National People's Congress deputy and Jianghuai Automobile Group's Zhou Fugeng proposes at the Two Sessions

On the eve of the 2022 National Two Sessions, Zhou Fugeng, a deputy to the National People's Congress and senior engineer at Jianghuai Automobile Group, unveiled four proposals: "Suggestions on Boosting Momentum for the Development of the New Energy Vehicle Industry," "Suggestions on Further Optimizing the Usage Environment for New Energy Passenger Vehicles," "Suggestions on Refining Policies for New Energy Commercial Vehicles," and "Suggestions on Including New Energy Coaching Cars in Public Sector Vehicle Management and Encouraging Their Widespread Adoption."

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In 2021, China's production and sales of new-energy vehicles both surpassed 3.5 million units, marking a significant highlight in the nation's automotive industry development. However, due to factors such as rising raw material prices, chip shortages, and policy adjustments, domestic production and sales of new-energy vehicles experienced some fluctuations. Zhou Fugeng emphasized that as the new-energy vehicle industry advances through different stages, continuous optimization and integration of various policies will further boost the sector's growth momentum, driving high-quality development with profound practical significance. To this end, Zhou Fugeng proposed three recommendations aimed at enhancing the industry's growth drivers: establishing a supply-and-demand adjustment and price-stabilization mechanism for the credit market; extending once again the policy exempting new-energy vehicles from purchase tax; and offering additional incentives for consumers at the usage stage.
After entering 2022, China’s subsidy policy for new-energy vehicles has entered the countdown phase toward complete withdrawal. Specifically, the purchase subsidy policy for new-energy passenger cars will expire on December 31, 2022. The full phasing out of financial subsidies will inevitably increase cost pressures on automakers, forcing them to raise product prices— a move that could dampen consumers’ enthusiasm for buying new-energy passenger vehicles. In light of this situation, Zhou Fugeng suggests providing policy support specifically tailored to the usage stage of new-energy passenger cars. He believes that to enhance the appeal of these vehicles—to alleviate users’ concerns about purchasing and owning them—automakers should carefully consider real-world driving scenarios from the user’s perspective, focusing instead on improving the overall experience during vehicle use. For instance, boosting the convenience of charging infrastructure, offering free off-peak charging options, and implementing multiple measures to create convenient and cost-effective conditions for users— all aimed at sparking consumers’ desire to buy and embrace new-energy vehicles.
Currently, China's new-energy vehicle industry is dominated by passenger cars, with most industry policies and societal resources concentrated in this segment. However, the development of new-energy commercial vehicles, particularly trucks, has lagged behind. Under the "Dual Carbon" strategy, the commercial vehicle sector—especially trucks—faces even greater carbon-emission pressures compared to passenger cars. According to relevant statistics, although cargo vehicles account for about 11% of the overall automotive market in China, their total carbon emissions make up roughly 60% of the country's road transportation sector's emissions. In light of these challenges, Zhou Fugeng emphasizes that the transition to new energy for cargo vehicles is not only inevitable but also increasingly urgent.
Public data shows that in 2021, China's cumulative sales of new-energy commercial vehicles reached 103,000 units, yet their market penetration rate remained low at just 2.4%. Zhou Fugeng analyzed that the main factors hindering the widespread adoption of new-energy trucks can be summarized into three key areas: higher purchase costs are curbing consumer demand; some end-users find it challenging to meet the 20,000-kilometer requirement within two years; and essential supporting infrastructure urgently needs improvement. Based on these insights, Zhou Fugeng proposed three specific recommendations: First, optimize preferential policies for using new-energy trucks. This includes reducing vehicle purchase costs, extending the current incentive policy that encourages replacing light-duty gasoline trucks with pure-electric ones, and gradually expanding its scope to promote large-scale adoption of pure-electric and hydrogen-fuelled vehicles. Additionally, lower operational costs by offering targeted subsidies while refining favorable pricing policies for electricity consumption, parking fees, and highway tolls tailored specifically for new-energy trucks. Second, consider relaxing the 20,000-kilometer subsidy threshold—allowing truck owners to apply for incentives once they reach the 20,000-kilometer mark, rather than requiring them to hit this milestone within two years. Furthermore, ease the 20,000-kilometer requirement in certain specialized scenarios, such as airports, power grids, and ports, where operating conditions may differ significantly. For instance, the two-year time limit could be extended to three years in these cases.
Third, accelerate the construction of charging and battery-swapping infrastructure for new-energy commercial vehicles, prioritizing the improvement of such facilities in high-frequency usage scenarios—such as delivery services, postal operations, and urban distribution networks. Additionally, selectively upgrade charging stations in certain areas to ensure they meet the charging requirements for both new-energy passenger cars and commercial trucks. Moreover, Zhou Fugeng also proposed including new-energy instructor vehicles into public-sector vehicle management and encouraged their wider adoption. He expressed hope that relevant policies would be introduced to guide local public security examination agencies in demonstrating the use of new-energy test vehicles.

Translated from Sina Auto

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