With the improvement of consumers' requirements for automobile quality and the diversification of overall demand, China's automobile market has entered a diversified and personalized development stage, and the upgrading speed of automobile products has begun to accelerate. At the same time, the electric and intelligent transformation that the automobile industry is currently experiencing has not only reconstructed the ecosystem of the industrial chain, but also formed a huge market space, which has become a powerful anchor to drive the economy. Intensive introduction of policies to promote automobile consumption The good news of the automobile market can be described as continuous. On June 22, the executive meeting of the State Council stressed the need to further release the consumption potential of cars from three aspects: first, activate the second-hand car market, promote the renewal and consumption of cars, completely cancel the immigration restrictions on small non operating second-hand cars from August 1, and implement separate endorsement and issuance of temporary number plates for transfer registration from October 1; Second, support the consumption of new energy vehicles. The vehicle purchase tax should be mainly used for highway construction. Considering the current reality, study the extension of the policy of exempting new energy vehicle purchase tax; Third, improve the parallel import policy and support the construction of parking lots. It is generally believed in the industry that this is a further refinement of the previously issued policy to promote automobile consumption. Prior to this, the State Council issued the "opinions of the general office of the State Council on further releasing consumption potential and promoting the sustainable recovery of consumption" on April 25, proposing that all regions should not add new measures to restrict the purchase of automobiles, gradually abolish restrictions on the purchase of automobiles according to local conditions, and promote the transformation of automobile and other consumer goods from purchase management to use management; Establish and improve the management mechanism of automobile refitting industry and speed up the development of automobile aftermarket; We will completely abolish the policy of restricting the relocation of used cars, study further easing the restrictions on pickup trucks entering cities, and support the accelerated development of new energy vehicles. Subsequently, the executive meeting of the State Council on May 23 again proposed to reduce the purchase tax of some passenger cars by 60billion yuan. Then, the Ministry of Finance and the State Administration of Taxation issued the announcement on reducing the purchase tax of some passenger cars on May 31, proposing to halve the vehicle purchase tax on passenger cars with a displacement of 2.0 liters or less whose purchase date is from June 1, 2022 to December 31, 2022, and whose single vehicle price (excluding value-added tax) does not exceed 300000 yuan. Under the background of the intensive introduction of policies to promote automobile consumption by many national ministries and commissions, many places have also introduced their own automobile consumption support policies. For example, Beijing has proposed that scrapped or transferred vehicles will receive 8000 yuan or 10000 yuan subsidies to replace new energy vehicles; Shenzhen will provide subsidies of up to 20000 yuan / set to the successful bidders who purchase new energy vehicles; Nanchang launched the issuance of automobile consumption vouchers, and consumers can get a consumption red envelope of 5000 yuan per new energy vehicle. Thanks to the strong support of national policies and the active promotion of local governments, the domestic automobile market has shown a rapid recovery trend recently. According to the latest data released by the Federation of passenger cars, the average daily retail sales of cars in the first and second weeks of June were 34000 and 50000 respectively, with a month on month increase of 7% and 54% respectively. The retail end of the car market recovered significantly, which shows that the policy stimulus effect is significant. For the automotive consumer market, many institutions also expressed long-term optimism. Cinda Securities believes that, stimulated by the "resumption of work and production + policy cycle", the turning point of the automotive industry has arrived, and it is expected to gradually enter the stage of booming supply and demand from June. The growth rate of automotive production and sales is expected to continue to rise in the second half of the year, superimposed on the price of raw materials or gradually stabilize and fall, and the profit margin and roe of the automotive sector are expected to reverse upward. Shanxi securities also believes that considering that a series of consumption stimulus policies began to be implemented in June and are optimistic about the growth of industry production and sales in the second half of the year, the auto sector is expected to usher in a golden investment period of rising profits and valuations. Deeply tap the potential of automobile consumption in three aspects For China's auto market, 2022 is the key year to stabilize and recover, and the development of new energy vehicles is undoubtedly the top priority. According to the data of China Automobile Association, the sales volume of new energy vehicles nationwide reached 3.521 million in 2021, with a year-on-year increase of 157.5%. From January to May this year, the cumulative sales of new energy vehicles exceeded 2million, an increase of 111.2% year-on-year, and the penetration rate reached 21%. It can be seen that releasing the consumption potential of cars, especially new energy vehicles, has become an important driving force to push the economic operation back on track. The industry believes that the rapid development of the new energy vehicle market in recent years has been driven by policy support. The executive meeting of the State Council clearly stated that considering the current reality, it was "studying the policy of exemption from the purchase tax of new energy vehicles". As soon as the news came out, auto stocks immediately rose, and market confidence was further boosted. In fact, the purchase tax preference has always played an active role in the policy "toolbox" of stimulating automobile consumption. As early as 2009, the state implemented preferential policies for the purchase tax of passenger cars with a displacement of 1.6 liters or less for the first time, which significantly increased the growth rate of car sales from 4.6% in 2008 to 45.5% in 2009; From October 2015 to December 2017, in order to stimulate the domestic automobile consumption market, the preferential policies of purchase tax reduction and exemption were introduced again, which greatly boosted automobile consumption, making the growth rate of automobile sales from 2015 to 2017 reach 4.6%, 13.5% and 3.6% respectively, maintaining a rapid growth rate for three years. In the field of new energy vehicles, with the sharp decline of car purchase subsidies, the purchase tax exemption policy has become the main force to boost the new energy vehicle market. Cuidongshu, Secretary General of the Federation of passenger trains, said that at this stage, both the car purchase subsidy and the preferential range of car enterprises are generally not high. The previously neglected purchase tax exemption policy will play an important role in stimulating car consumption. It is noteworthy that the further improvement of the parallel import policy has also stimulated part of the domestic demand for cars. It is understood that domestic imported cars are divided into parallel imported cars and medium gauge cars. Compared with medium-sized models, parallel imported vehicles have richer configurations and more affordable prices, which are favored by many consumers. However, since the full implementation of the national six emission standards, the development of the industry once faced challenges due to the non authorized particularity of parallel imported vehicles, the differences between domestic and foreign standards, and the difficulty in obtaining core data. Cui Dongshu said that the new deal simplifies the circulation of parallel imported vehicles, "helping to solve the key problems faced by the development of parallel imported vehicles as soon as possible and further accelerate the market recovery." In addition to encouraging new car consumption, how to revitalize the stock market has also been put on the agenda. At present, China's automobile market has changed from "increment" to "stock", automobile consumption has also entered the era of exchange purchase, and second-hand car market transactions have also become one of the driving forces driving the increment of the automobile market. However, the domestic used car industry has developed so far, but its market operators have not yet got rid of the situation of "small, scattered and weak". The shackles are mainly due to the "three mountains" recognized by the industry as obstructing the circulation of used cars - the restrictions on the relocation of used cars, the restrictions of taxation methods and the absence of temporary property registration. Taking the relocation restriction policy as an example, due to the different implementation standards in various regions in the past, and the extremely complex filing and settlement procedures, the outflow and immigration of used cars between regions are greatly limited. On the one hand, it leads to the scarcity of second-hand car sources in the limited relocation areas and the deviation between the vehicle valuation and the actual market value; On the other hand, the relocation restricted areas have gradually formed the regional supply and demand characteristics dominated by "sellers", and the resources can not be completely matched, thus hindering the transformation of the used car industry to large-scale operation. Shen Jinjun, President of the China Automobile Circulation Association, said that the implementation of policies such as the reform of value-added tax on second-hand cars, the abolition of restrictions on relocation, and the restoration of the attributes of second-hand cars meant that all the blockages that had hindered the circulation of second-hand cars in the past decade or so had been cleared up. Next, China's second-hand car market will usher in a big explosion, "once the policy is implemented and well implemented, in the next one to two years, China's second-hand car trading volume will reach or exceed the sales volume of new cars." Automobile consumption boosts market confidence Why does the industry attach so much importance to automobile consumption? This is because driving car consumption is an important means to boost market confidence. Huang Zhengxue, a researcher at the Institute of land development and regional economics of the Chinese Academy of macroeconomics, believes that the continuous release of consumption potential is crucial to the economic recovery, but to stimulate the economy needs to find a strong anchor, and promoting automobile consumption is one of the important choices. In his view, due to various constraints and scale constraints, home appliance consumption and real estate consumption are still difficult to pry the consumer market on a large scale, while automobile consumption is more operable in terms of scale, policy and demand. The essence of the continuous promotion of automobile consumption by the state is to use the policy of "four or two thousand pounds" to identify the starting point of the market and leverage a larger scale of consumption. After all, automobile consumption has a high correlation, which plays a huge driving role in the automobile industry chain and the business activities and employment related to the automobile industry. For a long time, automobile manufacturing has been known as the crown of modern industry, involving many industrial manufacturing categories. A car can be assembled out of the factory, relying on tens of thousands of parts produced by thousands of large and small supporting enterprises in the whole industrial chain. Take a pure tram as an example, the 1000 parts assemblies it needs are mainly supplied by more than 200 primary suppliers, and behind each primary supplier there are many lower level suppliers. Therefore, only when the whole supply chain forms a closed loop can automobile production be realized, and any level of suppliers in the supply chain are indispensable. At the same time, the huge demand of the market will also accelerate the operation of the entire automobile manufacturing industry chain, and drive the synchronous development of related industries such as logistics and transportation, automobile insurance, etc., so as to form a virtuous economic cycle. In addition, automobile is an optional consumption with a large amount of monomer, and the automobile industry itself is a huge market. With the improvement of Chinese consumers' requirements for automobile quality and the diversification of overall demand, China's automobile market has entered a diversified and personalized stage of development, and the upgrading speed of automobile products is also accelerating. For the industry, the electric and intelligent changes it is currently experiencing are market opportunities that cannot be ignored. In this regard, Wang Cheng, senior engineer of China Automotive Technology Research Center, said that the automotive industry is accelerating the transformation to new energy and intelligence, and the new industrial chain links have brought greater development space. At the same time, the deep integration of 5g, artificial intelligence, big data and other new technologies with the automotive industry will lead to the reconstruction of the automotive ecological chain, and the alternation of old and new models will inevitably bring new development opportunities. Fu Bingfeng, executive vice president of China Association of automobile industry, also believes that the competition in the automobile industry has entered a new track, and the new industrial chain ecology will also form a huge market space. In this critical stage of development, independent brands need to strengthen the innovation of core technologies and the control of key resources, strive to break the bottlenecks, breakpoints and blockages of the supply chain, and strive to create a new ecosystem of the industrial chain. (Xinhua News Agency)