My Suggestion to the future of China's New Energy Vehicle

By Robert Galyen

I first came to China for work in 2012 and now is the chief technology officer of Ningde Contemporary Amperex Technology Co., Limited (hereinafter referred to as CATL). During my more than seven years of working in China, I have personally experienced the rapid development of China's new energy vehicles, and witnessed the whole process of growing up as a wellknown supplier of power batteries of CATL. Taking this opportunity, I would like to talk about my views on the global competition situation of new energy vehicles and power batteries.

First, China's new energy vehicle strategy has achieved great success and won in the first half.

China attaches great importance to the development of new energy vehicles. President Xi Jinping once stressed that the development of new energy vehicles is the only way for China to move from a big automobile country to an automobile power. The Chinese government has formulated scienti fic development plans and incentive policies, and Chinese companies have continuously increased their investment, which has brought in great success in industrial development:

First, the scale of new energy vehicle is leading the world. Production and sales have ranked first in the world for four consecutive years, accounting for more than 50% of the global market. Second, the technical level has increased signi ficantly. Battery energy density,vehicle mileage, intelligent control, etc. are basically synchronized with the international level. Third,the industrial system is increasingly improved. An industrial system with complete structure, independent control and stable supply has been established. Fourth,the international competitiveness has been greatly enhanced. The pure electric bus technology is leading the world and has been exported to more than 30 countries. CATL has repeatedly defeated Japanese and South Korean companies, and successfully cooperated with more than 10 international high-end brands such as BMW and Volkswagen.China's new energy vehicles take the lead in establishing an industrial base, relying on China's powerful information technology and Internet industry. If the government continues to support for 5-10 years, the industry can achieve a comprehensive lead and change the backwardness of traditional vehicles. Core components such as power batteries are advancing rapidly, relying on batch applications to achieve rapid iteration of technology, and have the opportunity to beat Japan and South Korea to lead the world and seize hundreds of billions of dollars in market share each year.

Second, the development of global new energy auto industry has stepped into the second half, and the competition is more intense.

The development achievements of China's new energy automobile industry have aroused global attention. Countries have taken measures to catch up. The development of new energy automobile industry has changed from a Chinese one-man show to a global chorus. For example, the EU has enacted strict emission regulations and penalties,which forced the transformation of enterprises. The United Kingdom, the Netherlands, Norway, France and other countries have announced timetable for the ban on the sale of traditional fuel vehicles and reversed industry expectations. Multinational automobile companies are eager to propose an electrification strategy, and continue to increase the investment in launching a new experience of the electric platform to regain the competitive advantage. Volvo and Mercedes respectively proposed to no longer produce pure fuel vehicles in 2019 and 2022; Volkswagen proposed to 2030 all the models are available in an electric version. Japanese and South Korean battery companies are wellfunded and backed by state support, frequently making "low price strategies" in an effort to occupy the international market.

2015 Friendship Award Receipient（Robert Galyen）

Third, at a critical moment, in order to be invincible,we must maintain strategic strength and continue to make breakthroughs.

In the past ten years, it was the first half of the development of the new energy automobile industry.Although China has seized the opportunity, its position is not stable. In the next decade, market participants will increase greatly and their strength will be strong.Industrial development will enter the second half, and real competition has just begun. At this critical juncture,I suggest that the Chinese government maintains its strategic strength, gives play to its institutional advantages, continues to adopt a forward-looking strategy, and builds an auto power with industry transformation:First, to study the post-subsidy policy system for 2021-2030 as soon as possible to ensure that the supporting policies continue to be introduced. Second, to study and timely release the timetable for the ban on the sale of fuel vehicles, and guide the industrial investment layout in advance. Third, to continue to support outstanding and strong auto enterprises to occupy the commanding heights of technology as soon as possible. Fourth, to combine the development of new energy vehicles and energy storage industry to promote energy conservation and emission reduction in the transportation sector and the transformation and upgrading of the energy industry.(The author is Friendship Award winner in 2015, Chief technology officer of Contemporary Amperex Technology Co., Limited, Ningde, Fujian)