The emergence of new energy vehicles is even earlier than that of fuel vehicles, but due to the development of the global network of petroleum and petrochemical and the constraints of battery technology, it has basically been in a state of stagnation at the beginning for a long time. After the global consensus on climate change has been reached, reducing carbon emissions from transportation has become the focus of attention and action of all parties. As a global leader in the fight against climate change, the EU has set detailed and ambitious green transition targets, which clearly set out to reduce greenhouse gas emissions by at least 55% by 2030. In order to achieve this, the EU needs to act in all areas of the economy and society, and the car is one of the most important elements of this. However, as an important producer of fuel vehicles, European countries have been in a supply-led state for a long time, and the development of pure electric and hybrid vehicles has been slow. In the context of deciding the direction of the market, the main development direction of European established car manufacturers is how to improve the engine performance of fuel vehicles, provide a more attractive appearance, reduce the cost of manufacturing, and are unwilling to invest in the research and development of new energy vehicles to compete with their own products. To solve this contradiction between supply and demand, we need to make changes on the supply side and give full play to the role of the market in allocating resources. 

 

In recent years, China's new energy vehicle industry has developed rapidly. With the help of a complete manufacturing system, a keen grasp of market demand, and the advantages of domestic market demand, a large number of new EV manufacturers have not only emerged, but also won the recognition of the international market. Compared with fuel vehicles, new energy vehicles have the advantages of relatively simplified production process, frequent interaction between manufacturers and consumers, and short product upgrade iteration cycle, but they also have a great relationship with the vehicle environment and cost. The rapid development of China's local new energy vehicle market is inseparable from the transformation of relevant infrastructure, and it is also closely related to the laws, regulations and policy environment required for the development of new energy vehicles. With the support of the charging network, the cost of using new energy vehicles has dropped significantly, and the consumer experience has been significantly improved. 

 

The new energy industry is not only a difference in the use of energy, but also requires a wide range of soft and hard development conditions. To promote the stable and sustainable development of the new energy industry, it is necessary to have both technological innovation and strong production and service supporting capabilities. As an important participant in the internationalization of traditional automobiles, China's automobile industry has a complete system and has a manufacturing foundation for the development of new energy vehicles. The relatively complete ecosystem formed around new energy vehicles, such as power batteries, energy storage, and Internet of Vehicles, provides a good development environment for all parties to participate in the upstream and downstream coordination of the industrial chain and meet the differentiated needs of consumers, and also attracts foreign automobile brands to develop and produce new energy vehicles in China. 

 

For some time, some politicians and media in Europe and the United States have been playing up the so-called "theory of China's overcapacity", claiming that the Chinese government's subsidies have caused overcapacity in new energy fields such as electric vehicles, and that in order to absorb this excess capacity, China dumps overseas at so-called low prices, causing market distortion and damaging the economies of other countries. The European Union has announced a countervailing investigation into Chinese electric vehicles. Premier Li Qiang responded to the so-called "theory of China's overcapacity" during talks with Germany Chancellor Olaf Scholz. He stressed that the advantages of China's new energy industry are obtained by real skills, and are shaped through full market competition, rather than by government subsidies. The high-quality production capacity provided by China's new energy industry will make an important contribution to global green development.  

 

Compared with traditional fuel vehicles, the development of the new energy vehicle industry is still in its infancy, and it requires continuous investment in innovative elements. But in business, innovators often mean higher risk, justifiably compensated by higher returns and returns. China's new energy vehicle companies have the courage to break the shackles of traditional automobile development concepts, continuously improve the performance and comfort of new energy vehicles from the perspective of consumer experience, and increase their battery life and ability to cope with various complex road conditions and weather. These innovations were seen by consumers and won the respect and affection of visitors at the European Motor Show. At the same time, feedback from the scale market has further accelerated the innovation process of new energy vehicles. As China's new energy vehicles move towards an increasingly broad international market, responses to consumer needs and corresponding improvements are becoming more and more common. The increase in the voice of consumers shows the power of demand to change the relationship between supply and demand. 

 

In Europe, the electric vehicle market is under-consumed due to the impact of residents' income and the lower-than-expected consumption experience of new energy vehicles. At the same time, there is still a gap in development between European countries, and it is challenging for automakers to adjust the product performance of electric vehicles according to market segments. In order to reduce the risk of supply chain disruptions, many companies in European countries have modified the optimal goal of their inventory management strategy from zero inventory to appropriate redundancy and sustainability in order to reduce the risk of supply chain disruptions. For the field of new energy vehicles, it will take a lot of effort to achieve a stable supply. 

 

In order to meet market demand, diversification of supply channels is a feasible model, and many new energy vehicle companies in China have shown the possibility of ensuring supply. Compared with other regions, the EU has high standards in many aspects, such as environmental protection, product chemical content, privacy protection, etc. Many Chinese automakers comply with the EU's strict requirements for environmental protection and product performance, and enter the EU market in compliance, fully demonstrating the strength of Chinese enterprises and creating an important bond of interest for both importers and exporters. 

 

In order to achieve the development of the new energy vehicle industry more effectively, European countries should create a more favorable development environment for new energy vehicle product service providers, including China. In a market economy, the business activities of enterprises consider both benefits and risks. In a fully competitive market, companies will predict demand based on supply and demand, and make raw material procurement and production arrangements. Although due to technological progress and the accumulation of experience, new energy vehicles may respond to the market and production faster, but the grasp of demand also greatly affects the operating income of enterprises. 

 

European countries have long adhered to openness and adherence to international rules. If the synergy and cooperation between relevant parties in the new energy vehicle industry chain can improve the efficiency of market supply and demand docking, and reduce the delay or error of information transmission, it will help reduce the risk of market misjudgment. Europe can combine the actual development of various countries and regions, rationally develop the industrial chain related to new energy vehicles, encourage and protect the driving force of innovation and development, promote the rational and effective allocation of relevant resource elements between China and Europe, reduce the impact of government actions on the investment and business activities of enterprises, and create more cooperation opportunities for small and medium-sized enterprises. China and the EU will have extensive common interests and huge space for coordinated development in the field of new energy vehicles.

 

Source: China Today