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July has become a watershed in China's new energy vehicle market this year.

The negative increase in new energy vehicles in July 2019 is clearly related to the subsidy decline. Most car companies have adopted promotional activities to rush to register before the subsidy decline, resulting in a "overdraft" in June sales, which directly affected July sales. "A decomposer who has long been concerned about the new energy vehicle market told Gaogong Hydrogen Electric that the decline in new energy vehicle sales in July is an" adjusted decline ".

The biggest factor leading to this adjustment style decline comes from changes in subsidies. After the transition period set earlier ended at the end of June, the impact of subsidy cuts began to manifest.

Before the decline of subsidies for new energy vehicles this year, the market had already overdrawn its terminal consumption power in advance, causing many consumers to compete for new energy vehicles in advance. Therefore, the downward trend in July is not surprising. "Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, pointed out that after the decline of subsidies, the sales cost of new energy vehicles has significantly increased. It is difficult for various production and sales links to quickly cope with such cost changes in July. This is also a statement: the decline of subsidies affects the choice of consumers and has a great impact on the new energy vehicle market.

However, the real impact of the subsidy downgrade is on models mainly composed of plug-in pure electric and hybrid electric vehicles. Regarding fuel cell models, the uncertainty of subsidy policies is the important reason for the decline in sales in July.

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