New energy car subsidies are


Benefited from the upcoming new subsidy policy for new energy vehicles, the stocks in the new energy auto sector performed well yesterday. As of yesterday's close, GAC Group's (10.03%) strong daily limit led the gains, followed by Changan Automobile's 9% increase. In addition, JAC (5.24%), BYD (3.91%), FAW Car (2.65%), and Hippocampus Auto stocks (2.43%) and Shuguang stocks (2.08%) also recorded cumulative gains of more than 2%.

In terms of capital inflows, yesterday, a total of 9 new energy auto stocks achieved a net inflow of funds, and a total net inflow of funds reached 183.4042 million yuan. Specifically, Changan Automobile ranked first in net inflow of funds yesterday, net inflow of funds reached 66.09 million yuan, Guangzhou Automobile Group ranked second, net inflow of funds yesterday reached 30.605 million yuan, Jianghuai Automobile yesterday net inflow of funds reached 29.4225 million yuan, Ranked third, while three stocks such as BYD (158.238 million yuan), Haima Automobile (15.248 million yuan), and SAIC (1345.89 million yuan) also had net inflows of more than 10 million yuan yesterday.

In May 2010, the Ministry of Finance promulgated the Interim Measures for the Administration of Privately-purchased Pilot Financial Assistance Funds for New Energy Vehicles. The pilot period of the subsidy policy is from 2010 to 2012. At present, the pilot has already expired and the extension policy is about to be issued. The Ministry of Finance, the Ministry of Science and Technology, the Ministry of Industry and Information Technology and the four ministries and commissions of the National Development and Reform Commission have reached a consensus that China's new energy vehicle subsidy policy plans to extend for another three years and will expand the scope of the pilot cities.

According to incomplete statistics from China National Automobile Association, in 2012, China produced 12,552 new energy vehicles, of which 11,241 were pure electric vehicles and 1311 were plug-in hybrids; 12,791 new energy vehicles were sold, including 11,375 pure electric vehicles and plug-in type 1416 hybrid vehicles. Comparable caliber comparison shows that the production and sales volume of pure electric vehicles in 2012 increased by 98.8% and 103.9% respectively over the previous year.

Insiders pointed out that in the past, new energy vehicles in China were mainly based on buses, but in recent years private purchases of new energy vehicles have gradually increased, which will stimulate the new energy automotive industry to enter a fast lane. With the increase in the promotion of the private car sector, the domestic production and sales of new energy vehicles are expected to exceed 15,000 vehicles this year.

Guotai Junan believes that public transportation is the most ideal breakthrough for new energy vehicles, especially pure electric vehicles. Under the background of the new government’s efforts to build a new type of urbanization and develop urban public transport, public transport will welcome large-scale purchases and updates. The new energy bus is expected to usher in a good opportunity for development. We are optimistic about Yutong Bus and Ankai Bus.



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