What are the future opportunities for the charging pile industry and new energy vehicles?

With the popularization of new energy vehicles, the charging pile industry is regarded as a "blue ocean" by capital. Since the opening of the Chinese electric vehicle charging and swapping facilities market in May 2014, many related companies have flocked to the "track". The "blue ocean" of emerging markets has given many companies development opportunities. However, after the consolidation of 2017 and 2018, the charging pile company Rongyi Electric went bankrupt and liquidated, the "first stock" of charging piles, Fudian Green Energy, delisted, and Judian quietly withdrew. The once glorious charging pile companies have been eliminated one after another. For this reason, many charging pile manufacturers have also been under unprecedented pressure.

Welcome the "Spring" of Charging Pile Manufacturing

There is progress in stability, but there are worries in happiness. The charging pile industry has developed rapidly at the beginning, and there are also many problems in the development. However, the industry predicts that during the "13th Five-Year Plan" period, the market size of domestic charging piles "equipment + bare stations" will exceed 30 billion yuan; by 2020, the market space for charging service fees will be about 10 billion yuan; the market size of charging operation value-added services will exceed 2 billion yuan. In the future, my country's charging facility industry still has a large room for growth.

In terms of policy support, since the beginning of 2019, the governments of Hainan, Guangxi, Sichuan, Chongqing, Shantou, Zhongshan and other provinces and cities have issued electric vehicle charging infrastructure planning and subsidy implementation documents, adding support for new energy vehicles to go on the road. Looking back, in March, the state required local governments to cancel the purchase subsidies for new energy vehicles and use them to support the construction of charging infrastructure "shortcomings" and supporting operation services. The growth of demand and the increase in policy support will further promote the development of the industry. In the future, the charging pile industry is expected to usher in another "spring" of explosive development under the influence of multiple favorable factors.

According to the data from the China Automobile Association, from January to June 2019, the production and sales of new energy vehicles reached 614,000 and 617,000 respectively, up 48.5% and 49.6% year-on-year; among them, the production and sales of pure electric vehicles reached 493,000 and 490,000 respectively, up 57.3% and 56.6% year-on-year. At the same time, the Ministry of Public Security announced that as of the first half of 2019, the number of new energy vehicles in the country reached 3.44 million, accounting for 1.37% of the total number of vehicles, of which 2.81 million were pure electric vehicles, accounting for 81.74% of the total number of new energy vehicles.

It is not difficult to see from the latest data that pure electric vehicles account for more than 80% of the production, sales and ownership of new energy vehicles, occupying an absolute dominant position. The development route of new energy vehicles with pure electric vehicles as the main driving force has already taken shape, and both Chinese and foreign automakers are accelerating their layout. The strong growth of new energy vehicles is bound to provide a strong endogenous driving force for the development of the charging facility industry.

If there are electric cars, there must be charging piles. As of June 2019, the total number of charging infrastructure in China reached 1.002 million, a year-on-year increase of 69.3%. From July 2018 to June 2019, the average monthly increase in public charging piles was about 11,656, and the total number of public charging piles reached 412,000. The overall car-to-pile ratio is about 3:1. The charging facility industry is entering a healthy development stage. With the further growth of new energy vehicles in the future, charging equipment manufacturing will be a rapidly developing industry for a long time.

The “Sharp Speed ​​Model” of Innovative Development

The fittest survive and the unfit are eliminated. With the further development of the market, the competition in the charging pile market will become more and more fierce, the equipment price and business gross profit margin will decline year by year, and the market will have higher and higher requirements on the comprehensive capabilities of enterprises. Therefore, enterprises with system integration capabilities and product innovation and design capabilities will win in the market competition, and some enterprises with poor qualifications will be gradually eliminated by the market, and the industry concentration will be further improved in the future.

In general, charging equipment manufacturers have actively adjusted their solutions and started to break through technology. They no longer focus on speed over quality, but instead strive for efficiency by controlling costs, optimizing the supply system, and improving the advantages of innovative integration. The author learned from Guangzhou Ruisu Intelligent Technology Co., Ltd. that the reason why Ruisu Intelligent stands out in the fierce market competition and has pioneered the development of the "Ruisu Model" in the field of charging pile manufacturing, with an annual output of 5,000 charging facilities and a total annual rated power of 600,000KW, and maintains a high average operating rate of 17.97% is that the most important thing is the high efficiency advantage in assembly line operations, the unique supply chain system and the outstanding performance in cost control. The relevant experts of the company said:

First: Charging piles realize flexible production of assembly lines. Production line operation can not only optimize personnel allocation and reduce labor costs, but also increase production and improve work efficiency because it can reasonably organize production, standardize operations, control accurately, and standardize products. "Our charging pile assembly line production is a continuous, proportional and rhythmic production process, which achieves balanced production and greatly improves production efficiency," the production manager of Ruisu Intelligent told the author.

Second: Unique internal supply chain system. In the course of more than ten years of development, Ruisu Intelligent has accumulated rich production experience in the fields of sheet metal manufacturing and electrical processing. The main supporting components, appearance design, and assembly technology required for the manufacturing of charging piles are completed through internal collaboration. Due to the internal creation of its procurement system, whether it is procurement cost control, or improving and optimizing product performance, shortening product iteration cycles, and achieving product response speed to continuously meet market demand, it has incomparable innate advantages.

Third: Do a good job in cost control throughout the production process. Through the cost control, optimization and analysis of procurement costs, materials, logistics and transportation costs, and production links, combine cost planning beforehand, in-process control and post-analysis and assessment. Realize production cost control through monitoring during the process of production cost formation.

Ruisu Intelligence supervises the production cost formation process of the entire industrial chain (from sheet metal - electrical - finished products - cloud platform). That is, according to the production cost control standards, in the process of carrying out production operations, it conducts regular inspections, evaluations and supervision of each link in the cost formation, the implementation of cost indicators, and various conditions that affect the indicator value (such as equipment, processes, tools, workers' technical level, working environment, etc.).

Guangzhou Ruisu Intelligent Technology Co., Ltd. was established in 2006 and owns more than 30 invention patents. The company's Internet of Things New Energy Division is engaged in the customized R&D, production and sales of AC and DC charging piles. It can provide national and European standard AC charging piles, integrated DC charging piles, split charging piles, portable and wall-mounted charging piles. At present, the company has formed a long-term strategic partnership with well-known operators such as Wancheng Wanchong, Didi Xiaoju Charging, and Midea Yingfeng Environment.

As competition in the charging pile market becomes increasingly fierce, Ruisu Intelligent is becoming more and more stable and better by virtue of its first-mover advantage, technological innovation, product maturity, and cost control.

Strong alliance: build brand and expand market

Recently, Guangzhou Ruisu Intelligent Technology Co., Ltd. invested hundreds of thousands of yuan to reach a strategic cooperation with a well-known media platform in the charging facility industry, actively participated in the operation of the industry strategic synergy alliance, and at the same time played their respective advantages in industry experience, market, publicity, technical services, etc., and carried out cooperation in all aspects of the field of new energy vehicle charging piles. The two parties will play the synergy effect of business operations through the integration of industrial resources, further enhance their comprehensive strength and influence, join forces to steadily exert their strength in the market space of hundreds of millions of charging piles, and jointly promote the development of charging pile manufacturing enterprises in a benign, stable and healthy direction.

"In the future, Ruisu Intelligence will continue to leverage its own advantages and wholeheartedly provide customers with products and services that exceed value." Zhang Min, chairman of Guangzhou Ruisu Intelligent Technology Co., Ltd., said firmly. He is full of confidence in the future development of the company and the industry. "At the same time, the industry market concentration is expected to accelerate. We will continue to look for well-known companies and platforms in the industry, integrate industry resources, work together, and create China's smart manufacturing."