According to the latest sales of new energy passenger cars in April announced by the National Association of Caravans, sales of new energy passenger vehicles reached 73,145 units in April, a year-on-year increase of 1.5 times, and an increase of 31.3% from the previous month. Among them, a total of 56,468 pure-electric passenger vehicles were sold, an increase of 132% year-on-year; 16,677 hybrid passenger cars were plugged in, an increase of 243% over the same period of last year. It can be seen that the market for inserting and mixing is obviously stronger than pure electric vehicles. A good understanding of this point, after all, the current price of pure electric vehicles are relatively high, even if the enjoyment of national and local double subsidies, the final price is still not inferior to fuel vehicles. In the absence of price advantage, pure electric vehicles have concerns about range and charging equipment, so consumers are more likely to accept plug-in hybrids. Take Guangzhou as an example, the personal consumption market of pure electric vehicles is still barely opened, and the blending models represented by Corolla, Ralink and Accord are popular.

The rapid development of the new energy automobile industry in China is largely due to the subsidy policy. However, in 2016, due to the impact of new energy swindling, many listed companies imposed penalties. Since then, the state has tightened the approval of new energy subsidies, and the amount of subsidy has been declining. These are the main business of new energy vehicles. The company has caused a great burden.

Affected by the subsidy of new energy vehicles and the delay in the issuance of new energy vehicles, bus companies that rely heavily on government subsidies have become the hardest-hit areas, and the state of operations in 2017 can be regarded as tragic. It was difficult to survive in 2017 and in 2018, it was looking forward to the second batch of subsidies for national new energy vehicles in 2016 to directly reduce the accounts receivable, which eased the tone. Not only is it a bus company, but BYD, a leader in the new energy industry, is also suffering. From the first quarter of 2017, BYD’s net profit fell steadily, with a year-on-year drop of more than 20%. Net profit in the first quarter of this year even fell 83% year-on-year. To this end, BYD has also received the "inquiry letter" from the Shenzhen Stock Exchange.

At the end of last year, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Science and Technology and the Ministry of Finance jointly issued notices to set new thresholds for subsidized vehicles in terms of vehicle energy consumption, safety standards, battery performance, and cruising mileage. The total amount of subsidies for energy vehicles will be 20% lower than the 2016 policy, and the amount of central government subsidies for various types of vehicles will be reduced. In addition, the "Notice" requires that local sub-national financial subsidies for each model should not exceed 50% of the central government subsidy. The gradual decline in the government's subsidies for new energy vehicles is irreversible. After all, financial subsidies only serve as an “incubator” for new energy development and cannot be supported in a consistent manner. Subsidies will decline in successive years and become normal. With the competition in the new energy auto market becoming more market-oriented, automakers will face more challenges in production, marketing and promotion. If car companies do not work hard, even if the sales volume keeps growing, it is difficult to maintain the current increase. Taking out good products is the most needed thing for car companies.