Electric Vehicle Industry and Policy Water Carriers
In 2017, the global new energy vehicle (NEV) market experienced a transformative year, marking both a watershed moment and a new beginning in the industry's development. The image above, sourced from Baidu Images, captures the essence of this dynamic shift.
As we begin this series, *China Science and Technology Economic Weekly* will explore the challenges and opportunities within China’s NEV sector, focusing on electrification, intelligence, and sharing. This initiative aims to provide a comprehensive view of how the industry is evolving and what lies ahead.
"The automobile revolution is underway," said Chen Qingtai, president of the Centenary Association, at the 2018 China Electric Vehicle Centennial Party Forum. He emphasized that the driving force behind this transformation is the rapid advancement of new energy and information technologies, alongside the urgent need to reduce carbon emissions and protect the environment.
Xu Heyi, chairman of Beijing Automotive Group, noted that 2017 was a pivotal year for NEVs, as technological barriers between new energy and traditional vehicles began to dissolve. Market recognition grew significantly, and the surge in production and sales boosted the entire NEV ecosystem.
Despite these achievements, China’s NEV market still faces challenges. It remains in an early stage of policy promotion, market acceptance, and long-term sustainability requires internal growth and innovation.
In 2017, China produced 794,000 NEVs and sold 777,000, making up 2.7% of total car output—three years in a row as the world leader. Personal consumption is rising rapidly, with over 75% of new energy passenger vehicles sold being for private use.
Technological advancements have also been significant. The average range of mainstream models now exceeds 300 km, matching global standards. Battery energy density has tripled since 2012, reaching 2 Wh/kg, while prices dropped to 1.2 yuan/Wh. Major companies are investing heavily in R&D, with over 8% of their budgets allocated to NEV development.
The charging infrastructure is expanding rapidly. By the end of 2017, 214,000 public charging piles had been installed nationwide, a 51% increase from the previous year. Private charging stations for new users exceeded 80%, ensuring better accessibility for electric vehicle owners.
The Ministry of Transport plans to promote 600,000 new energy vehicles in the transportation sector by 2020, with a target of 300,000 already met by the end of 2017.
Government policies continue to support the industry, with the National Development and Reform Commission emphasizing strategic planning and innovation. The Ministry of Transport is working on improving the safety and reliability of NEV services, while also enhancing policy frameworks and public awareness.
Qinghai Province is advancing lithium extraction technology, aiming to boost the supply of high-purity lithium for battery production. Meanwhile, Beijing Automotive Group aims to become a global leader in NEV technology and innovation.
Looking ahead, challenges remain, including the need for better charging infrastructure, improved policy systems, and breakthroughs in core technologies. Experts like Academician Ouyang Minggao stress the importance of reducing energy consumption through efficient design, motor efficiency, and intelligent charging solutions.
Future NEVs will be more than just electric—they will integrate smart driving and intelligent charging. With China’s advantages in the internet, photovoltaics, and EVs, the country is well-positioned to lead the next wave of automotive innovation.
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