The same rights for oil and electric vehicles are mentioned again, but the sales of Toyota and Honda plummeted, which triggered GAC's incompetent rage

According to the China Passenger Car Association, China's wholesale sales of new energy passenger vehicles in May were about 910,000 units, up 35% year-on-year and 16% month-on-month. This is the performance in the off-season, and the growth is expected to accelerate in the second half of the year.

The "2024 New Energy Vehicle Consumption Insight Report" recently released by the China Association of Automobile Manufacturers shows that the domestic new energy vehicle penetration rate will be close to 40% this year and will reach about 90% in 2035.

The development speed of China's new energy vehicles has far exceeded previous expectations. Some major international brands are afraid of this. On the one hand, they lobby politicians to discredit China's new energy vehicles for "overcapacity" and on the other hand, they set up various trade barriers against China's new energy vehicles.

In China, however, the "equal rights for oil and electricity" policy has stood in opposition to the new energy industry in another way. At the 2024 China Automotive Chongqing Forum held recently, Zeng Qinghong, chairman of GAC Group, proposed an initiative: when the proportion of pure electric new energy vehicles exceeds 50%, government departments should study and promote the "equal rights for oil and electricity" policy.

The concept of equal rights for oil and electricity has been frequently mentioned in recent years. Why is there such a call? New energy vehicles are a new thing. In order to promote the development of new energy vehicles, relevant state departments have formulated various special policies for new energy vehicles from the beginning.

These policies include: exclusive new energy license plates, exemption from vehicle and vessel taxes, exemption from purchase taxes, no traffic restrictions, no purchase restrictions, higher replacement subsidies, high financial subsidies, etc. Some local governments have also formulated measures such as parking fee reductions and allowing the use of bus lanes during peak hours.

It can be said that these policies played a crucial role in the early development of new energy vehicles. Without these policies, China's new energy vehicles, which were still in their infancy, would not have been able to thrive. This is actually not incomprehensible - no one would let a newborn baby race with an athlete.

In fact, it is not just China. The United States, the European Union and other major new energy vehicle centers also have similar policies; moreover, it is not just new energy vehicles. Most emerging industries in the world are weak from the beginning. All countries will formulate various incentives and support measures. Subsidizing strategic industries is a universal rule around the world.

To give the simplest example, the Inflation Reduction Act and the Chips and Science Act signed by US President Biden contain a large number of clauses to subsidize chip manufacturing and electric vehicles. Different rights for oil and electricity are a common phenomenon, not a "Chinese characteristic" or "unfair".

For example, China has been expanding highways, promoting urban and rural road construction, and promoting the popularization of gas stations in various places over the past few decades. In fact, it is also "taking care" of fuel vehicles and promoting the popularization of fuel vehicles. At that time, why didn't GAC question "the different rights of cars and animal-powered vehicles and rickshaws"? If they really want to pursue "equal rights", they should allow horse-drawn carriages, ox-drawn carts and donkey-drawn carts to go on highways.

Those who call for equal rights for oil and electric vehicles are mainly traditional manufacturers who have not reaped the benefits in the field of new energy vehicles. The subtext of GAC's Zeng Qinghong is this: most of GAC's sales are generated by the two joint ventures of GAC Toyota and GAC Honda, and these two joint ventures are not very good in new energy, and they are the type that cannot gain market share even at a fire sale. Preferential treatment of new energy vehicles in policy is to hurt the interests of Toyota and Honda; and the interests of Toyota and Honda are GAC's own interests.

In May 2024, GAC Group's sales volume was 156,518 vehicles, a sharp drop of 25.33% year-on-year; among them, GAC Toyota's sales volume fell by more than 10% year-on-year, and GAC Honda's sales volume fell by more than 30% year-on-year. The sales volume can explain why GAC is so panic about the development of new energy vehicles. Foreign manufacturers accuse China of "overcapacity" in new energy vehicles, and these domestic joint venture manufacturers accuse "different rights for oil and electricity", which actually comes from the same motivation.

From an objective perspective, the problem of unequal rights for oil and electricity does exist, and there is a great possibility that this policy will be canceled. The reason is very simple. The purpose of China's relevant departments in formulating these policies is to promote the development of new energy vehicles. In April, the domestic new energy vehicle penetration rate has reached 50%. When new energy vehicles occupy a dominant position, the purpose of these policies will be achieved, and there will be no need to "favor" new energy vehicles. At that time, all you can see are new energy models, and even the name "new energy" will disappear.

In fact, manufacturers like GAC that rely on joint venture business for their survival have forgotten a basic fact: whether it is financial subsidies or priority travel rights, they are the same for all major manufacturers; domestic, imported, joint venture, no matter what kind of manufacturer, as long as you can produce new energy vehicles, you can enjoy preferential treatment.

Under the same policy conditions, why can some manufacturers become the world's number one, while others struggle and can only sell a few new energy vehicles a year? It's still the classic line: being bad is the original sin. The rise of domestic new energy vehicles relies on technological progress and the continuous improvement of product performance. No matter how much you find fault, you can't change this basic fact.

With the rapid development of domestic new energy vehicles, the proposal of "equal rights for oil and electricity" is more of a rage of impotence. The policy is there, and everyone can enjoy it. If some manufacturers do not make good use of it and cannot enjoy the dividends of the policy, it is because of their own ability problems, not the policy problems.

Traditional manufacturers now have two options: first, to produce powerful enough fuel vehicles to win back consumers; second, to produce new energy vehicles that are stronger than their competitors so that they can also enjoy policy dividends. If you can't do either, then don't even mention "equal rights for oil and electricity". If you're not good at it, just practice more!

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.