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New Energy Vehicles Arrived in the Cold Window of "Falling" and Welcome to a New Window of Development
In mid-October, the release of third-quarter performance previews from listed car companies revealed that new energy vehicle sales saw a year-on-year increase in the third quarter. On October 12, data from the China Association of Automobile Manufacturers (CAAM) showed that from January to September, the cumulative production and sales of new energy vehicles rose by 40.2% and 37.7%, respectively. Henan, a key player in the passenger car industry, saw Yutong Bus achieve a 13.57% and 10% year-on-year growth in September alone. Industry experts believe that the new energy vehicle sector is entering a period of technological maturity and improved industrial structure after the initial wave of policy support.
On October 10, it was reported that new energy vehicle production and sales experienced rapid growth in September. With policy shifts at the beginning of the year and adjustments to the new energy vehicle catalog, the sector entered its traditional peak season in the third quarter, with September seeing double-digit growth in both production and sales.
According to CAAM statistics, in September, new energy vehicle production reached 77,000 units, while sales hit 78,000 units—up 79.7% and 79.1% year-on-year, respectively. Pure electric vehicles accounted for 64,000 units in both production and sales, rising 85.2% and 83.4% compared to the same period last year. Plug-in hybrid vehicles also saw strong growth, with 13,000 and 14,000 units produced and sold, respectively—an increase of 57.6% and 61.9%.
From January to September, total new energy vehicle production reached 424,000 units, with sales reaching 398,000 units—a 40.2% and 37.7% rise over the previous year. Pure electric vehicles accounted for 348,000 and 325,000 units in production and sales, up 51.6% and 50.1%. Plug-in hybrids saw 76,000 and 73,000 units produced and sold, marking a 4.0% and 0.6% increase.
Notably, large-scale automakers in Henan, including Yutong Bus, announced their September results. Production reached 7,229 units, up 13.57% year-on-year, while sales totaled 7,060 units, up 10%. This marked more than five times the output from August. Major domestic brands such as Guangzhou Auto, SAIC, and Geely also enjoyed a peak in September, achieving double-digit growth in sales.
According to officials from the Henan Automotive Industry Association, the overall production and sales of new energy vehicles in September and the first three quarters of the year met expectations. As the entire automotive industry adapts to the “backfill†policy shift, it has entered a stable growth phase, which will help drive the industry’s transformation and upgrading. To support this, Henan is accelerating infrastructure development, aiming to complete 1,000 centralized charging stations and 100,000 decentralized charging stations by 2020.
Despite the positive performance in September, the annual sales target of 700,000 units set at the start of the year remains unmet, with only 398,000 units sold so far. However, Guosen Securities released a report on October 16, stating that with the normalization of government procurement and subsidy lists, commercial vehicle production and sales have recovered in the third quarter. Even if passenger car sales remain flat in the fourth quarter, the growth in commercial vehicles could push the annual total to 670,000 units. The firm also noted that fourth-quarter data is typically stronger than the first three quarters, suggesting that the 700,000-unit target may still be achievable.
Multiple favorable policies are now driving the new energy vehicle sector forward, creating a new window of opportunity. The recent announcements regarding the ban on fuel vehicle sales and the implementation of the “double integration†system have further boosted market confidence. Reports indicate that the Ministry of Industry and Information Technology is researching a timeline for phasing out conventional vehicles, signaling a major shift in the industry.
Additionally, the “Measures for the Concurrent Management of the Average Fuel Consumption of Passenger Vehicle Companies and New Energy Vehicle Integration†introduced by five ministries and commissions require car manufacturers to meet specific new energy vehicle quotas. These policies aim to encourage sustainable development and long-term structural changes in the industry.
With regular updates to the list of recommended new energy models, the sector is expected to see significant growth in the coming months. In the ninth batch of recommended models, pure electric vehicles made up 110 models, with a total of 825 models announced in the first nine months of 2017—an increase of 94.6% year-on-year.
Beyond national policies, many automakers are investing heavily in innovation, aiming to gain a competitive edge. Projects like Zhengzhou Haima’s time-sharing leasing initiative and new energy vehicle construction projects in cities like Anyang and Sanmenxia are also contributing to the sector’s expansion. Combined with growing consumer demand, these developments are creating unprecedented opportunities for new energy vehicle companies.
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