Is The Best Era Of China'S Power Battery Past?

Zuo Maoxuan / Wen

The good era of Chinese electric vehicles is over. The wall built by the policy has been unloaded, and the market has become a key factor in deciding the new pattern. Entering the 2020, the market share of China's new energy enterprises accumulated over the years has been eaten up. Domestic Tesla has become the biggest winner in the Chinese electric vehicle market. Some young drivers of Chinese car manufacturing are still struggling to catch up with dreams, and some have already been out.

For China's auto industry, new energy vehicles are unprecedented opportunities. Over the past ten years, China has vigorously supported the new energy vehicle industry, hoping to realize the dream of auto power through "road overtaking". More importantly, we hope to cultivate a number of excellent enterprises and participate in global competition.

The traditional fuel vehicle has been developed for more than 100 years. In terms of internal combustion engine technology, China and the West are very far apart, and the new energy vehicle has pushed the Western advantages back to the same place.

Unfortunately, China has not yet had a global electric vehicle company like Tesla. However, China has formed the world's leading new energy industry system, especially in the electric vehicle's core technology, battery.

BYD and the "water gap war" in the Ningde era were like a dramatic opening, which opened a new competition for the power battery industry.

On the other hand, the policy umbrella has been retracted, and the powerful Japanese and Japanese forces will fully open fire. China's power battery industry will undergo a process from quantitative change to qualitative change. Eliminating backward production capacity and encouraging high quality production capacity is the irreversible trend of China's power battery industry in the future. Market from closed to open is also the only way for industrial development.

However, objectively speaking, the open competitive environment will contribute to the healthy development of the market to a certain extent, and promote the survival of the fittest in the industry. This competition will be all-around, from talent to patented technology, from manufacturing level to R & D strength.

Is the best era of China's power battery business gone? The answer is No.

The new energy vehicle is still in its early stage. In 2019, global sales of vehicles exceeded 90 million, but new energy vehicles sold only 2 million 100 thousand vehicles, and more than half of the sales came from China. The huge growth space of new energy vehicles also has more potential for the power battery industry.

The vast market is a stage for excellent enterprises to perform, and provides fertile soil for enterprises to become bigger and stronger.

On the other hand, the global automotive industry is moving eastward strategically. Multinational corporations regard China as the main battlefield of electrodynamics and give local enterprises more opportunities to expand their scale on the basis of supply chain advantages and thus have the opportunity to participate in global competition.

In the future, China's automobile industry will rely on new energy vehicles, and it will probably be on the top of the world. China's power batteries and industrial chain enterprises will also play an increasingly important role, but the overall upgrading of the industry is still a long way to go. Local battery enterprises must have good internal strength, and must have their own technical advantages of moat and form professional barriers to grasp the initiative.

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