Wilson: New Energy Vehicle Industry Monthly Report in June 2019

1. Overall performance of the new energy passenger vehicle market

With subsidies set to be reduced in June, manufacturers stepped up their promotional efforts to stimulate demand, resulting in a significant increase in new energy market sales in June both month-on-month and year-on-year, with the overall market sales reaching nearly 200,000 vehicles per month.
In June, pure electric vehicle sales increased by 260.6% year-on-year to 154,000 units; plug-in hybrid vehicle sales increased by 117.2% year-on-year to 46,000 units.

2. Analysis of pure electric vehicle market segments

In June, A00-class sales rebounded, rising from 11.1% in May to 16.5%; the market share of A-class cars exceeded half of the overall pure electric market, reaching 51.7%.

3. Analysis of plug-in hybrid market segments

In June, due to the sales growth of Passat PHEV and Kia K5 PHEV, the market share of B-class sedans surpassed that of A-class sedans, with the share of B-class sedans reaching 24%; in the plug-in hybrid SUV market, the market shares of A-class SUV and C-class SUV both increased.
In terms of cumulative market share, the top three markets are A-class sedans, A-class SUVs and B-class SUVs, with shares of 24.8%, 21.9% and 21.9% respectively; SUVs and sedans are evenly matched.

4. Transaction price trend of new energy passenger vehicles

As manufacturers stepped up their promotional efforts at the end of the transition period, the overall market transaction price fell significantly in June.
In June, the transaction price of the pure electric market decreased by 1.5% month-on-month, and was 1.7% higher than the same period last year; the transaction price of the plug-in hybrid market decreased by 2.9% month-on-month, and was 6.6% lower than the same period last year.

Industry News

1. Shanghai builds hydrogen refueling stations for all-scenario applications of hydrogen fuel cell vehicles

On June 5, Yilan Energy, Shanghai Chemical Industry Zone and SAIC Motor jointly held a fuel cell vehicle full-scenario application and hydrogen station inauguration ceremony at the Chemical Industry Zone hydrogen station, marking the completion of the world's largest and highest-level hydrogen station and its upcoming operation.

2. Toyota joins hands with CATL and other battery manufacturers to accelerate the process of new energy

On June 7, Japan's Toyota Motor Corporation held a press conference in Tokyo, announcing that it will cooperate with automotive battery manufacturers such as CATL, BYD, and Toshiba. Toyota's move will ensure the sustainability of production capacity and accelerate the development of new energy vehicles.

3. Kia and Human Horizons cooperate to create high-quality new energy smart cars

On June 16, Human Horizons and Dongfeng Yueda Kia jointly announced that they would seize the important historical opportunity of the automotive industry's transformation and upgrading towards electrification and intelligence, and carry out multi-faceted cooperation in the fields of new energy vehicle production and manufacturing, supply chain, etc.

Industry Policy

1. Three ministries: Cancel the current purchase restrictions on new energy vehicles

On June 6, the National Development and Reform Commission and three other ministries jointly issued the "Implementation Plan for Promoting the Update and Upgrade of Key Consumer Goods and Smooth Resource Recycling (2019-2020)", pointing out that the consumption and use of new energy vehicles should be vigorously promoted; local governments should not implement current policies or purchase restrictions on new energy vehicles, and those that have been implemented should be canceled; local governments are encouraged to support car-free families in purchasing their first household new energy vehicle.

2. Ministry of Finance: New energy vehicles will be exempt from purchase tax before the end of 2020

On June 28, the Ministry of Finance and the State Administration of Taxation jointly issued the "Announcement on the Continued Implementation of the Vehicle Purchase Tax Preferential Policy", which clearly stated that from January 1, 2018 to December 31, 2020, vehicle purchase tax will be exempted for the purchase of new energy vehicles.

3. Chongqing: Financial subsidy policy for the promotion and application of new energy vehicles

On June 1, Chongqing issued the "Notice on Issuing Chongqing's 2019 Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles". The notice mentioned that subsidies will be provided in four areas: purchase, construction of charging facilities, charging costs, and construction of hydrogen refueling stations.

4. Beijing and Chengdu: Cancellation of local subsidies for new energy

In order to implement the requirements of the "Notice on Further Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles" (Finance and Construction [2019] No. 138) issued by the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission, Chengdu and Beijing have successively issued notices, clarifying that from June 26, the municipal financial subsidies for pure electric vehicles will be cancelled.