China will implement the new energy vehicle (NEV) popularization program and upgrade the industrialization level for electric car manufacturing in the next five years, according to a proposal unveiled Tuesday.
The Communist Party of China (CPC) Central Committee's "Proposal on Formulating the Thirteenth Five-year Plan (2016-2020) on National Economic and Social Development," was adopted at the Fifth Plenary Session of the 18th CPC Central Committee, which ended Oct. 29.
According to the proposal, popularizing NEV industry will be stated in China's 13th Five-Year Plan. Analysts believe that will guarantee the development of China's NEV industry in a long-run.
Chen Dongsheng, secretary-general of a multimedia alliance under the National Development and Reform Commission, said a major task of the 13th Five-Year Plan is to maintain the sound operation of NEV industry in the circumstance of fewer subsidies or no subsidy.
Ouyang Minggao, an NEV expert with Tsinghua University, said the NEV development in the 13th Five-Year Plan period will focus on innovation in power battery and battery management, electric motor driving and power electronics, electric car intellectualization, fuel-cell power system, plug-in hybrid power system and pure electric power system.
By now, 12 Chinese ministries have issued more than 20 favorable policies, including the NEV subsidy scheme, the purchase tax exemption, the reduction of vehicle and vessel tax, the national science and technology major projects, the industrial technology innovation program, the national award for charging facility construction, the preferential electricity prices for NEV battery charging and swap, the administrative rules on new pure electric passenger car enterprises, the technical standard system for electric vehicles, and the financial supports for NEV popularization and application in 2016-2020.
Thanks to policy supports, China's NEV sales skyrocketed 2.3-fold in the first three quarters of this year and hit a record high in September. In September, the NEV output doubled from that for the same period of 2014, to 32,800 units.
Experts believe China's NEV output and sales will reach 350,000-370,000 units by the end of this year, and about 500,000 units by end-2016. As the United States saw a decline in NEV sales this year, China will rank the first by NEV output and sales in the world, said Wu Hui, an analyst with a research center under the Ministry of Industry and Information Technology.
The booming NEV sales benefited the upstream and downstream enterprises, helping relevant listed companies to maintain high-speed growth this year.
According to the financial reports, about 70 percent NEV-relevant listed companies achieved positive business growth in the first three quarters of this year.
BYD, China's leading NEV maker, forecasts that its net profit for the whole year of 2015 will skyrocket 435.15-481.28 percent year on year, to 2.32-2.52 billion yuan.