New energy vehicles are often said to be "changing lanes and overtaking," but how can this dream become a reality? This is a question worth deep consideration. The first step should be to move away from subsidies and focus on mastering core technologies in key areas, which will help transform the vision into reality.
"In the field of internal combustion engines, it's hard for China to catch up with developed automotive nations. However, with new energy vehicles, the three-electric system has replaced the traditional engine, giving everyone a level playing field." These words from Huang Jian, chairman of the Fujian New Energy Automobile Industry Strategic Alliance, reflect the general sentiment in the industry. During interviews, the phrase "changing lanes to overtake" has become a common expression.
Indeed, whether it's the competition between China’s auto industry and those of Europe and the U.S., or within provinces like Fujian competing with other major auto-producing regions, new energy vehicles present a rare chance for leapfrogging development.
Being on the same starting line doesn’t guarantee success. In our province and across China, new energy vehicles still have a long way to go before they truly take off. At this stage, there are many challenges ahead.
One of the biggest hurdles is the technical threshold. Many experts believe that current limitations in battery energy density, driving range, and cost continue to hinder the growth of new energy vehicles.
According to an authoritative report, if battery systems can achieve energy densities above 150Wh/kg, prices below 0.6 yuan/Wh, and ranges of up to 400 kilometers, combined with efficient fast-charging infrastructure, electric cars could replace conventional fuel vehicles of the same class.
Currently, Ningde Era New Energy has surpassed this standard in battery energy density and is pushing toward even higher levels. However, reducing battery costs remains a challenge. Additionally, improving range through collaborative innovation in the "three powers" and expanding charging infrastructure will take time.
Thanks to policy support and market expansion, China's new energy vehicle industry has grown rapidly. However, the market has become overheated, and uneven development is becoming more evident.
Internally, the industry still faces many issues. For example, except for products like Ningde Era's power batteries, Jinlong’s electric buses, and Xiamen Tungsten’s motors, most other products have lower technical standards. Insufficient basic technology accumulation, limited R&D investment, small core technologies, a shortage of high-level professionals, low auto parts ratio, and higher manufacturing costs all pose challenges. Additionally, incomplete sales and after-sales systems further restrict progress.
Industry leaders believe that China's new energy vehicle sector is still in the transition phase from introduction to growth, not yet at the high-speed development stage seen elsewhere. It needs broader support from all sectors.
When it comes to support, subsidies are a topic that cannot be ignored. Take Yundu New Energy as an example: its π1 model has a pre-subsidy price of 138,900 to 197,500 yuan, but after subsidies, it drops to 74,900 to 119,900 yuan. Clearly, subsidies are currently the most effective way to boost market penetration. However, their gradual withdrawal is inevitable.
The industry believes that subsidies aim to encourage innovation and stimulate consumption, but they are only a temporary push, not a long-term solution. With a solid foundation in place, the industry should now focus on returning to product quality, market demand, and driving real technological advancements. Xu Haidong, assistant secretary-general of the China Association of Automobile Manufacturers, states that while subsidy policies are becoming stricter, they are meant to encourage innovation rather than let companies rely on financial support.
As a follow-up to subsidy withdrawal, the “double points†policy will shift from incentives to mandatory requirements, pushing companies to develop new energy vehicles and gradually moving the industry toward a market-driven approach. Experts suggest setting up government-funded industry funds and encouraging social capital to address short-term funding issues. In the long run, building self-sustaining capabilities is key.
“Subsidies are like an oxygen tube; they must eventually be removed, so it's more important to stay healthy,†says Huang Jian. In the face of global competition, only by encouraging and guiding companies to invest in R&D and master core technologies can they remain competitive.
The reporter believes that true self-sustaining capacity includes building a modern manufacturing system, gathering industry chains, maintaining market scale, breaking through technological bottlenecks through collaboration, sustaining brand growth, improving corporate competitiveness, and ensuring industrial security.
We have every reason to believe that as technology matures, products upgrade, service improves, and costs decrease, the new energy vehicle industry will grow in scale and efficiency, and the impact of policy subsidies will diminish. At that point, “changing lanes to overtake†will no longer be a dream but a reality.
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