In comparison to the frequent policy adjustments in the new energy sector at the start and mid-year, the market has recently shown greater stability. Following periods of fluctuation, including catalog changes, subsidy cuts, and temporary suspensions, automakers are now starting to gain momentum. Among them, mainstream new energy models have shifted from hybrid to fully electric from the beginning. It's evident from the sales data released by the China Urban Electric Vehicle Council that top-selling pure electric models like the BAIC EC series, JAC IEV series, and Zhidou D2 all fall within a 200 km range, with subsidies around 50,000 yuan.
According to industry sources, the subsidy framework for pure electric passenger cars will undergo significant changes in 2018. With the general trend of reduced subsidies, the new policy will follow a "benefit and strengthen support" approach. Vehicles with longer driving ranges, higher battery energy density, and lower power consumption will receive increased subsidies, while those lacking these features will see reduced or no subsidies. This shift will mark a major transformation in the new energy vehicle market this year, with the performance of each model being judged on three key factors.
The 300 km range is becoming a standard for mainstream models. Vehicles with more than 300 km of battery life will be eligible for higher subsidies, and models with 400 km or more will even qualify for additional incentives. On the other hand, vehicles with less than 300 km range will see a significant reduction in subsidies, and the minimum required range will increase from 100 km to 150 km. This change suggests that current popular models with shorter ranges may lose some of their appeal. Given similar pricing, more consumers are likely to choose models with over 300 km of range, prompting manufacturers to adjust their strategies toward long-range models.
Battery technology is set to become a major challenge for new energy companies. Under the new subsidy policy, there are clear requirements for power batteries, raising the minimum energy density from 90 Wh/kg to 105 Wh/kg. Only models with a battery density of 140 Wh/kg or higher will qualify for a 1.1 times adjustment factor, while those between 105-120 Wh/kg will see their subsidies cut to 0.5 times. Additionally, power consumption standards have been revised—only vehicles with actual power consumption below 65% of the required level will receive a 1.1 times adjustment, while those exceeding 90% will no longer qualify for any adjustment.
As a result, in 2018, the trend in the new energy sector is expected to favor pure electric models with over 300 km range, priced under 50,000 yuan, as well as vehicles with high battery density and low power consumption. Observant buyers may have noticed that several automakers have already launched models with more than 300 km of range. Models such as the Beiqi EU300, Tiggo 3Xe, Dongfeng Fengshen E70, and Geely Emgrand EV300 are among the popular choices. I believe next year will be a pivotal year for these models, marking a new era of growth and innovation in the electric vehicle market.
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ShenZhen Puchen Electronics Co., Ltd. , https://www.szpuchen.com