· Will the subsidy policy be cancelled? What if the new energy vehicle is not subsidized?

At the just-concluded National Conference, Premier Li Keqiang clearly stated in the government work report: "To promote new energy vehicles and control motor vehicle exhaust." This clearly defines the government's determination to control environmental pollution in the future, and also for the development of new energy vehicles. Depicted the blueprint. However, Wang Binggang, head of the National 863 “Energy Conservation and New Energy Vehicles” project supervision consulting expert group, recently revealed in an interview with the media that by 2020, all government subsidies for new energy vehicles may be cancelled. On the surface, this news is not good news for both car companies and consumers.
Many people know that because of the failure to mass production, the price of new energy vehicles is high; and because of the imperfect infrastructure such as charging, the use of new energy vehicles is inconvenient. Coupled with consumers' lack of understanding of new energy vehicles, there are still many questions about their safety and use. In order to bring new energy vehicles to market as soon as possible, the government subsidizes national and local governments when consumers buy new energy vehicles. At present, the purchase of pure electric cars can enjoy up to 100,000 government subsidies, and the maximum subsidy for purchasing electric buses can reach 1 million yuan. Even if the subsidy is so high, it has not broken the last line of defense of the new energy vehicle into the home.
According to relevant data, in 2014, China sold a total of 75,000 new energy vehicles, a year-on-year increase of 3.2 times. However, according to the goal of the “Energy Conservation and New Energy Vehicle Industry Development Plan (2012-2020)”, the target of 500,000 new energy vehicles will be achieved by 2015, and the target for 2020 is 2 million. From the current promotion situation, achieving the above goals is almost impossible. Under this circumstance, the Government still decided to reduce the subsidy for new energy vehicles purchases five years later. What is the intention?
In this regard, Wang Binggang said that the subsidy for new energy vehicles is to encourage car companies to increase research and development of new energy vehicles and encourage consumers to make purchases in the absence of breakthroughs in battery technology and high costs. But the current subsidies have changed. “When the hybrids had subsidies in the past few years, they were producing hybrid vehicles in one fell swoop; later, the hybrids were not covered by subsidies, and all the hybrid projects were all cut off. This practice of subsidies is very problematic. "No industry can rely on subsidies for long-term maintenance. If such a long-term subsidy has not yet emerged, there are not a few top-notch companies, which means that this road will not work." The promotion of new energy vehicles is well-intentioned.
For car companies, it is only a matter of five years, whether it is possible to break the technical bottleneck of the battery, successfully reduce costs, and create new energy car products that consumers need and like. In this process, it must be a big wave of sand, those speculative enterprises are destined to be eliminated, and enterprises that use government subsidies for new energy vehicle technology and industrial upgrading are likely to achieve cornering overtaking in the industry. It is simpler for consumers. It is not important to have government subsidies. As long as the quality is good, the price is reasonable, and the use is convenient, consumers will naturally open the door for new energy vehicles.

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