The provinces and cities that have taken the “save the market” are increasing.
Editor’s note: This article comes from “ Future Car Daily ” (WeChat public account ID: auto-time), author: Zhang.
Author | Zhang Yi
Edit | Li Huanhuan
For the car market in the cold winter, the emergence of the epidemic is undoubtedly worse. Therefore, local governments are introducing policies to encourage automobile consumption.
Changsha Development and Reform Commission recently announced a new policy to promote automobile consumption. From now until June 30, consumers purchase vehicles such as SAIC Volkswagen Changsha Factory, Changsha BYD, GAC Mitsubishi, GAC Fick, Hunan Cheetah and other vehicles at designated dealers. Vehicles produced by enterprises and settled in Changsha can get a one-time subsidy of 3% of the price of the bare car, and the maximum subsidy for each car does not exceed 3,000 yuan.
Affected by the epidemic, the production and sales volume of the Chinese auto market fell to the bottom in February this year. According to the latest production and sales data released by the China Association of Automobile Manufacturers (hereinafter referred to as “the China Automobile Association”), the production and sales volume of Chinese automobiles in February were 285,000 and 310,000, respectively, down 79.8% and 79.1% year-on-year. Among them, passenger car sales in February were 224,000, a year-on-year decrease of 81.7%.
The China Automobile Association said that the decline in sales in February was mainly due to the negative impact of the new coronavirus epidemic. On the production side, the output level of automobile companies was low; on the consumer side, market demand was also severely suppressed.
Cui Dongshu, secretary general of the China Federation of Transportation Associations, predicted earlier this month that if there is no strong stimulus policy at the national level, the negative growth rate of the auto market in 2020 may further increase, and retail sales are expected to decline by 8% year-on-year in 2020.
At present, the number of provinces and cities with relevant policies across the country is increasing. Foshan is the first city in the country to introduce specific measures to encourage car consumption in 2020. The city launched early this year to encourage “National Six” standard-displacement car consumption, directly giving consumers subsidies ranging from 2000-5000 yuan.
Subsequently, the Guangdong Provincial Government stated in relevant documents, “Promote conditions in prefectures and cities to introduce subsidy policies for the retirement and renewal of old cars, and encourage Guangzhou and Shenzhen to further relax car numbers and bidding quotas.” The Hunan Provincial Development and Reform Commission also stated earlier this month that it will encourage localities to support car-free families in purchasing the first home new energy vehicle, and at the same time encourage car companies and dealers to organize “automobile to the countryside” promotion activities in the province.
Since 2008, there have been four main types of automobile consumption stimulus policies implemented in China. These are reductions in purchase tax, autos going to the countryside, auto replacements and energy-saving car subsidies, all of which have played a positive role in driving auto consumption. GuoshengSecurities analysis believes that if the liberalization of purchase restrictions is considered, it is expected that the increase in forward licenses will reach approximately 700,000 vehicles, accounting for 3.24% of national sales; if the decline of new energy subsidies is postponed in 2020, it is conservatively expected to boost 100,000 this year Lightweight car sales.