The development, promotion, and widespread adoption of new energy vehicles are not only essential for reducing pollution but also a necessary step for human society to decrease its dependence on oil and prevent the overexploitation of fossil fuels. While new energy vehicles have just begun to gain momentum, their future growth lies in advancing high-efficiency solar panels and maximizing the use of solar energy—a renewable and virtually limitless resource. However, there are growing concerns that government subsidies for new energy vehicles may be phased out faster than expected, raising questions about whether these vehicles can eventually become self-sustaining without financial support.
A recent report suggests that subsidies for low-range new energy vehicles (those with a range of 150 km or less) could be cut or even eliminated as early as 2018. Although this news has not been officially confirmed, industry insiders believe that subsidy reductions are becoming a reality. As a result, car manufacturers must now focus more on developing competitive products rather than relying solely on financial incentives.
Thanks to sustained policy support and financial assistance, the new energy vehicle industry has experienced rapid growth in recent years. According to recent data, in the first 11 months of this year, production and sales of new energy vehicles reached 639,000 and 609,000 units respectively, marking an increase of 49.7% and 51.4% compared to the same period last year. Pure electric vehicles remain the dominant segment, with production and sales reaching 532,000 and 504,000 units respectively, up by 56.6% and 59.4%. Plug-in hybrid vehicles also saw steady growth, with 107,000 and 105,000 units produced and sold, representing increases of 22.5% and 21.8%.
Since the second half of the year, the commercial new energy vehicle market has shown significant growth, with November recording a record high of 36,000 units sold. Industry experts note that the market has historically followed a "low before, high after" trend. Xu Haidong, assistant secretary-general of the China Automobile Industry Association, stated that the growth rate in the first 11 months met expectations, and he confidently predicted that the annual target of 700,000 new energy vehicle sales would be achieved. He further estimated that next year’s sales could exceed 1 million units.
However, according to a policy announced at the end of last year, subsidies for new energy vehicles will gradually decrease. From 2016 to 2019, the subsidy was reduced by 20%, and from 2019 to 2020, it was further cut by 40% compared to 2016 levels, with full withdrawal planned by 2020.
In response to these changes, Lu Huaping, assistant to the Secretary-General of the All-China Federation of Political Parties, recently revealed that the government is considering adjustments to the subsidy policy for 2019. The focus is likely to shift toward encouraging high-mileage and low-energy consumption models. Additionally, the gradual removal of local subsidies is seen as a probable outcome.
While these rumors are circulating, a draft document outlining the direction of future subsidies is also being discussed online. According to sources, this paper was shared during a small seminar and is currently open for public feedback. Compared to the 2017 subsidy framework, the new proposal introduces stricter mileage-based criteria. Vehicles with a range below 150 km will no longer qualify for subsidies, and those with ranges between 100–150 km will lose their 20,000 yuan subsidy. For higher ranges, the subsidy amounts have been adjusted accordingly, with some models receiving increased support while others face cuts.
Industry insiders believe the goal is to push manufacturers to produce better-quality, long-range electric vehicles. Many current models lack performance and reliability, and there are concerns that some companies are exploiting the subsidy system rather than focusing on innovation.
Cui Dongshu, secretary-general of the National Association of Travel Unions, emphasized that 2018 is a crucial year for the new energy vehicle sector. The reduction in subsidies will encourage consumers to choose vehicles that meet the new standards, while those failing to comply may be pushed out of the market. This shift is expected to raise industry standards and force non-compliant companies to exit, ultimately leading to a healthier and more sustainable market.
Encoding Disk
Encoding disk refers to a digital encoder that measures angular displacement. It has the advantages of strong resolving power, high measurement accuracy and reliable work. It is one of the most commonly used displacement sensors for measuring the position of the shaft rotation angle. The code disk is divided into two types: absolute encoder and incremental encoder. The former can directly give the digital code corresponding to the angular position; the latter uses a computing system to make the pulse increment generated by the rotating code disc against a certain reference number addition and subtraction. The metal encoding disk is directly engraved with through and unconnected lines, and it is not fragile, but because the metal is not easy to corrode but easy deform, the accuracy is limited, and its thermal stability is an order of magnitude worse than that of glass. It is mainly used in motor, hardware, electrical appliances, automobile and other fields.
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