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New energy vehicles fell sharply again in October, with sales falling 46% year-on-year. The cumulative decline has been for four consecutive months. The whole year may fall into negative growth. The new energy industry suddenly stepped on the brakes. According to this trend, the industry is worried that the development of new energy industry will stagnate. Therefore, Dong Yang, former executive vice president of the China Association of Automobile Manufacturers, strongly appealed to Beijing and other cities to relax the electric vehicle quota, thus alleviating the downward trend.

Dong Yang said that he strongly appealed to Beijing and other cities that have restricted purchases to significantly relax the purchase limit of electric vehicles in accordance with the requirements of the State Council, so as to alleviate the decline in sales of new energy vehicles caused by the overall market weakness and drastic changes in policies.

7-10 The monthly decline in new energy sales has gradually expanded, falling by 3.8%, 21.7%, 34.8% and 46% respectively, far exceeding the decline in the overall passenger car market, further exacerbating concerns about the future development of new energy.

Dong Yang believes that the main reason for the significant decline in sales of new energy vehicles in China in the second half of this year is the decline in government subsidies, of which subsidies for driving mileage of more than 250 kilometers have dropped by 47%, but due to limited cost reduction, it may be difficult for enterprises to bear.

Statistics show that due to market expansion and technological progress, the performance of batteries, motors and systems has improved significantly year by year, and costs have decreased year by year. But it is worth noting that the increase in mileage largely offset the cost reduction. In other words, although the cost of power battery and motor has been doubled, but because the driving mileage of the whole vehicle has increased from the original one or two hundred kilometers to the current four or five hundred kilometers, the battery capacity of each vehicle has doubled, resulting in a limited reduction in the actual vehicle cost. According to statistics, the average charged capacity of pure electric vehicles sold in China in 2018 is 39.3kwh, and 47.1kwh in 2019, an increase of 20%. Therefore, the actual cost of pure electric vehicles produced in China this year is roughly the same as last year. It can be seen that according to the decline in subsidies in previous years, enterprises can absorb the decline in subsidies internally under the condition that product performance is significantly improved, and this year's decline is obviously beyond the extent that enterprises can bear."Dong Yang is worried that most enterprises engaged in new energy will suffer losses, which will have a significant negative impact on technological progress in the whole industry.

Therefore, Dong Yang strongly appealed that Beijing and other cities should immediately introduce measures to relax the purchase limit of electric vehicles. Beijing and other super-large cities should increase the index of more than 100,000 new energy vehicles every year, while other cities with purchase restrictions can be less, and the total amount of relaxation nationwide should reach 300,000 to 400,000 vehicles every year. This move can not only meet the needs of the majority of users, but also have a significant remedial effect on the slowdown of the new energy vehicle market this year.

At present, the overall automobile market is weak, the willingness of individual consumers to buy new energy vehicles is weak, the market for shared cars and online car booking is full, and without strong policy support, the new energy industry will be turbulent.

In terms of new energy vehicle enterprises, BYD new energy vehicles have declined for four consecutive months, with declines of 11.84%, 23.44%, 50.97% and 54.58% from July to October respectively, further expanding the decline. Beiqi New Energy sold only 8601 new vehicles in October, down 70% year-on-year. At the same time, the new forces of car building have also accelerated their differentiation, and the whole new energy industry has a sharp downward trend.

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