Under the goal of having carbon emissions peak and achieving carbon neutrality, new energy vehicles (NEVs) have been gaining momentum in China's automobile field. The automobile industry serves as one of the paramount pillar industries in Chongqing. How mature are its NEV technologies and the industry, and what is the status quo?

Leading domestically in development speed

The national electric vehicle industry has ushered in a new round of rapid growth.

According to data from the China Association of Automobile Manufacturers, from January to September 2021, domestic production and sales of NEVs increased by 1.9 times year on year, more than ten times higher than the growth in traditional vehicles.

Chongqing witnessed a sharper rise.

Data from Chongqing Economic and Information Technology Commission show that in the first three quarters of 2021, the city's production and sales of NEVs reached 97,000 and 93,000, respectively, up 223% and 210%. In September alone, the production surged 247%.

"At present, most of the NEVs produced and sold by Chongqing are electric vehicles," said the relevant head of Chongqing Economic and Information Technology Commission. "Chongqing's electric vehicle market is developing at a faster pace than other markets, and it has been growing continuously recently."

According to relevant national planning, the sales of NEVs, mainly electric vehicles, will reach 20% of total vehicle sales by 2025. Some industry insiders even believe that the proportion may exceed 35%.

Seizing a new round of industrial opportunities

Supply system

The relevant head of Chongqing Economic and Information Technology Commission said that in Chongqing, a NEV industrial system of "9 + 2 + 5 + 30" and a complete NEV industrial chain has formed. There is a complete supply system for power, transmission, and brake systems, as well as the steering, axles, interior, air conditioning, and other major parts of a vehicle.

Under the support of the mature system, in the first half of 2021, the production and sales of NEVs in the city reached the total production and sales in 2020, with a year-on-year increase of more than twice.

Among them, Chongqing Ruichi Automobile Industry Co., Ltd. continued to be the first in the field of new energy logistics vehicles. The sales of its Seres SF5, which is jointly created by Sokon Group and Huawei, have seen an increase of more than 30% for several months consecutively.

In August, Saic-Iveco Hongyan Commercial Vehicle Co., Ltd. ranked first in the sales of both new energy heavy trucks and new energy tractors. Chongqing Changan New Energy Vehicles Technology Co., Ltd., and Lifan Technology (Group) Co., Ltd. put nearly 700 battery swapping vehicles in the field of cruising taxi and online car-hailing services.

Talent

In addition to the industrial system, Chongqing boasts a robust platform that supports talent.

Lots of institutions and universities have made achievements in such fields as automobiles, new energy, machinery, electronics, and software, including two automobile testing agencies, Changan Automobile Global R&D Center, Chongqing University, Chongqing University of Technology, Chongqing University of Posts and Telecommunications, Chongqing Jiaotong University, etc.

They have helped create Chongqing's technological advantages in electric vehicle design, development, testing, and validation.

Policies

"Besides, Chongqing has established a comprehensive policy system in terms of infrastructure construction, subsidies in circulation, and application encouragement in the public sector," said the head of Chongqing Economic and Information Technology Commission.

The city has introduced a three-year action plan for NEV application scenarios and a work plan for promoting and applying NEVs in 2021. Clear targets have been set for the future proportion of electric vehicles in the areas of busses, logistics vehicles, taxis, and online car-hailing services. The city's level of policy support is higher than the country's average.

The head also predicted that in the next five years, Chongqing's electric vehicle industry would see a significant rise in all aspects by virtue of all favorable factors.