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Bluebook of New Energy Car: 2017 is still the entry period for foreign company

On 3rd August, 2017 New Energy Car Blue Paper was officially released. It is estimated that in 2017, the domestic sales of new energy vehicles will be 75 million units, 20,000 units of new energy vehicles will be imported, the volume is expected to reach 770,000 units comprehensively. The following is an important summary of the Blue Paper.

1. The Blue Paper argues that the current focuses of investment approval are the research and development experience and capabilities, financial strength, sustainable development capacity of enterprises, it is expected that National Development and Reform Commission and the Ministry of Industry will raise the investment threshold of pure electric vehicles. At the same time, local governments will also strengthen the standardization of industrial development work. It is expected that the difficulty of granting new applications will be increased, but enterprises with technical and sustainable development capability will be able to enter.

2. The Blue Paper points out that new energy vehicles shall make breakthrough firstly on county and township market. The proportion of pure electric vehicle sales mainly decreased in large cities and medium-sized cities,which results in forming a further polarization of market area.

3. The Blue Paper points out that under the background of new energy, a number of new energy vehicles enterprises are emerging, and most of well-known enterprises own the background of major enterprises and Internet companies. As the development of new energy vehicles is uncertain, there is no need to limit the number of enterprises. And 2017 is still the entry period for these foreign companies, the products have not yet appeared, so that the incremental effect will not be reflected.

4. The due date of new energy vehicles purchase tax exemption is at the end of 2017, the Blue Paper indicates that in 2018 there is still a greater possibility of preferential policies for new energy vehicles to ensure that national support does not change. Seeing that the purchase tax preferential directory and the new energy vehicles subsidy directory are led by the Ministry of Industry, the two directories may be unified in order to reduce the workload of enterprises to declare the directories.

5. The Blue Paper points out that on the basis of ensuring the steady growth of new energy vehicles market, the policy may be adjusted according the characteristics of the new stage of industry. Government departments will continue to study and improve the relevant policies, it is expected that important adjustment policies for investment, taxation, subsidies, industry management will be gradually introduced next year.

6. Before 2020, subsidy policies for new energy vehicles will not be easily withdrew, but the policies need to be gradually improved. On the one hand, with the upgrading of industrial technology, governments should continue to study how to improve the entry threshold of enterprises and products, and strengthen the on-line supervision of new energy vehicles utilization. On the other hand, in order to alleviate the pressure on funds and avoid the policy obstruct the industry development, policies such as “30,000 km” will be adjusted, liquidation frequency will also increase.

7. In addition, The Blue Paper suggests relevant departments should promote the development of intelligent network car through modifying the laws and regulations, improving technology researches, promoting and demonstrating and strengthening coordination. At the same time, relevant departments should strengthen the coordination and interaction between automotive industry and transportation industry, information industry and other departments.