MIIT aims to build more charging and swapping infrastructure for new energy cars

According to the previously announced draft of the plan, the number of new energy vehicles in China will reach 64.8 million by 2030. According to the construction target of 1:1 ratio between vehicles and piles, China still needs 63 million charging piles.

The Ministry of Industry and Information Technology of China will work with relevant departments and local governments to speed up the construction of charging and swapping infrastructure, with greater determination and efforts to promote the development of the new energy automobile industry to a new level, Xin Guobin, Deputy Minister of Industry and Information Technology, said on 24th.

Some institutions estimate that over 50 million charging piles will be added in the next 10 years, with an investment of nearly one trillion yuan.

In addition, Xin said on the 23rd that it will accelerate the release of the “New Energy Automobile Industry Development Plan (2021-2035)”. At present, the research work of the plan has been completed and has been submitted to the State Council.

According to the previously announced draft of the plan, the number of new energy vehicles in China will reach 64.8 million by 2030. According to the construction target of 1:1 ratio between vehicles and piles, China still needs 63 million charging piles.

Industry insiders predict that the market demand of 63 million will give birth to a trillion-level market. Shengang Securities also believes that in the next 10 years, the increase in charging piles will exceed 50 million units, the investment will be close to one trillion, and the compound annual growth rate of service fee income will be 51.3%.

The construction of charging piles is the key to the promotion and popularization of new energy vehicles, especially in third- and fourth-tier cities. Accelerating the development of the charging pile market is the key to upgrading the new energy vehicle industry and promoting new energy vehicles to the countryside.

At present, insufficient charging piles have become one of the important factors restricting the development of the electric vehicle industry. The policy focus has begun to shift from electric vehicles to supporting service facilities for charging piles, encouraging the optimization of the subsidy program according to local conditions, and forming a subsidy pattern of “national subsidies for vehicles and local subsidies for piles”.

In March last year, four ministries including the Ministry of Finance and the Ministry of Industry and Information Technology issued the “Notice on Further Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles.”

It emphasized that after June 25, 2019, local finances will no longer provide subsidies for the purchase of new energy vehicles (except for new energy buses and fuel cell vehicles), and will instead be used to support the construction of charging infrastructure and supporting operation services.

TF Securities also stated that charging piles are the infrastructure and a key part of the development of the electric vehicle industry. Countries in the world will transfer subsidies for electric vehicles to the construction of charging facilities.

Chuancai Securities pointed out that this year’s government work report clearly stated that “building charging piles and promoting new energy vehicles” were clearly stated. At the same time, charging piles were included in the category of new infrastructure. State Grid is also vigorously promoting the construction of charging piles and establishing an open operation platform, which has effectively solved the pain points of the industry.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/07/25/miit-aims-to-build-more-charging-and-swapping-infrastructure-for-new-energy-cars/.

Leave a Reply

Please Login to Comment