BEIJING, Dec. 7 (Xinhua) -- Intensified capital competition is likely to trigger reshuffle in China's new energy vehicle (NEV) industry.
Thanks to favorable national policies, China's domestic NEV industry has witnessed rapid development in past years, and lured many enterprises and capital to set foot in the field.
For instance, at the end of 2017, Baoneng Group bought a 25-percent stake in Qoros Automobile, a homegrown car marker, to increase efforts in NEV development and manufacturing.
Likewise, chairman of China Fortune Land Development (600340.SH) Wang Wenxue also subscribed for nearly 53.4 percent stake in Zhejiang Hozon Automobile Co., Ltd. (Hozon Auto) for 330 million yuan.
Since 2017, China Fortune Land Development has invested in a number of NEV producers and component enterprises.
Companies such as GCL Group, Zhejiang Dahua Technology Co., Ltd. (002236), Beijing Wkw Automotive Parts Co., Ltd. (002662), Gree, Country Garden Holdings, Alibaba, Tencent and Baidu have also set foot in the NEV field.
According to statistics, more than 70 listed companies in China have invested in NEV field in recent years, with total amount standing at about 100 billion yuan.
While promoting development of the NEVs, the influx of the capital in the NEV field also leads to some problems including overheating and blind investment, and excess capacity.
The incomplete statistics show that so far, the total investment in new planned NEV projects has reached 450 billion yuan, with planned production capacity exceeding 10 million units.
Some experts warned that China's NEV industry is still in its infancy, and there are still a lot of issues that need to be promoted and resolved, such as technologies, services, and models.
Regarding these problems, the Chinese authorities have taken measures to standardize the NEV market.
For instance, in July this year, the National Development and Reform Commission (NDRC), China's top economic planner, released the latest version of the automobile industry investment management regulations, which greatly enhanced the threshold of investing in the NEV industry.
Many specific requirements for the NEV investment have been put forward, involving the development capability, construction scale, location of NEV new projects, and shareholder qualifications.
In 2019, a large number of foreign NEV brands will enter the Chinese market, which is expected to have a certain impact on the homegrown NEV enterprises. With the decreasing subsidies for NEVs and the intensified horizontal competition, the domestic NEV industry will embrace a reshuffle, said industry insiders. (Edited by Hu Pingchao, Su Dan)
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