With more than 18 million production and sales volume, China as the world's largest car market will enter a new transition time for the auto industry. The "12th five-year plan" period should be the right time for the industry to change "from big to strong". Specifically, on the one hand it is proposed to promote energy efficient cars including new energy driven vehicles; on the other hand it is advised to merge and acquire enterprises and eliminate backward production capacity to solve the problem of structural overcapacity. As a pillar industry of national economy the car industry is also facing a critical period of transformation and upgrading; this is China's crucial 5 years to change the industry from "large" to "powerful".

 

In the big picture of the entire industry, in the next 5 years China’s production and sales of cars will likely reach 30 million, and there is unknown factors about how the new energy vehicles would develop. However, increasing power of the car industry will inevitably bring about an accelerating, widespread use of cars. The rapid development of a car-based society also means that cars will be accessible to the majority of people.

 

Compared with traditional vehicles, new energy vehicles are still in an emerging field, and the market is not mature, easily affected by policy directions. Data show that in February 2009 there was a first wave of attention from the internet community because of the government’s awarding of new energy vehicles pilot cities and releasing new energy tax incentive policies; another peak of attention arose because of NPC & CPPCC’s issue discussion of energy vehicles in 2010.
 

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