Low range electric vehicles need to be "cool"?
2024-05-15
Nowadays, a large number of electric vehicle models with a range of less than 150 kilometers are facing delisting, while low range electric vehicle models with a range of 150-200 kilometers are facing heavy pressure from subsidies and declining sales. The reporter noticed that in mid June, new energy subsidies were updated with new policies. The Ministry of Finance, in conjunction with three ministries, has issued a notice on adjusting and improving the financial subsidy policy for the promotion and application of new energy vehicles. The new policy clearly defines the mileage subsidy standards for new energy passenger vehicles, and will provide "proportional subsidy measures" for new energy vehicle models on the market based on their range and battery density. That is to say, owning long range, high energy density batteries will receive high subsidies, while conversely, it will decrease or even decrease to zero.
Market Status: Low Range Electric Vehicles Surviving in the Gap
Recently, reporters conducted a survey on some models in the market with a range of less than 200km. The LITE of ARCFOX, a subsidiary of BAIC New Energy, was launched in September 2017 with a range of only 150km. The LITE without subsidies has a starting price of 152800 yuan. Faced with the same problem is the commonly seen Zhidou D2 on the streets of Guangzhou, with 2017 and 2018 models currently on sale. The 2017 model still follows the previous subsidy standards, while the 2018 model has been implemented according to the new policy.
The dealer told reporters that in order to make up for the difference in price before and after the subsidy, the store has launched discounts. However, the reporter noticed that strictly speaking, LITE and Zhidou D2 are AOO level micro cars, which are considered expensive in the fuel car market for 50000 yuan. Under the new policy, subsidies have been reduced or reduced, resulting in a lack of attractiveness in the prices of these AOO level electric vehicle models. The Zotye E200, which has a range of less than 200km, is even more awkward. The original suggested retail price is nearly 200000 yuan, which is not well received.
The reporter learned from car companies such as Jianghuai, Zotye, and Dianka that some manufacturers generally take measures such as stopping sales, lowering prices, or upgrading the range configuration of existing models.
New policy orientation: Subsidies shift towards a "merit based system"
The reporter noticed that according to the subsidy policy for new energy vehicles, pure electric vehicles with a range of less than 150 kilometers will no longer be eligible for subsidies; For pure electric vehicle models with a range of 150-300 kilometers, subsidies will be reduced by 20% to 50% respectively; Subsidies for vehicles with a range of 300-400 kilometers and above will increase by 2% to 14%. The new policy not only raises the technical threshold for range, but also refines the technical indicators and levels of battery energy density and energy consumption subsidies. Specifically, the subsidy amount for a single vehicle is equal to the range subsidy standard x the energy density adjustment coefficient of the battery system x the vehicle energy consumption adjustment coefficient.
For example, the Chery QQ3EV, with a range of 120 kilometers, received a subsidy of 20000 yuan in 2017 and will no longer enjoy the subsidy policy after the implementation of the new policy; For the BYD Qin EV450, with a range of over 400 kilometers, the subsidy in 2017 was 44000 yuan. Now, according to the new policy, the energy density coefficient is calculated at 1.1 times, and the energy consumption adjustment coefficient is calculated at 1 time, which is 55000 yuan, receiving a higher subsidy than in the past.
[Self rescue measures for automotive companies]
1. Discontinue production of low range vehicle models,
Only build models over 300km
Faced with the new policy, there are both those who are in a hurry and those who are fully prepared for it. During the investigation by reporters, it was found that some car manufacturers may simply focus on producing high range models in the future. For example, Jianghuai Automobile stated that it has stopped producing electric vehicles with low range, and has completed product technology upgrades. It has developed multiple models with a range of over 300 kilometers to respond to policy changes and take the lead in mass production. Wang Guangyu, Deputy General Manager of Jianghuai Passenger Car Marketing Company, said that Jianghuai iEV, iEV6E, and iEV7 models with a range of less than 200km have already cleared their inventory during the transition period before the implementation of the new policy.
2. Out of pocket subsidies
The reporter noticed that in order to continue receiving subsidies after the implementation of the new policy, there will also be issues with the re application process. Therefore, for models with low sales, some manufacturers may choose low prices or self pay subsidies and promotions to save time. At local car dealerships, the reporter noticed that subsidies for vehicles such as Chery eQ and Changan Benben EV have been reduced from 36000 yuan to 15000 yuan. But the whole car factory has also provided preferential subsidies at their own expense, so the final prices of these models are still the same as last year.
3. Repackage the old model,
Increase range
For car companies such as BAIC and Zotye, some low range electric vehicles have once laid a solid foundation, so it is better to stop production directly and repackage them. Zheng Gang, General Manager of Beijing New Energy Automobile Co., Ltd., told reporters that BAIC New Energy has launched more than ten products in five major series, including large, medium, medium, medium, and low, with a range of 200-400 kilometers. However, as the "sales representative" of the EC series, the EC180 and EC200 have a comprehensive range of 156 kilometers and 162 kilometers, respectively. Currently, the dealer showroom has removed the old EC model. However, BAIC New Energy has denied the claim that EC products have been "discontinued" and stated that it will launch a version with a higher range in the future, increasing the range to 261 kilometers; As for the LITE mentioned earlier, it will also significantly increase the range of the current model by 80%, reaching nearly 270km. The E200 is Zotye's flagship model, with a cumulative sales volume of 16751 units in 2017. Now that they can no longer receive subsidies, Zotye has decided to "slash" the old model and then launch a new E200, which will have a comprehensive range of 300km.
The eQ1 Little Ant 300 model launched by Chery New Energy adopts an integrated body battery pack design structure, with a range of up to 251km, meeting the support standards of energy subsidy policies or above.
4. Shared rental of "popular cars"
What about electric vehicles that have already been produced according to plan and cannot be sold in time? Ruzhidou plans to increase the energy density of its battery system to cope with the new policy, but its future main models are mostly focused on a range of 150-300 kilometers. The head of a dealer in Panyu, Guangzhou, who purchased thousands of Zhidou electric vehicles, told reporters that there are indeed many old Zhidou models with lower range in the store, and the current processing method will prioritize changing the models to shared leasing.
The reporter noticed that the company has already established a shared rental operation company, with vehicles mainly serving users in Panyu and Nansha, providing short distance travel needs within 200km.
The reporter noticed on multiple shared rental platforms that currently, most of the available electric vehicles have a range of 200-250km.
The staff of EVCard told reporters that the average usage mileage of current rental users is between 100km and 200km, and low range electric vehicles can meet the commuting needs of urban users in the rental market.
Market observation: Technology enhances consumer benefits
With the gradual deepening of electrification and the improvement of technological level, electric vehicles have entered a high range era with a range of 300-400 kilometers. In the past, manufacturers densely launched many low range models with low prices. In addition to rapidly expanding and occupying the market, the main purpose was to strive for more subsidies. After the implementation of the new policy, models with a range of 150 kilometers will soon be delisted. Due to the lack of subsidies, sales in the private car market for vehicles below 200 kilometers are basically "cool", which will also make car companies shift to electric vehicles with high range.
According to the new regulations, in addition to meeting the range requirements, the existence of energy density adjustment coefficients for battery systems and vehicle energy consumption adjustment coefficients has prompted car manufacturers to invest a lot of energy in battery technology and energy consumption, thereby continuously advancing battery technology and energy-saving technology. So, from a long-term perspective, the implementation of the new policy is a good thing for the travel costs of ordinary consumers.
Market Status: Low Range Electric Vehicles Surviving in the Gap
Recently, reporters conducted a survey on some models in the market with a range of less than 200km. The LITE of ARCFOX, a subsidiary of BAIC New Energy, was launched in September 2017 with a range of only 150km. The LITE without subsidies has a starting price of 152800 yuan. Faced with the same problem is the commonly seen Zhidou D2 on the streets of Guangzhou, with 2017 and 2018 models currently on sale. The 2017 model still follows the previous subsidy standards, while the 2018 model has been implemented according to the new policy.
The dealer told reporters that in order to make up for the difference in price before and after the subsidy, the store has launched discounts. However, the reporter noticed that strictly speaking, LITE and Zhidou D2 are AOO level micro cars, which are considered expensive in the fuel car market for 50000 yuan. Under the new policy, subsidies have been reduced or reduced, resulting in a lack of attractiveness in the prices of these AOO level electric vehicle models. The Zotye E200, which has a range of less than 200km, is even more awkward. The original suggested retail price is nearly 200000 yuan, which is not well received.
The reporter learned from car companies such as Jianghuai, Zotye, and Dianka that some manufacturers generally take measures such as stopping sales, lowering prices, or upgrading the range configuration of existing models.
New policy orientation: Subsidies shift towards a "merit based system"
The reporter noticed that according to the subsidy policy for new energy vehicles, pure electric vehicles with a range of less than 150 kilometers will no longer be eligible for subsidies; For pure electric vehicle models with a range of 150-300 kilometers, subsidies will be reduced by 20% to 50% respectively; Subsidies for vehicles with a range of 300-400 kilometers and above will increase by 2% to 14%. The new policy not only raises the technical threshold for range, but also refines the technical indicators and levels of battery energy density and energy consumption subsidies. Specifically, the subsidy amount for a single vehicle is equal to the range subsidy standard x the energy density adjustment coefficient of the battery system x the vehicle energy consumption adjustment coefficient.
For example, the Chery QQ3EV, with a range of 120 kilometers, received a subsidy of 20000 yuan in 2017 and will no longer enjoy the subsidy policy after the implementation of the new policy; For the BYD Qin EV450, with a range of over 400 kilometers, the subsidy in 2017 was 44000 yuan. Now, according to the new policy, the energy density coefficient is calculated at 1.1 times, and the energy consumption adjustment coefficient is calculated at 1 time, which is 55000 yuan, receiving a higher subsidy than in the past.
[Self rescue measures for automotive companies]
1. Discontinue production of low range vehicle models,
Only build models over 300km
Faced with the new policy, there are both those who are in a hurry and those who are fully prepared for it. During the investigation by reporters, it was found that some car manufacturers may simply focus on producing high range models in the future. For example, Jianghuai Automobile stated that it has stopped producing electric vehicles with low range, and has completed product technology upgrades. It has developed multiple models with a range of over 300 kilometers to respond to policy changes and take the lead in mass production. Wang Guangyu, Deputy General Manager of Jianghuai Passenger Car Marketing Company, said that Jianghuai iEV, iEV6E, and iEV7 models with a range of less than 200km have already cleared their inventory during the transition period before the implementation of the new policy.
2. Out of pocket subsidies
The reporter noticed that in order to continue receiving subsidies after the implementation of the new policy, there will also be issues with the re application process. Therefore, for models with low sales, some manufacturers may choose low prices or self pay subsidies and promotions to save time. At local car dealerships, the reporter noticed that subsidies for vehicles such as Chery eQ and Changan Benben EV have been reduced from 36000 yuan to 15000 yuan. But the whole car factory has also provided preferential subsidies at their own expense, so the final prices of these models are still the same as last year.
3. Repackage the old model,
Increase range
For car companies such as BAIC and Zotye, some low range electric vehicles have once laid a solid foundation, so it is better to stop production directly and repackage them. Zheng Gang, General Manager of Beijing New Energy Automobile Co., Ltd., told reporters that BAIC New Energy has launched more than ten products in five major series, including large, medium, medium, medium, and low, with a range of 200-400 kilometers. However, as the "sales representative" of the EC series, the EC180 and EC200 have a comprehensive range of 156 kilometers and 162 kilometers, respectively. Currently, the dealer showroom has removed the old EC model. However, BAIC New Energy has denied the claim that EC products have been "discontinued" and stated that it will launch a version with a higher range in the future, increasing the range to 261 kilometers; As for the LITE mentioned earlier, it will also significantly increase the range of the current model by 80%, reaching nearly 270km. The E200 is Zotye's flagship model, with a cumulative sales volume of 16751 units in 2017. Now that they can no longer receive subsidies, Zotye has decided to "slash" the old model and then launch a new E200, which will have a comprehensive range of 300km.
The eQ1 Little Ant 300 model launched by Chery New Energy adopts an integrated body battery pack design structure, with a range of up to 251km, meeting the support standards of energy subsidy policies or above.
4. Shared rental of "popular cars"
What about electric vehicles that have already been produced according to plan and cannot be sold in time? Ruzhidou plans to increase the energy density of its battery system to cope with the new policy, but its future main models are mostly focused on a range of 150-300 kilometers. The head of a dealer in Panyu, Guangzhou, who purchased thousands of Zhidou electric vehicles, told reporters that there are indeed many old Zhidou models with lower range in the store, and the current processing method will prioritize changing the models to shared leasing.
The reporter noticed that the company has already established a shared rental operation company, with vehicles mainly serving users in Panyu and Nansha, providing short distance travel needs within 200km.
The reporter noticed on multiple shared rental platforms that currently, most of the available electric vehicles have a range of 200-250km.
The staff of EVCard told reporters that the average usage mileage of current rental users is between 100km and 200km, and low range electric vehicles can meet the commuting needs of urban users in the rental market.
Market observation: Technology enhances consumer benefits
With the gradual deepening of electrification and the improvement of technological level, electric vehicles have entered a high range era with a range of 300-400 kilometers. In the past, manufacturers densely launched many low range models with low prices. In addition to rapidly expanding and occupying the market, the main purpose was to strive for more subsidies. After the implementation of the new policy, models with a range of 150 kilometers will soon be delisted. Due to the lack of subsidies, sales in the private car market for vehicles below 200 kilometers are basically "cool", which will also make car companies shift to electric vehicles with high range.
According to the new regulations, in addition to meeting the range requirements, the existence of energy density adjustment coefficients for battery systems and vehicle energy consumption adjustment coefficients has prompted car manufacturers to invest a lot of energy in battery technology and energy consumption, thereby continuously advancing battery technology and energy-saving technology. So, from a long-term perspective, the implementation of the new policy is a good thing for the travel costs of ordinary consumers.
