In 2020, new energy vehicles going to the countryside activities jointly launched by the Ministry of Industry and Information Technology, the Ministry of Agriculture and Rural Affairs, and the Ministry of Commerce were launched in many places across the country, driving the growth of new energy vehicle sales. Not long ago, the 2021 new energy vehicles going to the countryside event was officially launched. The event covers a wider area and has greater policy support, and has received widespread attention from all walks of life. It is worth noting that the new energy brought to the countryside today is not just cars, but more importantly, piles.

China's huge rural domestic demand market has once again become the main channel for tapping the potential of new energy vehicles. The new energy vehicles going to the countryside this time comes at a time when the new energy vehicle market has ended its wait-and-see period and is about to explode. At the same time, China's rural consumer demand after alleviating poverty in many aspects is also being transformed into a huge market growth point.

This kind of promotion will not only stimulate the demand for car purchases, but will also become an important force in the construction of supporting infrastructure for new energy vehicles in rural China. What we can learn from is that China's home appliance industry continues to develop and soar through the popularization of rural areas. This time new energy vehicles are brought to the countryside. With the decline of after-sales service, maintenance and other "after-market" functions, the expansion of the rural automobile industry chain and the new energy vehicle market will realize two-way potential tapping. This will have a huge impact on consumers, the automobile market and the changes in China's rural areas.

According to data from the Ministry of Industry and Information Technology, as of the end of 2020, sales of rural models exceeded 180,000 units in the past four months. Leaders of several vehicle companies told reporters that because most of the new energy vehicles going to the countryside activities are funded by the government, the companies not only get free opportunities to appear, but also enhance their brand image. "As a young brand, with the help of the countryside-going activities last year, our sales in the markets where the activities were held increased by more than 20% on average," said Yu Fei, general manager of the Euler brand marketing of Great Wall Motors.

It is worth noting that due to factors such as the goal of "carbon peaking and carbon neutrality" and the announcement of car manufacturing by companies such as Baidu and Xiaomi, the market's attention to new energy vehicles continues to rise. In the first two months of 2021, domestic new energy vehicle sales reached 289,000 units, a year-on-year increase of 3.2 times, accounting for 7.3% of the total cumulative vehicle sales.

"Aiming at the goal of 'China's new energy vehicles account for more than 20% of new car consumption in 2025', tapping the sinking market has become a focus." Xu Shigang, spokesman for the Jiangsu Automobile Dealers Association, said.

Gu Xiaoquan, the person in charge of Jiangsu Jimai New Energy Vehicles, said that the vast majority of low-tier cities and rural areas have always had huge travel demand. "For a long time in the past, low-speed electric vehicles were used to meet this demand. As the consumption of new energy vehicles declines, this demand is expected to be transformed into a huge incremental market."

The "Notice on Carrying out New Energy Vehicles Going to the Rural Areas in 2021" (hereinafter referred to as the "Notice") jointly issued by four ministries and commissions including the Ministry of Industry and Information Technology and the Ministry of Commerce (hereinafter referred to as the "Notice") expanded the activity area to Shanxi, Jilin, Henan, Hubei, Hunan, Guangxi, Chongqing, Shandong, Jiangsu, Hainan, Sichuan and other provinces and cities, and further optimized the selection of vehicle brands and models for going to the countryside, showing a deep penetration of the rural market. Many industry insiders predict that driven by a series of policies, domestic sales of new energy vehicles are expected to reach more than 1.8 million units this year.

Reporters' research found that the 2020 new energy vehicles going to the countryside still has a hint of "special policies during special times", and many companies are insufficiently prepared and pay insufficient attention. As the policy becomes clearer, companies are full of expectations for the rural areas activities in 2021. Among them, three issues have received widespread attention.

First, the target market for the event needs to be clarified. With the continuous improvement of my country's urbanization level, a large number of rural people have moved to cities to work. Mechanically understanding "going to the countryside" as "putting them in the countryside" does not conform to the reality in many places. "Activities should not be limited to location, but should follow consumers' lead," Xu Shigang said.

The survey found that in the 2020 new energy vehicles going to the countryside, provinces such as Jiangsu and Hainan adopted a strategy of combining high- and low-tier cities, with obvious results. This "Notice" also proposed that relevant provinces should choose third- and fourth-tier cities, counties and districts to hold a certain number of special events, roving exhibitions and corporate promotion activities. Compared with the sporadic exhibition model in many regions in 2020, this is undoubtedly more influential. It is reported that this year Jiangsu plans to expand its activities to counties (cities, districts), larger towns with large populations, and tourist areas where people gather to expand the audience and improve the effectiveness of the activities.

"There are differences in the demand points of rural consumers and urban consumers. It is helpful for companies to design product launch strategies by clarifying the target market for activities in various places as early as possible." Gu Xiaoquan said.

Secondly, how to provide service facilities. As an important supporting facility for new energy vehicles, how to build charging piles? Where is it? This is a topic that many consumers are concerned about.

The relevant person in charge of State Grid Jiangsu Electric Power Company said that the current serious lag in the construction and operation of community charging infrastructure is a major problem that plagues new energy vehicle owners. In particular, old communities face pressure from residents, property owners and other parties when installing charging piles. At the same time, household charging piles are relatively easy to build in rural areas, but the lack of public charging piles also restricts consumers from purchasing new energy vehicles.

"Rural areas are prone to voltage instability and insufficient capacitance, and infrastructure needs to keep up," Yu Fei said.

This "Notice" joins the National Energy Administration on the basis of the participation of the three ministries and commissions in 2020, with the intention of coordinating relevant enterprises and promoting the construction of charging infrastructure. In addition, the "Notice" also encourages various localities to introduce more support policies for new energy vehicles to go to the countryside, improve the use environment of new energy vehicles, and promote the construction of rural charging and swapping infrastructure.

Experts such as Xu Shigang suggested that in addition to supporting facilities such as charging piles, we should also accelerate the exploration and use of Internet technology to speed up the development of after-sales services. For example, by building an online platform to connect to market entities such as car companies, insurance companies, and service companies, it can provide consumers with conveniences such as online reservations and online processing when buying and using cars, and make up for the lack of offline outlets in rural areas.

Third, how to accurately release policy potential. The heads of several new energy vehicle companies told reporters that during last year’s new energy vehicles going to the countryside, the benefits to consumers came more from the companies than from the government. This "Notice" proposes to support companies to cooperate with e-commerce, Internet platforms, etc. to organize online car buying activities and attract more consumers to purchase through online promotions and other methods, but it does not clarify specific preferential matters.

"Currently, the purchase of new energy vehicles is exempt from acquisition tax, and it is difficult to provide fiscal and tax subsidies in the location where the sales company is located." Xu Shigang suggested that the provincial and municipal levels can clarify the details of the replacement reward and subsidy policy as soon as possible, while accelerating the elimination of old cars, while increasing the popularity of new energy vehicles.

In addition, Gu Xiaoquan and other industry insiders have also stated that the reduction of subsidies is a general trend, but the government's support for the development of new energy vehicles can be multi-faceted. For example, Liuzhou City provides parking discounts, special rights of way and other support for new energy vehicles, which has greatly promoted the development of the local new energy vehicle industry.

“As an emerging thing, new energy vehicles require a ‘push’ from the government in the initial stage of development, but they cannot ‘take the whole package’,” said Li Yongxing, a partner at Yida Capital.

It is reported that Jiangsu is planning to promote new energy vehicles to the countryside this year, and at the same time, carry out activities such as new energy vehicles entering government agencies, universities, and industrial parks, and accelerate the acceptance of new energy vehicles by ordinary consumers through demonstration and leadership.

During the interview, the reporter found that in order to promote new energy vehicles to the countryside, in addition to tapping potential on the demand side, optimization and improvement on the supply side are also essential.

Many industry insiders said that from the perspective of the entire new energy vehicle industry chain, key components and maintenance services contain huge investment opportunities.

Since 2020, due to factors such as disruptions in the global supply chain, key components of new energy vehicles such as chips and batteries have been in short supply, which has restricted the production of complete new energy vehicles, and some models destined for rural areas have also been affected. At the same time, traditional leading car companies represented by Volkswagen are accelerating the layout of key components such as batteries to seize the future market.

Li Yongxing said that compared with the insufficient utilization of production capacity of vehicle companies due to factors such as product introduction, orders for key component companies are fully booked. Especially in fields such as batteries, the revolutionary technologies of component companies are likely to have a disruptive effect on the entire industry. Strengthening the layout of key component companies and encouraging core technology research and development will not only help avoid risks, but also help improve the quality and efficiency of the new energy automobile industry.

Not only that, vehicles are durable consumer goods. Purchasing is only one step. How to provide after-sales service is also the focus.

"4S stores generally combine sales and service functions, but their opening conditions are relatively high. How to mobilize more forces to join is an important part of improving after-sales service." Xu Shigang said that many social repair companies were born in the era of traditional fuel vehicles, and they have become effective supplements to 4S stores. Compared with traditional fuel vehicles, the structure of new energy vehicles is different, and the update and iteration speed is fast, which brings challenges to many auto repair companies in the market that mainly focus on fuel vehicles. It is recommended to stimulate the vitality of these companies through methods such as brand licensing and standardization construction.

At present, some electric vehicle brands have launched a lifetime battery warranty policy for the first owner. However, to eliminate the misunderstandings of consumers in rural areas, car companies need to go deeper into the grassroots. "Every now and then, fellow villagers from the surrounding area will come to my house to take a look at new energy vehicles." Wang Fengyun said that as long as he has time, he will accompany his fellow villagers to test drive. He suggested that qualified car companies can hold more promotional activities in rural areas and clearly explain the car purchase discounts and after-sales services of new energy vehicles to rural consumers. Once a family purchases a new energy vehicle, it is possible to encourage surrounding families to follow suit.

"Although it is more convenient for every household to park and charge in rural areas than in cities, the construction of some public charging piles will be more conducive to the popularization of new energy vehicles." Tan Jianchun, general manager of Lijiang Bus Co., Ltd. in Yunnan Province, said that currently, all the buses in Lijiang City are new energy vehicles. There are no charging devices in the surrounding towns and cities, and the buses have not been "upgraded" and are still fuel vehicles.

According to relevant plans, Yunnan Power Grid will put into operation no less than 6,545 charging facilities in 2021, further expanding the coverage of charging facilities and enabling new energy vehicle users to have a more convenient and faster charging service experience.

The May Day holiday is approaching, and more and more people are traveling to the Puzhehei Scenic Area in Qiubei County, Yunnan Province day by day. Wang Fengyun’s inn has also become lively. The family’s three new energy vehicles spend most of their time on the road, either picking up passengers at the high-speed rail station or purchasing essentials for running the inn.

Wang Fengyun, 31 years old, has been running an inn in Yedu Village, Badaoshao Township, Qiubei County for 6 years. At the end of 2016, the Yunnan-Guizhou high-speed railway was completed and opened to traffic, and Puzhehei, the "Utopia", became a "hot-selling" scenic spot, bringing a steady stream of tourists to the local area. In order to transport tourists between the high-speed rail station and the inn, Wang Fengyun purchased a 2015 BYD Tang after the high-speed rail opened to traffic. "The government department subsidizes 70,000 yuan and waives the purchase tax." Wang Fengyun thinks it is a good deal to buy a new energy vehicle.

After using it for a period of time, Wang Fengyun was full of praise for new energy vehicles: "Not only are they quiet, fast, and easy to control, they are also cheaper to use than fuel vehicles at the same price."

Wang Fengyun calculated an account for reporters. The price of the car is about 200,000 yuan. When a traditional fuel vehicle travels 100 kilometers, the price of fuel consumption is 0.6 yuan to 1 yuan; when a pure electric new energy vehicle travels 100 kilometers, the price of electricity consumption is 0.06 yuan to 0.3 yuan. In addition, new energy vehicles have very little maintenance costs.

After buying a new energy vehicle, Wang Fengyun became "obsessed". Later, based on the needs of hotel management, she successively purchased two new energy vehicles. Every year during the peak tourist season, Wang Fengyun’s father, daughter-in-law, and sister would drive new energy vehicles to pick up and drop off guests. "People can rest, but cars can't." Wang Fengyun said with a smile. Most of the time, she has to go to and from the high-speed rail station 30 times a day.

Not long ago, the Ministry of Industry and Information Technology, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, and the National Energy Administration jointly issued a notice to launch a new round of new energy vehicles going to the countryside from March to December 2021. The consumption potential of new energy vehicles in lower-tier markets such as districts, counties and rural areas is expected to be further stimulated.

Du Sicong is the owner of a furniture store in Weishan Yi and Hui Autonomous County, Yunnan Province. He often drives new energy vehicles to rural areas to provide after-sales furniture services to fellow villagers.

"Most of the roads in rural areas are now hardened and easy to walk. The advantages of new energy vehicles in 'saving money' and 'environmental protection' will become more and more prominent." Du Sicong believes that in rural areas, most families have one family and one hospital. Not only is parking convenient, but charging has also been confirmed. There is a huge market space for new energy vehicles in the countryside.

Facing the vast market, relevant practitioners and new energy vehicle owners said that they must fully consider the vehicle demand in rural areas, make up for shortcomings, and help promote new energy vehicles.

"In rural areas, cars are not only a means of transportation, but also an important production tool for a family." The grassroots cadres interviewed said that in rural areas of Yunnan, most people buy cars or vans. You can buy a van for about 50,000 yuan. It has a large space for carrying people and cargo. It is very convenient to transport some fertilizers to the fields or sell vegetables and fruits in the market. At the same time, the van has a high chassis and light body, making it suitable for some special road conditions in rural areas.

However, the current new energy vehicles that can be bought for 50,000 yuan have far less interior space and traffic capacity than minivans. Consumers in rural areas expect that new energy vehicle companies can launch more models in a targeted manner to meet the diverse vehicle usage scenarios in rural areas.

At the same time, "range anxiety" and "quality anxiety" about new energy vehicles are common in rural areas. "Compared with traditional fuel vehicles, many villagers are still relatively unfamiliar with new energy vehicles." Li Yan, who is engaged in new energy vehicle sales, told reporters that many rural consumers will worry about a sudden drop in mileage or battery failure after driving for a period of time.

A new round of new energy vehicles going to the countryside is in full swing in Henan.

It is understood that this round of new energy vehicles going to the countryside will select third- and fourth-tier cities and counties in Shanxi, Jilin, Henan, Hubei, Hunan and other places to hold a certain number of special events, touring displays and corporate promotion activities. Among them, supporting enterprises to cooperate with e-commerce and Internet platforms to organize online car purchasing activities has become a highlight.

This is the third round of cars going to the countryside in China's automobile industry after 2000: In 2009, China launched a car going to the countryside campaign, and national car sales exceeded 14 million units that year; in 2019, the second round of cars going to the countryside was launched, with national car production and sales exceeding 25 million vehicles; in July 2020, the third round of cars going to the countryside started, with new energy vehicles becoming the new protagonists.

Obviously, going to the countryside has become one of the important growth drivers for China's new energy vehicle companies. According to the global sales data of new energy passenger vehicles released by the EV Sales website in February 2021, Chinese car companies account for 8 of the top 20 new energy car companies in the world. Among them, Shanghai-GM-Wuling ranked second with Hongguang MINIEV, close to Tesla, with eye-catching performance. However, in February 2020, no Chinese new energy car company has entered the top 10.

This round of models going to the countryside includes 61 models from 24 car companies, with prices mostly concentrated between 50,000 yuan and 70,000 yuan. Among them, the Hongguang Mini EV has a lower price of less than 30,000 yuan, which is considered to be more cost-effective among participating models.

The sales side of new energy vehicle companies generally have a positive attitude towards this round of rural sales, saying they are very optimistic about the third- and fourth-tier cities, counties and rural markets. "The recent advantages of the rural market mainly come from two aspects. First, low-speed vehicles, that is, the "Laotou Le" policy has become stricter, and rural areas are a larger market for scooters, and new energy vehicles are expected to form a substitute. Secondly, rural areas generally have one household, which has a natural advantage in charging." Liu Lei, BAIC New Energy's regional sales manager in Henan, said that for users in the rural market, they mainly provide conveniences such as loan purchases to facilitate users to further reduce the cost of purchasing cars.

"At the same time, online car buying and online car viewing in this round of going to the countryside can also meet the needs of rural market users to view cars and consult at any time. After all, car viewing in rural markets is not as convenient as in the city," Liu Lei said.

After multiple rounds of cultivation, the rural market’s acceptance of new energy vehicles has been greatly improved. As of 2019, China has more than 6 million four-wheel low-speed electric vehicles and more than 20 million three-wheel and four-wheel agricultural vehicles, most of which are in rural areas and third- and fourth-tier cities. This round of new energy vehicles going to the countryside is expected to upgrade a large part of them to cars.

The increase in demand is expected to further improve the level of rural infrastructure construction. "Taking into account the future development trend, we are coordinating the distribution of charging piles (stations) with township agencies, hospitals, stations, supermarkets and other units, while improving the supporting service facilities for electric trucks, taxis and other special vehicles, promoting the extension of the Internet of Vehicles platform to rural areas, and doing a good job in serving new energy vehicle owners in townships in advance." The relevant person in charge of the State Grid Xinxiang Power Supply Company said that the economic activity in rural areas has increased significantly, and the growth of new energy vehicles has gradually entered a period of acceleration.

During the interview, the reporter learned that the popularity of after-sales service outlets has become the focus of rural users' attention to the next development of new energy vehicles. Rural new energy vehicle users are generally not worried about the construction of charging piles, but are particularly concerned about after-sales services. "Although pure electric vehicles are simpler to maintain, they are more prone to problems than gasoline vehicles. In rural areas, once the vehicle is lying down, it is more troublesome to repair, which undoubtedly increases the owner's cost of use." A Xinxiang car owner told reporters.

Industry insiders call for more stimulus policies to be introduced in various regions, while companies should develop more products suitable for the market, further expand their outlets, and provide more benefits to consumers.

Recently, reporters visited some rural areas and found that electric vehicles are showing advantages in bringing them to the countryside, but some farmers still have concerns about purchasing electric vehicles.

At a charging station along Liyin Road in the suburbs of Yangquan City, Shanxi Province, the reporter met Song Xuebin who was charging his vehicle. Song Xuebin, a villager in nearby Hanhegou Village, told reporters that for farmers, the biggest attraction of electric vehicles is saving money. In addition to saving fuel costs compared with traditional fuel vehicles, electric vehicles also have unique cost advantages in terms of maintenance and repairs. Take him driving a van for delivery, for example. He used to be very careful when driving, but now he hardly calculates costs because “there’s not much money anyway” and it’s easier to worry about because “there are fewer parts that can fail.”

In addition, Song Xuebin also said that the driving experience of electric cars is also very attractive to him. "I used to drive fuel cars, but they were cheap cars and difficult to drive. Now I spend an extra 10,000 to 20,000 yuan to buy an electric car, and it is much easier to drive. The power comes as soon as I step on the pedal."

The reporter visited electric vehicle 4S stores in many urban and rural areas in Shanxi. The clerks all said that the number of rural residents buying electric vehicles has increased significantly in recent years. Some sales leaders also revealed that they will conduct targeted training for employees to better introduce the performance and usage skills of electric vehicles to local farmers.

"When one household in our village bought an electric car, others were still waiting and watching, fearing that it would not work. Now three or four years later, five or six households have bought electric cars, and I have bought one myself. This is the case in rural areas, and it needs a process of promotion." A 4S store salesperson said.

The reporter visited and found that rural areas also have unique advantages over cities in terms of parking and installing charging piles. In addition, some brands of electric vehicles come with free charging piles, so "without spending a lot of money" has also become a major attraction. Wang Qi, an electric power worker who works at a township power supply station, told reporters that now local people can quickly register and install charging piles as long as they provide basic identity and house ownership certificates and other materials, which is very convenient. "Fast charging also involves issues such as replacing mainline equipment, but slow charging is generally no problem in rural areas. It is sufficient for local usage scenarios and everyone is relatively satisfied." Wang Qi said.

However, some farmers who plan to buy cars still have concerns about electric vehicles, mainly focusing on aspects such as cruising range and battery warranty. In a traditional fuel vehicle 4S store, a middle-aged farmer who was looking at cars made it clear that he would not buy an electric vehicle. "The battery life is too short, charging is too slow, and it is inconvenient to travel." He also heard that replacing the battery when it reaches the end of the year is very expensive and not cost-effective.

The reporter learned that some electric vehicle brands have launched a lifetime battery warranty policy for the first owner to eliminate consumers' battery maintenance anxiety. However, a salesperson told reporters that consumers' cognitive bias towards electric vehicles still exists to a certain extent, and a lot of new information has not been disseminated to consumers. There is still a market for bias against electric vehicles on the Internet, and they are helpless.

In addition, with the development of network information, information such as low sales rates and poor circulation of second-hand electric vehicles also affects the purchasing sentiment of rural consumers to a certain extent.