New Energy Automobile Obtained National Policy Preference, Concept Stocks Price Up Followed

Ministry of Finance andother three ministries announced recently that the subsidy standard implemented last year shall continuous to next year. Analystbelieves that new energy automobile subsidy shall continuous after it current policy expired. During the period, sales of new energy cars will double and concept stocks shall price up.

Ministry of Finance, Ministry of Science, Ministry of IndustryDevelopment and Reform Commission release recently. The notification says that the current subsidy will continuous until Dec 31 2015. Besides, Ministry of Finance says that to keep policy consistency, it will remain financial subsidy even after the current subsidy expired.

The notification says, according to regulation, pure electronic passenger car, plug-in hybrid passenger car includes REEV, pure electronic car, fuel battery automobile subsidy of 2014 and 2015 shall cut 10% and 20% respectively based on 2013 standard. However, the new notification change the regulation to subsidy of 2014 cut 5% only based on 2013 quota, and 2015 subsidy cut 10% based on 2013. It is implemented on Jan 1 2014.

The notification points out for speeding up new energyautomobile segment development, energy saving and displacement decrease and air pollution important, Ministry of Finance, Ministry of Science, Ministry of IndustryDevelopment and Reform Commission have initialed new energy automobile application and population work since 2013. From the result it got, every work go well, volume of popularization increasing, and market scale developed. Policy influence gradually appears.

According to statistics, Ministry of Finance and other three ministries have initialed energy saving and new energy automobile popularization since 2009 into as many as 25 cities. New energy automobile segment has developed since that moment. In 2013, pure electronic automobiles China made domesticallywere up to 14,235, which have increased 48.98% over the figure of 2012.

However, according to national , pure electronic cars and plug-in hybrid cars production and sales shall mount to 500 thousand. And up to year 2020, the figure of production shall be 2 million, and production and sales accumulated to 5 million. New energy automobile has stepped into fast development period.

“With the development of government subsidy and infrastructure development, our country new energy automobile will welcome its harvest period. It is definitely good news for new energy automobilesR & D companies.”Insider points out. Subsidypolicy shall continuous after it current policy expired is a good new for the segment.