National Passenger Car Market Information Joint Conference showed that in September, the penetration rate of new energy vehicles retail exceeded 30% for the first time, reaching 31.8%. What does it mean if the retail penetration rate of new energy vehicles exceeds 30%, what impact will it have on new energy vehicle companies, and how much impact will it have on the fuel vehicle market?
Retail penetration rate of new energy vehicles is an important market indicator, referring to the proportion of new energy vehicle sales to the total automobile sales within a certain period of time. The new energy vehicle index exceeds 30%, which means that new energy vehicles have made comprehensive breakthroughs in the sales of economical and medium-sized new energy vehicles, and also reflects that all types of new energy vehicle markets have performed well.
Specifically, in cities where purchase restrictions are implemented, the retail penetration rate of new energy vehicles has increased significantly, with the sales of pure electric vehicles rising from 6% in 2019 to 30% in September this year; and among non-purchase restrictions, the sales of pure electric vehicles in large and medium-sized cities accounted for basically the same, rising to 22% in September this year. Although the retail penetration rate of county and township markets has increased significantly, compared with that, the sales share of fuel vehicles is still relatively high, and new energy vehicles have broad development potential in small and medium-sized cities and county and township markets in the future.
The increase in retail penetration rate of new energy vehicles has a significant boost to new energy vehicle companies. Especially as the market expands, the scale of new energy vehicles has increased significantly. At the same time, the increase in retail penetration rate of new energy vehicles will also bring a major impact on the fuel vehicle market, leading to a decline in the size of the fuel vehicle market, further improving the competitiveness of the new energy vehicle market, and promoting the popularization of electrification to accelerate the arrival of the era.
It is worth noting that in 2021, the sales of joint venture brands' traditional fuel vehicles fell by 18%, the sales of independent brands' traditional fuel vehicles fell by 7%, and the sales of luxury brands' traditional fuel vehicles fell by 9%. The advantages of joint venture brands in the fuel vehicle market gradually weakened. Independent brand new energy vehicles will form a major alternative to joint venture brand fuel vehicles and promote changes in the market structure.
At the same time, we should also see that retail penetration is not a simple linear increase, but will have ups and downs, which is closely related to the maturity of new energy vehicle technology, consumer psychological changes, and infrastructure improvement. With the fluctuation of oil prices, electric vehicles under high oil prices have obvious cost-effective advantages. However, while the sales of new energy vehicles are growing rapidly, the insufficient level of charging facilities has also made it difficult to charge, making it difficult for some consumers to choose electric vehicle with confidence.
In addition, my country's new energy vehicle sales are mainly driven by high-end and low-end, and mid-range models are not yet ideal. In fact, the mid-range vehicle market is the largest increase in new energy vehicles in the future, but this target user group is also the most picky. If the new energy vehicle products are not outstanding enough and cannot meet the needs of multiple scenarios, it will be difficult to boost the mid-range model market.
In the future, with the continuous increase in retail penetration rate of new energy vehicles, new energy vehicles that have long been on the cusp of the wind will undoubtedly remain higher in popularity. This also prompts brands to invest more energy in supply chains, product fast charging technology, charging facilities replenishment efficiency, and marketing. Only by expanding the new energy vehicle market can we share a larger "cake".
