New Energy Vehicles Becoming a Driving Force in Auto Industry

The negative growth of China’s auto sales in 2018 was almost a foregone conclusion, and the overall growth of auto sales in 2019 will be stagnant, disclosed Shi Jianhua, deputy secretary general of China Association of Automobile Manufactures (CAAM), on December 6, 2018 in Shenzhen. But here is the silver lining: new energy vehicles (NEVs) shall continue to grow, and it’s estimated that by the end of 2020, a total of 2 million NEVs will be sold in China.

The decline of traditional vehicles versus the popularity of NEVs has become a general consensus in China’s auto industry. In the eyes of Shi, NEVs will be a driving force of the stagnant auto industry in the next few years.

What is also generally acknowledged is that in addition to passenger vehicles, there is great potential in the development of logistics vehicles, sanitation trucks, farm vehicles, and mini electric cars, which need to be tapped into in the future.

At the same time, in the field of automotive batteries, a key proponent of the NEV industry chain, a reshuffling is underway with the decline of incentives from the Chinese government for electric vehicles.

In the future, experts say that NEVs will be subdivided into fuelefficient vehicles, battery electric vehicles (BEVs), hybrid vehicles, and intelligent connected vehicles.