Private purchase of new energy vehicles accounts for only 10%

In recent days, there are still many good news about the new energy auto sector. The first media reported that the “Twelfth Five-Year Plan for the Development of National Strategic and Emerging Industries” is pending for the State Council. This includes new energy vehicles. The seven major industrial plans have scheduled the timetable for the "September introduction in succession." Next, Beijing Municipality has issued the "Beijing Municipality to Accelerate the Cultivating and Development of Strategic Emerging Industries Implementation Opinions", which makes the industry excited. Beijing set a target of “purchasing private energy vehicles by 30,000 in 2012”.

However, the policy "window" seems to have failed to bring "undoubles" to the car companies, at least for the time being unable to inject the upward momentum into "new energy vehicle stocks."

Looking to the secondary market, FAW Cars and other former “bull stocks” are in a state of depression.

Today, the weakness of the A-shares has already caused the "new energy vehicle stocks" to be overwhelmed, and the leaking of houses has also suffered from rainy weather. The arrival of the medium-term report period has not only failed to relieve the dizzy "new energy vehicle stocks", but has actually worsened the situation. According to statistics released by China Automotive News, the company reported that in the first half of 2011, the net profit of Jianghuai Automobile attributable to the shareholders of listed companies increased by 2.2% year-on-year, and the net profit attributable to shareholders of listed companies increased by 17.48%. In the mid-term report period of 2010, this data of Jianghuai Automobile and the universal cash flow was 328.42% and 91.92%, respectively.

Private purchase of new energy vehicles accounted for only 10%

Not only is JAC Motors and Wanxiang Qianchao’s mid-year report results unsatisfactory, but BYD’s 2011 interim report, which was just listed, shows that its net profit attributable to shareholders of listed companies grew by -88.6269% year-on-year.

JAC, Wanxiang Qianchao, and BYD stated in the mid-year report that “after experiencing high-speed growth in 2009 and 2010, the growth rate of the automobile market has slowed down. On the one hand, the preferential policies for car purchase have been withdrawn, and the urban governance has been blocked. The unfavorable factors such as rising oil prices have dampened some auto demand, but the more important reason is the rational return based on the industry's own development rules. It is expected that the auto industry will enter a stage of steady growth in the future.”

Obviously, the downturn in the auto market is the main reason for the unsatisfactory performance of companies that rely on traditional cars to feed new energy vehicles. From January to June 2010, the national automobile production and sales were 8.9228 million and 901.158 million, respectively, an increase of 48.84% and 47.67% year-on-year respectively. From January to June 2011, the national automobile production and sales were 9.156 million and 9.3252 million, respectively. The year-on-year increase was 2.48% and 3.35% respectively.

However, in addition to traditional cars, new energy vehicles really do not bring anything to the company? Although there are no specific data available for the above-mentioned stocks, there are no data available for reference. However, the Ministry of Industry and Information Technology alone announced that “as of now, the total number of energy-saving and new energy vehicles in 25 pilot cities exceeds 10,000, including private purchases of more than 1,000 new energy vehicles”, it is not difficult to speculate that new energy vehicles are still only one blueprint.

The unified standard relies on the “Twelfth Five-Year Plan” to guide us. “We should not deny it because of the current situation of new energy vehicles, because in addition to the significance of energy and the environment, its significance to China’s auto industry is also very important. This is a country’s car. The opportunity for the industry to be able to compete with international giants at the same time.” A new energy vehicle expert from Putianhai Oil told the “Securities Daily” reporter. In his view, the real obstacle to the development of new energy vehicle industry is still technology.

“For example, the relationship between charging stations and new energy vehicles is the same as the relationship between gas stations and fuel vehicles, but currently there are only 100 charging stations and switching stations built in China and more than 4,500 charging piles. Compared with the petrol station network of over 60,000 Sinopec, not to mention the vast majority of them are designed for public transportation and taxis, and there is almost no public service, and the gap is as large as one can imagine. The standards for the storage and trading system are not uniform (charging, changing electricity, etc.), resulting in slow development and even waste of resources, said the expert.

The unification of standards and goals depends on the “12th Five-Year Plan” for the development of new energy vehicles. Fortunately, on August 19th, Zhejiang Yongkang proposed that during the “12th Five-Year Plan” period, the total investment of electric vehicle charging facilities in Yongkang reached 340 million yuan. It is planned to build a centralized charging station, 3 switching stations and 8 buildings. Distribution station, 120 charging piles and so on. In the industry's view, this initially built a network of electric "gas stations" for electric vehicles, which is of great significance in the country.