New Energy Vehicle Super Running "Curve Overtaking" Demand for Improvement

"If we can achieve reasonable policy support, car companies strengthen their own R&D technologies and products, and accelerate the integration of cross-border capital and technology such as 'Internet Plus', the dream of 'curving overtaking' is achievable."

Recently, Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology, spoke about the timetable for China to study the suspension of the sale of conventional fuel vehicles, which triggered a warm response from the market.

Although the Ministry of Industry and Information Technology did not give a specific timetable, there were experts who stated that the complete ban on the sale of fuel vehicles by 2025 is not realistic, but the new energy vehicle market will continue to expand and ultimately dominate the development of the Chinese auto industry is beyond doubt. This is an opportunity and a challenge for Chinese car companies. If they can grasp it, it is possible to achieve “turning overtaking”. Otherwise, this may be a step-by-step mistake and backward everywhere in this round of major industry adjustments.

China's new energy vehicle industry "curve crossing" needs more breakthroughs. The first is that as a car company must have a longer-term plan for this, and accelerate the investment in technology and product R&D. Electric batteries, capacitors, drive motors and electric accessories are the three core technologies for new energy vehicles. Interestingly, the former chairman of Gree Electric Co., Ltd. Dong Mingzhu invested Yinlong in his personal capacity and continued to increase holdings, and externally claimed Tesla charging for a few hours, and Yinlong titanium battery can put a bus in 10 minutes. The amount is full. Regardless of whether Yinlong Titanium Battery meets such technical standards, Yinlong has deployed 7 industrial parks nationwide in 2017, especially planned to invest approximately RMB 19.5 billion in the construction of Zhuhai Yinlong New Energy Industrial Park, including the production base and R&D. The center mainly produces lithium titanate batteries, hydrogen fuel cells, pure electric buses, energy storage systems, and electrical control integrated systems. It can be seen that Dong Mingzhu and Liu Dongdong, the chairman of JD.com, and Wang Jianlin, the chairman of Wanda Group, have invested in Yinlong, still aiming at the huge industrial development imagination behind it.

Judging from the current new energy vehicles, foreign car companies have relatively more technological advantages, but domestic car companies including BYD have also been committed to research and development and product transformation in the field of new energy vehicles for many years. In recent years, Internet giants and other industrial giants have entered the field of new energy vehicles across borders, such as Shen Haijun, former vice president of Qihoo 360, Li Bin, chairman of Yi car network, Li Xiang, founder of Car Home, He Xiaopeng, former president of UC, and others. One after another, there have been more than a dozen start-up car companies in the Chinese market, and they have also brought about different technologies and product thinking from traditional car manufacturers.

For example, Xiaopeng Automobile, founded by He Xiaopeng, took the development of “Three Powers and One Screen” (motors, batteries, electronic controls, and large screens and meters for control) as the starting point for the research and development of the core system of Internet vehicles. The product announcement test was completed in July of this year. , became the first domestic Internet car company to get product announcements. Baidu and Chery have reached a strategic cooperation and will launch comprehensive cooperation in the networking, highly automated driving, and driverless driving. With the "Internet + Automotive" innovative cooperation model, they will jointly explore the maturity and commercialization of autopilot technology and leverage Baidu's intelligence in artificial intelligence. , Big Data and other advantages, combined with Chery's core technologies such as automotive power and new energy, to form complementary technologies. These "Internet Plus" models will all bring about the catfish effect to China's new energy vehicle industry.

Compared with Europe, the United States, Japan, and other countries and regions, China’s auto market has a huge volume, and it also maintains a relatively high growth rate, which is bound to be regarded as a contestable position by Chinese and foreign car companies. The key to competition in the new energy vehicle industry lies in the dispute between technology and standards. In 2014, Tesla CEO Musk announced that 223 electric vehicle patents owned by open-source Tesla have demonstrated their technical confidence on the one hand, and open source patents on the other to attract more developers to join the Tesla camp. After the upstream and downstream manufacturers and the market chose this technology route and made it the mainstream, Tesla took the lead in the technical standards of the new energy automotive industry. The use of such open source patents by Chinese automobile enterprises can avoid detours and reduce R&D costs, but they must also avoid Tesla’s “patent captives”. Adhering to independent research and development and competing for patent highlands is the core of Chinese car companies' competition in the future of new energy vehicles.

The government has provided policy support for new energy vehicles over the years, but the boundaries of policy support need the attention of relevant departments. After all, policy support also has the opposite side of coins, that is, it may overstimulate the development of an immature market, and even some companies may falsify in order to obtain a policy dividend. In the past two years, the government adopted preferential tax policies in order to encourage the development of small-displacement vehicles. Although sales of small-displacement vehicles have increased to a certain extent in the past, they are limited to the concept of the Chinese people and certain products and technologies exist in small-displacement vehicles. The bottleneck caused subsequent development to be less than expected. This lesson should be drawn.

Can China's new energy vehicles not catch up with the car companies in other countries in the world in the next 10 to 20 years, and may even catch up? If we can achieve reasonable support for policies, car companies to strengthen independent research and development technology and products, "Internet +" and other cross-border capital and technology to accelerate integration, the dream can be turned into reality.

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