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"

최근 몇 년 동안 전국 농촌 거주자의 소득 증가 및 소비 지출이 도시 거주자보다 빠르며 자동차 여행에 대한 수요가 시급하지만 전반적인 차량 보급률이 낮습니다. 농촌주민이 이용하는 차량의 전기화율은 1% 미만으로 도시주민의 1/3에 불과하고 성장여력이 충분하다.

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.

따라서 2021년 시골로 갈 신에너지 차량 66개 모델 중 차량은 주로 가격이 100위안 미만이고 주행 거리가 300km 미만인 소형 및 초소형 자동차입니다.

중국 자동차 제조업체 협회(China Association of Automobile Manufacturers)의 수석 엔지니어인 Xu Haidong은 신에너지 차량이 품질과 제어 면에서 더 우수하고 안락함과 안전성이 높으며 A{0}} 등급이 저렴하다고 믿습니다. 주로 농촌 시장에서 가장 많이 강조되었습니다.

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."