China recently announced a target of 20 percent penetration rate of new energy vehicles by 2025, and in the opinion of William Li Bin, founder, chairman and CEO of NIO, this target is actually a somewhat conservative one.
China's State Council's "China 2035 New Energy Vehicle Development Plan," released last month, proposes a target of 20 percent penetration of new energy vehicles in China by 2025.
"This penetration rate is expected to be around 5% or 6% this year, which is still some distance from 20%. But if we look at this trend now, I think there should be no problem to accomplish this target," Li said, adding, "I myself think this figure is actually a little bit conservative."
Li made the remarks while giving a speech at the 13th Golden Kirin Forum in Beijing on December 10.
NIO founder cites strong local supply chain as advantage for Chinese EV companies
In his view, in addition to the need for environmental protection and carbon reduction, there are many other driving factors behind the increased penetration of new energy vehicles in China. Electric vehicles are better suited to the needs of intelligence, especially autonomous driving, is the most obvious one.ย
Li also said that after Covid-19 this year, NIO's deliveries have continued to climb, with 5,291 units delivered in November and 36,721 units delivered so far this year.
In Li's view, China's all-electric passenger car market is beginning to enter an explosive period starting in the second half of this year.
"What's different from the past few years? In the past few years, the growth of EV sales in China was mainly based on corporate operating vehicles, such as cabs or shared cars, which were more subsidized at the time. But this year, after the subsidies have been withdrawn, the demand for individual vehicles has gone up significantly." Li said.
According to Li, the growth driven by individual demand is actually healthier, which is a foundation for the long-term development of the industry, meaning the industry has really entered a new stage of development.
"Some people say that this is the first year of electric vehicle boom in China, and I think that's very reasonable," Li said.
Will NIO follow Tesla, XPeng, Li Auto in issuing additional shares?
More on Tech Industry
