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With the replacement of new energy vehicles, China's new energy vehicle market has experienced a decline for four consecutive months, with sales of only 75000 vehicles in October, down 45.6 per cent from a year earlier. In this environment, the Ministry of Industry and Information Technology also issued a public announcement on the list of new energy vehicles exempted from vehicle purchase tax. According to the catalogue, since the release of the twenty-first batch of the catalogue in November 2018, a total of 141 models have no production or import in 12 months and are proposed to be withdrawn from the catalogue.

It is understood that the Ministry of Industry and Information Technology revoked the exemption of vehicle purchase tax on the vast majority of new energy models are commercial vehicles, only a small number of passenger vehicles appear in the list. From the catalogue, it includes not only old car companies but also new car companies, such as Weimar EX5 400s and EX5 pro models; SAIC Roewe eRX5 and Roewe ei6, Mingjue eMG6, BYD Qin Pro, Haima E7 and Zhidou D3 and other models.

It is indeed a bit unexpected for these models. For example, BYD also received a promotion subsidy of 3.461 billion yuan from the Ministry of Industry and Information Technology in October this year, and Weima, as a new power head car company, should also be supported by the promotion of new energy. why was it cancelled?

In fact, the large-scale clean-up are all "zombie" models. According to the Ministry of Industry and Information Technology, after the release of the 21st batch of the catalogue in November 2018, most of the 141 models are proposed to be withdrawn from the catalogue because there is no production or import within 12 months, and the public display period will last until November 18.

Usually models enter the removed "catalogue" for product updates or stop production, car companies take the initiative to give up. For example, Weimar said, "the cancelled exemption models do not involve existing models on sale, which are Weima EX5 400s, EX5 Pro300 models and EX5 Pro400 models respectively. The condition for cancellation is that our company has not arranged a production plan within one year under this announcement, which has no impact on the orders and sales of current Weima models."

The three Weima models were originally planned to use batteries from another supplier, but they all used batteries from the Ningde era, so they are now out of sale.

It is also because when the catalogue was launched, the new energy models requiring exemption should have a maximum speed of 30 minutes no less than 100km/h, and the mass energy density of power battery system should not be lower than that of 95Wh/kg in terms of mileage. With the implementation of the new subsidy policy, there have been new changes in mileage and batteries.

New energy subsidy new policy, pure electric passenger cars with mileage greater than or equal to 250km, models less than 400km have 18000 yuan subsidy, otherwise there will be no subsidy. Therefore, in order to meet the subsidy requirements, we can only launch new models with higher mileage in order to meet the needs of the market.

In October, the Ningbo Intermediate people's Court of Zhejiang Province approved an auction of the 100% stake in Lanzhou Zidou Electric vehicle Co., Ltd., starting at 138 million yuan. It means that Zhidou Motors, the only subsidized car company that has been caught in a debt crisis, has stopped production because of financial problems, and the model has to be cancelled. The decline of Haima cars, which is also in trouble at the production level, has led to the disqualification of Haima E7 from purchase tax.

In fact, in addition to the suspension of production due to poor management, most models are cancelled because of model replacement and update, which has little impact on the models on sale. On the road of promoting the sustainable development of new energy, release more resources to support potential models, which is beneficial to the development of the overall car market.

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