The "promising future" of the charging pile market is mixed and the company's profitability needs to be solved.

    In recent years, with the State Grid Power Supply Company continuously pushing forward the development of electric vehicle infrastructure, the construction of charging stations has entered an unprecedented and favorable phase. According to data from Zhiyan Consult and Forecast, a well-known domestic market research firm, by 2020, the charging equipment market is expected to reach 84.8 billion yuan, while the operational services market could hit 128.3 billion yuan. For the bus industry, the deployment of charging piles is also accelerating. Most bus companies have already equipped their fleets with charging stations to ensure smooth operations. The State Council’s “National Thirteenth Five-Year Plan for Strategic Emerging Industries Development” aims to achieve 2 million new-energy vehicle sales and over 5 million total units by 2020. Additionally, the “13th Five-Year Plan for Energy Development” forecasts that China will add more than 12,000 centralized power stations and over 4.8 million distributed charging stations by 2020. This growth is expected to push the charging facilities market beyond 100 billion yuan. Despite this rapid expansion, the charging station industry faces challenges in profitability. While the sector has seen significant investment and policy support, many companies are struggling to turn a profit. The high costs of maintenance, low utilization rates, and inefficiencies in operation have created a difficult environment for operators. To address these issues, the government has increased subsidies for charging infrastructure, encouraging further development. According to the “Guidelines for the Development of Electric Vehicle Charging Infrastructure (2017-2022),” the goal is to build 12,000 centralized stations and 4.8 million distributed ones by 2020. As of October 2017, there were already 195,000 public and 188,000 private charging stations across the country. Industry experts believe the market will exceed 100 billion yuan in scale. Major players like BMW and Suning are investing heavily in expanding their charging networks. BMW plans to install 6,000 charging stations in China, while Suning has partnered with several charging service providers to create a shared network with nearly 5,000 stations. Didi is also working on a nationwide "pile network" called “Small Orange Charge,” aiming to integrate electric vehicle charging and replacement systems by 2020. However, the market remains fragmented, with many underutilized or poorly located stations. Operators face issues such as unclear business models, inconsistent charging standards, and user dissatisfaction due to problems like incompatible charging cards and long queues. These challenges have led to financial losses for some companies, despite growing demand for electric vehicles. Looking ahead, the charging pile industry needs to explore sustainable business models. Revenue currently comes mainly from charging fees and government subsidies, but new opportunities are emerging. Operators can generate additional income through advertising on charging stations, offering online services, and integrating with car dealerships. Expanding private charging pile sharing and building a connected network of public, private, and commercial stations could help unlock new value. Ultimately, the charging infrastructure market still requires time to mature. It needs continued investment, innovation, and collaboration between the government and private sector to establish a healthy, competitive, and sustainable ecosystem. Only then can the full potential of electric mobility be realized.

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