What most people don't expect is that new energy has become the only bright spot in the sluggish auto market.

Although the subsidy policy is still an important factor for consumers to buy new energy vehicles at this stage, consumer demand has been enhanced and more mature and reasonable compared with the low-cost strategy in previous years. In the context of the automobile market from incremental to inventory, and from traditional fuel vehicles to new energy and intelligent vehicles, automobile companies must rely on innovation to break through the high-end market. At the same time, new energy vehicles into the fast lane, originally in the field of fuel cars “end of the road” vulnerable independent brands, through new energy, or new car manufacturers to find a new business growth point.

In the post-subsidy era of subsidy decline and double-point policy, what changes will be ushered in the domestic new energy vehicle industry? With the introduction of the new energy subsidy policy, the performance of new energy vehicles will be further segmented after the transition period. While expanding the industry's production capacity, the increasing number of new entrants will lead to white-hot competition. With the opening of the domestic auto market, a large number of foreign brands of new energy vehicles will enter the Chinese market. after 2020, the competitive landscape of domestic electric vehicles will change comprehensively. Public data show that the chain reaction triggered by the subsidy decline has already appeared, compared with the same period last year, the overall profit of these listed companies dropped significantly.

In 2017, new energy vehicle sales exceeded 760,000 units%. this figure climbed again in the first half of 2008. By the end of July 2008, China's new energy vehicle sales were close to 500,000 units, up more than 97% year-on-year. At this rate of development, by 2018, China's electric vehicle market will grow 40-50%, and the annual sales of new energy vehicles may exceed 1 million units. According to the Ministry of Finance, the number of new energy promotions will exceed 1.5 million this year, which will lead the world for three consecutive years.

A large number of new energy vehicle companies are facing a 30%+ subsidy recession, which is certainly a fatal blow to the new energy vehicle production and sales market that relies on policy dividends and subsidies. Also in 2020, the new energy vehicle subsidy policy will come to an end, and new vehicle manufacturers will surely want to deliver and stabilize the market within the window and enjoy the policy dividend. Industry insiders believe that the lack of adequate system capabilities and technical strength, vulnerable independent brands are just “lifelong”, or even the last gasp, the chances of turning the situation around are not great.

Although total auto production and sales are on a double-decline trend, new energy vehicles are still maintaining high growth. Industry analysis points out that the exuberant production and consumption before the withdrawal of subsidies, these factors will work together to provide the basis for the continued prosperity of new energy vehicles in the future. But on the other hand, under the multi-factor fermentation of subsidies, lack of core technology and intensified competition, new energy vehicles have also brought unprecedented ecological changes.

What fate awaits local brands?” “Decreasing subsidies” has become a conceptual system, which includes a comprehensive reduction of national and land subsidies, technical thresholds, product structure adjustment and many other factors. Whether cash flow, team building, channel construction or marketing, need to establish a system as soon as possible, occupy a space layout. Secondly, policy-driven will gradually shift to market-driven. This also means that the profit crisis is starting to become clearer for the automobile companies that once exchanged subsidies for temporary profits.

Pool technology has not yet made fundamental breakthroughs, some key components of new energy vehicles are still restricted. At the same time, insufficient high-end production capacity and excess low-end production capacity coexist, blindly expanding the industry, and the phenomenon of over-investment is obvious. Automobile enterprises to get rid of the dependence on subsidies, the most important thing is not to subsidize the starting point for product development, but through product improvement to gradually improve profitability.