Can It Replace The Old Man's Music? How Much Rural Market Can New Energy Vehicle Companies Go To The Countryside To Leverage?

How big the market will new energy vehicles go to the countryside? A few days ago, the China Association of Automobile Manufacturers (hereinafter referred to as the China Association of Automobile Manufacturers) issued the "Notice on the Application of New Energy Vehicles to the Countryside in 2022" (hereinafter referred to as the "Notice"). New energy vehicles with characteristics of rural consumption are included in the catalogue of models going to the countryside. Car companies need to make a unified declaration for the models participating in going to the countryside. The deadline for declaration is March 10, 2022.

Fu Bingfeng, vice president and secretary general of the China Automobile Association, said, "Currently is a critical period for the promotion of new energy vehicles. It is very important to sink into the fourth and fifth tier markets and help rural consumption upgrade. This is an incremental market."

According to data from the China Automobile Association, the cumulative sales of new energy vehicles going to the countryside in 2021 will be 1.068 million, a year-on-year increase of 169.2 percent . In addition, among the 66 models of new energy vehicles going to the countryside in 2021, the vehicles are mainly small and micro vehicles with a price of less than 100,000 yuan and a cruising range of less than 300 kilometers. It is generally believed in the industry that small and micro models of new energy vehicles going to the countryside will replace low-speed electric vehicles such as "Old Man Le", and have good prospects in the rural market.

Sinking may be normalized, replacing rural "old man's music"

Yn ystod y blynyddoedd diwethaf, mae twf incwm a gwariant defnydd trigolion gwledig ledled y wlad wedi bod yn gyflymach na thrigolion trefol, ac mae eu galw am deithio â modur yn frys, ond mae cyfradd treiddiad cerbydau cyffredinol yn isel. Mae cyfradd trydaneiddio cerbydau a ddefnyddir gan drigolion gwledig yn llai nag 1 y cant , sef dim ond 1/3 o gyfradd trigolion trefol , ac mae digon o le ar gyfer twf .

From the perspective of the industry, my country's automobile growth area has begun to expand and shift from the east to the central and western regions, from first- and second-tier cities to third- and fourth-tier cities, and from cities to rural areas. According to the "Research on Electric Vehicle Travel in China's Rural Areas" released by the China Electric Vehicle Association, the number of vehicles per thousand people in rural areas in my country will reach 159 by 2030, with a total number of 70.01 million vehicles; this figure also includes rural areas. Consumers just need to buy for the first time, including the replacement demand for low-speed electric vehicles. The industry believes that the electrification potential of the rural market is huge.

From the perspective of the demand of third- and fourth-tier cities and rural markets, the travel radius of consumers is small, and the average daily travel distance of more than 80 percent of households is less than 50 kilometers. New energy vehicles with short and medium-range battery life can meet the needs of mainstream consumer groups; In terms of price range, models with a cruising range of 120 kilometers to 400 kilometers and prices between 30,000 and 80,000 yuan are more in line with market demand; from the perspective of the rural market as a whole, due to restrictions on driving licenses and licenses, the common name is "Old Man". "Le"'s low-speed electric vehicles are more popular in rural markets.

Felly, ymhlith y 66 model o gerbydau ynni newydd sy'n mynd i gefn gwlad yn 2021, mae'r cerbydau'n bennaf yn geir bach a micro gyda phris o lai na 100, 000 yuan ac ystod fordeithio o lai na 300 cilomedr.

Mae Xu Haidong, dirprwy brif beiriannydd Cymdeithas Gweithgynhyrchwyr Automobile Tsieina, yn credu bod cerbydau ynni newydd yn well o ran ansawdd a rheolaeth, gyda chysur a diogelwch uwch, a chost isel y dosbarth A00, sef yn bennaf yn y farchnad wledig, hefyd wedi cael ei amlygu i'r graddau mwyaf.

The industry generally believes that the A00-class new energy passenger car is a substitute for low-speed electric vehicles such as "Old Man Le", and has good development prospects in the rural market. It is believed that A00-class new energy passenger vehicles have good market prospects in the rural market, and can also help improve the travel environment in rural areas.

Li Jinyong, president of the new energy vehicle branch of the All-China Federation of Industry and Commerce Automobile Chamber of Commerce, once said, "In 2021, the non-restricted cities will contribute 70 percent of the sales of new energy vehicles, of which 58 percent of users have purchased A00-class electric vehicles. A00-class electric vehicles will Relying on the advantages of more than half of the travel cost lower than the fuel vehicle, it will take the lead in replacing the fuel vehicle of the same level. If the core shortage is not serious, the production and sales will reach 1.5 million to 2 million vehicles in 2022."