Chinese auto market in this year is likely to experience the first negative growth since 1990. From January to October, the total sales of automobiles is 22.87 million units, down 0.1% year-on-year; in October, it fell 11.7% year-on-year, the largest monthly decline since 2012.

At the same time, however, the new energy auto industry has gone against the market, not only has sales soared, but also poured into dozens of new companies in just one or two years.

Among them, Weilai Automobile was founded in 2014 and is headquartered in Shanghai. In just four years, it has set up R&D, design, production and business institutions in San Jose, Munich, London, Shanghai and other 13 cities, assembled thousands of the world's top industry talent in automotive, software and user experience.

In the same year, Xiaopeng Automobile was founded in Guangzhou. Also in four years, it established R&D and production centers in Silicon Valley, Guangzhou, Beijing, Shanghai, Zhaoqing, Zhengzhou and other cities, and assembled more than 3,000 top talents from different cities, 60% of which are R&D personnel.

In the downtrend of global automotive industry, domestic new energy vehicles are experiencing explosive growth. In the first three quarters of 2018, under the policy incentives, the production and sales of new energy vehicles were 734,600 and 721,500 respectively, up 73.05% and 81.05% respectively. By 2020, the sales of new energy passenger vehicles in the Chinese market are expected to be broken through 1.8 million vehicles.

The rapid development of China's new energy auto industry is inseparable from the state's policy support. Before 2016, the central government allocated a total of 33.44 billion yuan in subsidies for new energy vehicles. On May 25, 2018, the Ministry of Industry and Information Technology confirmed that new energy auto companies should value a total of about 18.972 billion yuan of subsidy funds in the 2016 and 2017, and the total subsidies totaled 52.4 billion. In addition to the direct subsidies, exemption purchase tax and license preferential policies also provide consumers with more reasons to choose new energy vehicles.

As mentioned above, it is obvious that the business environment of new energy auto in China has advantage on the large extent.