles, rather than not producing fuel vehicles."

Zhong shi also said that the current market still needs fuel vehicles, but the "need" does not mean that the expansion of fuel vehicle capacity, "new energy vehicles is the trend of The Times."

The market for new energy vehicles is surging again

In an effort to promote new energy vehicles, The US state of California has announced that it may ban the sale of conventional fuel vehicles by 2030. The German Bundestag has passed a resolution to ban petrol cars from the roads in the future. At the same time, Germany will negotiate with the European Union to extend the resolution to all of Europe.

Although in recent years, the development of new energy vehicles in China is fast, but compared with the progress of some European and American countries, the gap is still large. Some independent brands, including BYD, Chang 'an and Chery, have made certain achievements in the field of new energy vehicles by accelerating research and development and increasing investment, thus speeding up the technological gap with international famous automobile brands.

In the context of frequent signals from the government, joint venture brands are also starting to layout the new energy vehicle market. Recently, the news of "Volkswagen's joint venture with JAC to produce new energy vehicles" has become the focus of attention in the industry. Since JAC is Volkswagen's third passenger vehicle joint venture partner, it has also triggered the controversy of suspected violation of industrial policy. Once the joint venture between Volkswagen and JAC is approved, other foreign auto companies will take this as an example to find partners for cooperation on new energy passenger vehicle projects. The competition in the new energy vehicle market will also become more intense.

Although China's automobile industry is still in the transition stage of new energy vehicles, new energy vehicles are destined to become the leading role in the market from the perspective of energy environment, policy guidance and future trend. In the throes of "switching from oil to electricity", any enterprise that can limit the scale of fuel vehicles and insist on investment and research and development in the field of new energy will become the market leader in the future.