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According to the statistics of the Passenger Car Association, the Chinese car market in 2018 saw its first year-on-year decline after 28 consecutive years of growth, with production and sales falling by 4.2% and 2.8% respectively. However, the field of new energy vehicles continued to maintain a high growth momentum, breaking through one million sales throughout the year, with production and sales of 1.27 million and 1.256 million, respectively, up 59.9% and 61.7% year on year, and maintained a high growth trend.

So, what is the reason that led to the decline of the automobile market for 28 years from 1990 to 2018? Will it get rid of the downturn of the automobile market today when new energy vehicles are developing rapidly?

In view of the current development process of the new energy vehicle industry, there are still more or less deficiencies, which have led to consumers' concern or refusal to buy. Let's consider a situation where the number of car buyers remains unchanged, consumers need to face the question of who should choose between traditional fuel vehicles and new energy vehicles. However, in terms of car selection, The orientation of national policies has become one of the more important factors.

On the other hand, the oil price is rising rapidly. No matter how much the oil price rises or falls, consumers will feel that the oil price is more expensive than before, so many consumers will turn their attention to government supported new energy vehicles.

In addition, with the introduction of the most stringent national six standards in history, all major car manufacturers have introduced fuel models that meet the emission standards, which seems to make many consumers waver in their choices, and to some extent, affect the changes in the vehicle market.

Exhaust emission exceeds the standard

At the same time, in the environment of energy conservation and emission reduction, global auto manufacturers are forced by the pressure of current policies to follow the situation and shout vigorously to develop new energy vehicles, and many auto companies have announced to stop selling fuel vehicles.

For example, Volkswagen, which has been selling very well in China, also announced that it would stop selling fuel engine models in 2026, and Mercedes Benz earlier announced that it would stop selling fuel engines in 2022. From the perspective of the planning of major auto enterprises for the future development of the industry, their actions will also become one of the major reasons that affect consumers' choices.

Also, at present, the license plate and traffic restriction policies in the first and second tier cities also have a very serious impact on the automobile market. On the other hand, the purchase tax halving policy in the previous two years has overdrawn part of the market demand in advance, leading to the current fuel vehicle market still has a fall back effect under the consumption overdraft in advance.

Choose your own car

Fortunately, many first tier and second tier cities will slow down the implementation of the National Six Standards in 2019, and the import tariff problem will be further solved. From the perspective of the short-term situation in the future, traditional fuel vehicles should have a warming trend. The era of consumption oriented growth has passed. For the automotive industry, the policies issued by the government have been paid attention to by consumers. Therefore, fuel vehicles may not return to the situation of the year, while the sales of new energy vehicles will continue to rise.

In order to implement the energy conservation and emission reduction targets more quickly, the government has put pressure on fuel vehicles everywhere, resulting in a decline in sales of traditional fuel vehicles. On the other hand, the new energy automobile industry vigorously promoted by the government is quite different.

The brilliant new energy vehicle market can be said to be the result of favorable policy orientation. Even though there was a subsidy recession in the middle of the year, which made people worried at the moment, the policy then set a transition period for the reduction of subsidies, allowing car enterprises to have a reasonable time to re arrange and calibrate new products, without causing too much pressure on the new energy vehicle market.

It is worth mentioning that the government has introduced a new policy on subsidies for new energy vehicles and a subsidy standard to promote the improvement of endurance mileage, which further breaks through the technology of new energy vehicle products in endurance mileage. When the mileage anxiety no longer bothers consumers, the new energy vehicle market will continue to rise.

New energy vehicle

At the same time, driven by the dual credit policy, the fuel vehicle market has become very bleak, while new energy vehicles have achieved rapid growth. Now that more new car making forces have successfully completed delivery, the overall market of new energy vehicles will continue to show explosive growth.

In addition, with regard to the backward construction of supporting facilities in the post market, the government has also rapidly introduced policies to upgrade and improve the supporting facilities to meet the charging needs of one car and one pile. In addition, with the gradual standardization of the market, new energy vehicles are naturally becoming more and more popular.

On the one hand, fuel vehicles are declining under the pressure of policy, and on the other hand, new energy vehicles are rising strongly under the promotion of the government. It is undeniable that new energy vehicles are continuing to make great strides forward.

As far as the past 2018 is concerned, it will become a turning point for China's automobile industry. Whether it is the first decline in the domestic automobile market in 28 years or the sales volume of new energy vehicles has broken the one million mark, it is a witness to the change of China's automobile new era. Even though the subsidy for new energy vehicles is not as strong as before, from the perspective of government guidance, new energy vehicles will certainly become the preferred model for consumers in the future.

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