Analysis of the Electric Vehicle Industry

The electric car market has always played an important role in China. This paper will analyze from three aspects: preferential policies, consumer demand and product technology innovation.

Firstly, in the development process of electric vehicles, government support policies have played a key role in promoting industry growth.The government provides purchase subsidies and tax incentives for both the people and enterprises. Since the development of electric vehicles, purchase tax subsidies have always existed. Nowadays, the State Council's announcement on the continuation and optimization of the policy of reducing and exempting the purchase tax for new energy vehicles states that the purchase tax for electric vehicles will still be fully exempted from 2024 to 2025. In addition, new energy vehicles also enjoy tax incentives such as vehicle and vessel tax reductions, further reducing consumers' purchasing costs.

The government is also promoting the construction of infrastructure such as charging stations to solve the long-standing problem of electric vehicle charging. For example, the Implementation Opinions on Further Improving the Service Guarantee Capacity of Electric Vehicle Charging Infrastructure issued by the National Development and Reform Commission in conjunction with other departments propose that by 2025, more than 4 million charging piles will be built nationwide. At present, the plan is also being implemented normally, and there are charging stations of various brands across the country, most of which also support mutual compatibility. At the same time, the government also encourages other enterprises to participate in the construction and operation of charging infrastructure, and will provide certain policy support and tax subsidies.

On the demand side, with the development of technology, consumers' demand for intelligent functions of electric vehicles is increasing day by day. Functions such as autonomous driving, chauffeur parking, and end-to-end intelligent driving have become the focus of consumer attention. Among them, Xiaomi Auto, as a newcomer in the electric vehicle industry, has done quite well in the above aspects, and its achievements have also been demonstrated in sales. In less than a year since its launch, it has achieved a record of 120000 vehicles.

In the coming years, the demand for electric vehicles in the market will continue to grow rapidly. According to predictions, global sales of electric vehicles will reach over 20 million units by 2025. In the Chinese market, the sales of electric vehicles are expected to exceed 12 million units. With the continuous advancement of technology and the improvement of consumer awareness, the market penetration rate of electric vehicles will further increase, especially in urban areas, where electric vehicles will become the mainstream mode of transportation.

Battery technology is one of the core driving forces for the development of electric vehicles, and its progress directly affects the performance and market competitiveness of electric vehicles. Range has always been a pain point for electric vehicles, one of the reasons being that the battery's range performance varies at different temperatures. In this regard, battery company CATL and BYD have led a group of companies to optimize battery materials and structures, and the energy density of batteries has been continuously improving. The second requirement is the speed of energy replenishment. The high-voltage platform of electric vehicles, combined with high-performance batteries, can achieve short-term energy replenishment and long-term endurance. At the same time, safety is also of paramount importance, and battery companies have conducted research on thermal management systems and battery materials.

The upgrade of intelligent driving technology, also known as L3 autonomous driving technology, also known as "intelligent connected vehicles", will gradually be certified by 2025. At present, the application direction of L3 may shift towards intelligent travel, that is, towards ride hailing services. In terms of household cars, the current L2 level autonomous driving technology does not allow drivers to take off their hands and drive for more than 15 seconds, and they still need to maintain control of the vehicle. The application of L3 in family cars may provide drivers with a more comfortable driving experience and even more rest time.

2025 will be a crucial year for the development of electric vehicles, and may also be an experimental year that lays the foundation for the future appearance of electric vehicles. As consumers, we will definitely enjoy products with better technology, higher cost-effectiveness, and more affordable prices.