Why did the new energy vehicle industry fall?

new energy vehicles

On the first trading day of December 2023, the Shanghai New Energy Vehicle Index 9(399,976) fell by 0.69%. From the valuation point of view, the current China Securities’ new energy vehicles have fallen to the level of October 2020. (Source: Wind) Once hot sectors are now down.

What happened to the new energy vehicle plate? Why did the new energy vehicle sector fall?

The middle of 2019 to the end of 2021, is the “highlight moment” of the new energy vehicle sector,

and the CSI new energy vehicle index soared from more than 1,000 points in 2019 to more than 6,000 points at the end of 2021.

But what we’re seeing now, which was hot a few years ago, is failing miserably.

The impact of current new energy on traditional energy is greatly overestimated. The impact on traditional energy is certain, but can it completely impact the traditional energy industry at present? For now, it seems, the two models will coexist.

New energy vehicle battery

1. The proportion of traditional energy and new energy

40% of crude oil is used in the chemical industry, which has not yet been replaced by new energy sources, and this part has become the most solid basic plate of crude oil.

The remaining 60% of applications are in the field of transportation, but it should be noted that the bulk of this is in sea and air transport,

and passenger vehicle’s global crude oil consumption is only about 20%.

Air transport safety requirements are extremely strict, making the possibility of new energy to show hands and feet very low.

Shipping, the current inland shipping has begun to new energy ships, but the current endurance capacity is completely unable to meet,

shipping needs new energy endurance can appear to exponential growth, at present in the lithium battery this technical route, has not seen more breakthroughs.

The remaining 20% is the space that new energy can compete for at present.

2. Development of global new energy vehicles

Last year, China’s auto exports finally overtook Japan to become the world’s largest, which many people believe is a victory for China’s new energy vehicles.

However, it is mainly based on fuel vehicles, but in general, there are still many places where new energy needs to be improved.

In the developed countries, which have already touched their industrial base, they are bound to face increasing trade barriers in the future.

In developing countries, the development of new energy vehicles is very dependent on charging pile infrastructure,

and many developing countries have not been able to secure refueling, and progress is slow on the road of charging piles.

And look at China, at the end of December, the penetration rate of new energy vehicles has reached 40%, you know, the original plan, 2030 to achieve this goal.

urban charging station

From a global point of view, the new energy vehicle industry is in a stage of rapid development,

this industry has a long and highly related industrial chain, and its role in promoting the economy is becoming more and more obvious.

It is normal for the industry to rise and fall, and when it falls, we may wish to be more patient and give the industry some time to digest capacity and recover its vitality.

What to do on the way down?

Investors with appropriate risk tolerance and who are optimistic about this sector can pay attention to investing. The way to invest. By buying in batches and sticking to it for a long time, there is an opportunity to equalize the cost of 9 shares of the fund unit in the market shock and reduce the trouble caused by market shocks.

In addition, good news is also coming frequently. If the sales of new energy vehicles are still increasing rapidly, data from the China Passenger Association show that from November 1 to 26, the retail market of new energy vehicles was 563,000, an increase of 33% over the same period last year; From the policy level, in mid-November, 8 departments issued the “Notice on the launch of the first batch of Public domain 9 Vehicle Comprehensive Electrification Pilot Zone”, identifying 15 cities in northern China as pilot cities, providing new imagination space for the comprehensive marketization and expansion of new energy vehicles.

The current decline is based on a variety of circumstances, but the data of various countries are indicative of the development of charging piles.

The current decline also shows that there is still a lot of room for the development of charging piles. Of course, we still have to admit that in the field of passenger cars, new energy is the future.

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