Shanghai (ZXZC)- Even though the phasing out of new energy vehicle (NEV) subsidies may post great challenges to the market, BAIC BJEV is still optimistic about the market’s future. The automaker’s 2018 annual sales target of 150,000 units is within reach and it aims to sell 220,000 new energy vehicles in 2019, Li Xiuyi, vice general manager of the automaker said at a conference.

With the phasing out of subsidies and the improvement of technology threshold, NEVs will be granted less subsidies or no subsidy at all. But at the same time, the government has adopted multiple ways to support the development of the industry, such as no traffic restrictions, no parking fee and preferential electricity price. Without subsidies, the market will give more play to its advantages in driving the industry’s development.  

The market without subsidies will require NEV companies of quicker response, efficient actions and richer product portfolio. Free from dependence on subsidies, the company will become more market-driven and more focused on the consumption trends. Apart from products, BAIC BJEV also plans to make improvement in technology, business model, and service, including the Darwin system, the separation between vehicle and battery, and its efforts in ride-sharing segment.

By the end of November, the NEV automaker has sold a total of 128,000 vehicles. According to Zheng Gang, general manager of BAIC BJEV, battery supply shortage is the main constraint on its sales. Currently, there are about 20,000 EU5 orders to be delivered. Zheng thought the battery shortage is the pain of the whole industry.