To stimulate automobile consumption, policies have been exerted from multiple links, which not only stabilized the increment, but also revitalized the stock. A reporter from the Economic Information Daily noted that recently, the central government has continuously clarified policy arrangements such as restrictions on the relocation of used cars, reduction and exemption of purchase tax, and increased vehicle increment indicators, and implementation measures have been launched in many places. Superimposed on the benefits of purchase tax reduction and exemption, auto consumption accelerated in June.
The industry believes that with the continuous release of policy effects, the automobile consumption market, which accounts for 10% of the total retail sales, will be effectively activated, promote the recovery of consumption, and drive the development of the entire automobile industry chain.
Stabilize the increment to release new car consumption demand
Before the end of the year, the eligibility conditions for employees who are not registered in the city to apply for the incremental indicators of energy-saving vehicles will be temporarily cancelled, and an additional 30,000 incremental indicators of energy-saving vehicles will be added from May to June. The red envelope has activated the Guangzhou automobile consumer market.
The person in charge of a new energy vehicle sales store in Guangzhou told reporters that since May, citizens’ enthusiasm for buying cars has gradually increased, and the store’s passenger flow has increased significantly. Among them, new energy vehicle sales have increased by 30% year-on-year.
Not only Guangzhou, but more cities are following suit. Among them, Shenzhen will add 20,000 incremental quotas for ordinary cars, Shanghai will add 40,000 non-commercial passenger car license plates within the year, and Hangzhou will allocate 40,000 cars to people who have accumulated more than 48 lottery times (inclusive) at one time. For passenger car indicators, Tianjin added 35,000 incremental indicators from June to December.
The above five cities currently have 165,000 new car purchase indicators, which is conducive to accelerating the release of automobile consumption demand. However, the analysis also pointed out that the number of new indicators is still limited, and it may be possible to gradually expand incremental indicators in the future to release incremental demand.
The outline of the “14th Five-Year Plan” clearly states, “Accelerate the transformation of consumer goods such as automobiles from purchase management to use management.” Since then, the Ministry of Commerce, the National Development and Reform Commission and other departments have also mentioned many times when deploying to promote automobile consumption, orderly canceling administrative restrictions on automobile purchases, and encouraging increased quotas.
Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, pointed out that the increase in car purchase indicators in some purchase-restricted cities can quickly and directly form an increase in local purchases, and the effect is very obvious. “We hope that cities that have not yet introduced relevant measures will increase some car purchase indicators as soon as possible.”
Revitalize the stock and activate the second-hand car market
While encouraging the consumption of new cars to stabilize the increase, the policy also targets key links in the circulation of the used car market to further revitalize the stock.
Mr. Cui from Beijing is going through the formalities to transfer a Beijing-brand fuel vehicle purchased five years ago to Hebei, and use it as a scooter for the elderly. “The freed up target is to buy another SUV with a little more space, which is suitable for the whole family to travel.” Mr. Cui told reporters. Hebei recently abolished the move-in restrictions on small, non-operating used cars that meet the National V emission standards.
On May 31, the “Notice of the State Council on Printing and Distributing a Package of Policies and Measures to Consolidate and Stabilize the Economy” was released, clearly and comprehensively canceling the policy of restricting the relocation of used cars. The reporter noticed that in the following month, Hebei, Jiangsu, Tianjin, Zhejiang, Guangdong and other places have relaxed restrictions on the relocation of used cars.
The adjustment of the relocation restriction policy is regarded by the industry as a major positive for activating the used car market and even revitalizing the entire automobile consumer market.
“The used car industry has a strong vehicle source attribute. First- and second-tier cities are the gathering places for high-quality car sources. Previously, due to the restriction policy, the circulation of high-quality car sources to low-tier vehicles was hindered, which inhibited the release of car purchase demand.” Guazi Used Car Co-founder and senior Vice President Wang Xiaoyu told the “Economic Information Daily” reporter. He believes that with the loosening of the circulation link, the efficiency of vehicle sales will be improved, which will effectively boost the sales of new and used cars.
Recently, the executive meeting of the State Council made arrangements for “activating the used car market and promoting automobile renewal consumption”, and gave a timetable for further policy arrangements for second-hand car circulation such as the cancellation of relocation restrictions, separate endorsement management, and issuance of temporary license plates.
Chen Lifen, a researcher at the Market Economic Research Institute of the Development Research Center of the State Council, told the Economic Information Daily that the used car transaction has exceeded one trillion yuan, and the optimization of key links such as the removal of used car restrictions will accelerate the formation of a cycle of used car consumption and new car consumption. Mutual promotion pattern.
Multi-link efforts to activate the automotive consumer market
Fu Yifu, a senior researcher at Xingtu Financial Research Institute, told the “Economic Information Daily” that the output value of the automobile manufacturing industry accounts for about 10% of the GDP and the retail sales of automobiles account for about 10% of the total retail sales. “Multiple links stimulate the potential of automobile consumption, which will have a significant driving effect on the recovery of consumption and the development of the entire automobile industry chain.”
Zhang Yu, chief macro analyst of Huachuang Securities, said that the growth rate of auto retail sales in June is expected to be 12%, which is driving the zero growth rate of the company by 1.2 percentage points. The growth rate of auto retail sales in May was -16%, dragging down the zero growth rate of the company by 1.6 percentage points. “That is to say, the consumption of automobiles alone will drive the decline in social zero growth rate in June to narrow by about 3 percentage points compared with May.” Zhang Yu said.
“With the gradual reduction of the impact of factors such as the epidemic and shortage of chips, as well as the promotion of many favorable policies, the congestion point of automobile consumption has been cleared, the consumption growth momentum has been strengthened, and the overall consumption level has rebounded.” Chen Lifen said that the implementation of the policy is expected to increase the number of automobiles and related industries this year. Consumption of about 200 billion yuan will effectively boost consumer confidence and promote consumption recovery.
In the long run, more arrangements such as “transition from purchase management to use management”, “improvement of the parallel import policy of automobiles”, and “study on the extension of the new energy vehicle purchase tax policy that expires at the end of the year” will continue to activate the domestic automobile consumption market.
Taking the relaxation of purchase restrictions as an example, Chen Lifen said that currently eight large cities across the country implement license plate quota management. According to estimates, the pent-up consumer demand for automobiles is at least 5 million. If 1 million new vehicle license plates are added every year, it will increase consumption by more than 100 billion yuan and increase the growth rate of the consumer market by 3 percentage points.
According to Fu Yifu’s analysis, the automobile industry chain is extremely long, involving many fields such as raw material industry, equipment manufacturing industry, supporting product industry, etc., integrating a large number of high-tech. Therefore, boosting automobile consumption can also drive technological progress and industrial upgrading to a large extent.
Source: Economic Information Daily
Editor: Fu Jianqing
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