Accelerated Development of the Global New Energy Automobile Industry (International Perspective)

Accelerated Development of the Global New Energy Automobile Industry (International Perspective)

At present, the development of the global new energy automobile industry is on the fast track, the R&D and application of new products and technologies are being accelerated, and technological innovation drives the continuous upgrading of the industry. As an important force leading the transformation and upgrading of the global auto industry, China actively participates in international cooperation in the field of new energy vehicles and contributes to the development of the new energy vehicle industry.

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At the 2022 Paris International Motor Show held recently, nearly a hundred companies in the field of new energy vehicles from electrification, hydrogen fuel, vehicle technology, and smart travel showed their latest products. Seizing the opportunity of new energy development has become the common choice of world-renowned car companies. According to the analysis, the international community should continue to work together to accelerate the low-carbon transformation of the auto industry and build a more secure, stable, and win-win industrial ecology.

Rapid increase in market share

During the Bali summit of the G20 leaders, the new energy vehicle Air ev launched by SAIC-GM-Wuling was used as the official vehicle of the summit, escorting green travel. According to calculations, during the 12-day summit guarantee period, 300 Air evs can reduce carbon emissions by about 33 tons in total.

Air ev is the first Chinese new energy vehicle in the Indonesian market. It officially rolled off the production line at the Indonesian Wuling Automobile Industrial Park in August this year. Since its launch, the order has exceeded 4,500 units, making it the new energy vehicle with the highest monthly sales in Indonesia. Indonesian Economic Coordinating Minister Airlanga Hartato said: "Wuling will bring the latest products and technologies to Indonesia, which will promote the transformation of the entire Indonesian auto industry chain in terms of product development, manufacturing, and marketing, and lead the Indonesian auto industry. A new concept of travel."

With longer cruising range, more vehicle models to choose from, and more novel intelligent networking and automatic driving functions, the market competitiveness of global new energy vehicles is constantly improving. According to statistics from the International Energy Agency, global sales of electric vehicles will reach 6.6 million in 2021, nearly doubling year-on-year, accounting for 10% of all new cars sold; 5 times, there are currently about 450 types of electric vehicles. According to the latest data from the CleanTechnica website, in September 2022, the number of global new energy vehicle registrations reached 1.04 million, a year-on-year increase of 51%. The market share is 13%.

China's new energy automobile industry has developed rapidly, and its production and sales have ranked first in the world for seven consecutive years. According to the latest data from the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in the first three quarters of 2022 will reach 4.717 million and 4.567 million respectively, a year-on-year increase of 120% and 110%, with a market share of 23.5%. During the same period, China exported 389,000 new energy vehicles, more than doubling year-on-year.

In the European market, due to adverse factors such as inflation, the energy crisis, and poor supply chains, auto sales fell by 14% in the first half of this year. However, sales of new energy vehicles during the same period were 1.12 million, an increase of 8.7% year-on-year, and the market performed well. In the U.S. market, EVs’ share of total vehicle sales increased from approximately 2.2% in the third quarter of 2020 to 6.1% in the third quarter of 2022. In South Korea, the export value of new energy vehicles in the third quarter increased by 42.3% year-on-year to US$4.047 billion; the import value increased by 29.3% year-on-year to US$1.791 billion, a record high.

Consulting firm McKinsey said: "In the past 10 years, the new energy vehicle industry has attracted more than 400 billion US dollars in investment. All these funds are aimed at companies and start-ups related to electric transportation, Internet vehicles and autonomous driving technologies." Reuters estimates, Investment in electric vehicles by major global automakers will reach $1.2 trillion by 2030.

Continued efforts to support policies

The report of the International Energy Agency pointed out that the rapid development of new energy vehicles has benefited from a variety of factors, among which the continuous policy support of various countries is the main reason. Under the urgent climate goals, many countries have issued policy signals to strengthen green transportation. Statistics show that in 2021, global related subsidies and public incentive funds will be about 30 billion U.S. dollars, doubling year-on-year.

The European Parliament passed the "Carbon Reduction 55" package not long ago, stipulating that the sale of new fuel vehicles, including hybrid vehicles, will be stopped in the EU starting from 2035. Norway plans to stop selling fuel vehicles in 2025, becoming the first country to completely ban the sale of fuel vehicles. The French government announced not long ago that it will increase subsidies for low-income families to purchase electric vehicles from 6,000 euros to 7,000 euros, and is also planning an electric vehicle rental subsidy plan. In September, the Korean Ministry of Industry, Trade and Energy held a roundtable meeting on the strategy of the automobile industry, and put forward a series of goals for the development of new energy vehicles, such as achieving the production of 3.3 million new energy vehicles by 2030, and investing more than 95 trillion yuan in the automobile industry from 2022 to 2026 South Korean won (1 yuan is about 185.03 won), and by 2030, 30,000 future automotive professionals will be trained.

Emerging market countries are also increasing efforts to promote new energy vehicles. The Thai government proposes that by 2025, all vehicles purchased by government agencies and public fleets should be zero-emission vehicles, and 15% of new locally produced vehicles will be zero-emission vehicles; by 2030, 30% of new vehicles will be zero-emission vehicles; by 2035 All new vehicles are zero-emission. The Indonesian government proposed to accelerate the process of electrification of official vehicles used by central and local government departments, and increase the number of electric vehicles in government official vehicles to more than 100,000 by the end of this year. The Ethiopian government announced that imported and assembled electric vehicles will be exempted from value-added tax, excise tax and surcharge, and will further reduce import duties.

The construction of new energy vehicle infrastructure in various countries is also continuing to follow up. As of August, China has built a total of 3.98 million charging piles and 1,625 battery swapping stations, forming the world's largest charging and swapping network. Before the end of this year, China plans to achieve full coverage of basic charging services in expressway service areas except for alpine and high-altitude areas; before the end of next year, qualified ordinary national and provincial trunk road service areas (stations) can provide basic charging services.

The British government released the "Electric Vehicle Infrastructure Strategy" in March, proposing to invest at least 1.6 billion pounds to expand the charging network, and plans to increase the number of electric vehicle charging stations by 10 times to 300,000 by 2030. The German government announced that it will continue to provide 5.5 billion euros in subsidies for the construction of electric vehicle charging infrastructure until 2024.

Strengthen international exchanges and cooperation

According to the latest "Global Electric Vehicle Outlook 2022" report released by the International Energy Agency, on the basis of adhering to the current climate policy, global electric vehicle sales will account for more than 30% of the total global vehicle sales in 2030. Despite the rosy market outlook, climate goals remain short. "We urgently need to introduce the most advanced low-carbon transportation solutions. Use the strength of regional and international cooperation to promote low-carbon transportation actions around the world." said Achim Steiner, Administrator of the United Nations Development Programme.

The analysis pointed out that as the global automobile industry accelerates its development toward electrification, intelligence, and networking, it needs cross-border integration with new technologies, new materials, electronic power, advanced manufacturing, and other fields, and it also requires countries to strengthen cooperation in technological innovation , Promote the coordinated development of the industrial chain and supply chain.

In April of this year, the first overseas factory of the Chinese company Ningde Times in Thuringia, Germany officially obtained a production license for 8 GWh of batteries. Not long ago, CATL announced that it will cooperate with Mercedes-Benz to build a second European factory in Hungary. HBIS Group signed an agreement with BMW Group, planning to introduce "green steel" technology with lower carbon emissions into the automotive field. The person in charge of the BMW Group said: "China is a hot spot to promote the ultra-large-scale application of emerging technologies. If a certain technology takes shape in China, it can be applied on a large scale in the world. We have already witnessed this in the development of new energy vehicles."

From Europe to the Middle East and Latin America, China's new energy vehicles stand out in more and more countries and regions, which not only promotes local energy conservation and emission reduction, but also provides opportunities for exchanges and mutual learning in the automotive industry. In Bogota, Colombia, by the end of this year, 1,480 BYD electric buses will be put into operation, which means that 94,300 tons of carbon dioxide emissions will be reduced each year, which is equivalent to the annual emissions of 42,000 private cars. Claudia Lopez, mayor of Bogota, said: "Chinese electric buses have made important contributions to the construction of a clean and sustainable Bogota and the modernization of local transportation."