Multi link force automobile consumption market accelerates to heat up
2022-07-04
To stimulate automobile consumption, policies should be made from multiple links, which not only stabilize the increment, but also revitalize the stock. The reporter of the economic information daily noted that recently, the central government has continuously clarified the policy arrangements of restricting the relocation of second-hand cars, reducing and exempting the purchase tax, and increasing the increment index of cars, and has launched implementation measures in many places. Superimposed on the purchase tax relief and other benefits, automobile consumption accelerated to pick up in June. The industry believes that with the continuous release of the policy effect, the automobile consumption market, which accounts for 10% of the total social zero, will be effectively activated, promoting the recovery of consumption and driving the development of the whole automobile industry chain. Stabilize the increment and release the consumption demand for new cars By the end of the year, the eligibility conditions for employees' social medical insurance to apply for the increment index of energy-saving vehicles for non local registered residence personnel will be temporarily cancelled, and an additional 30000 allocation quota of increment index of energy-saving vehicles will be added from May to June, superimposed with policy red envelopes such as subsidies and purchase tax relief, which has activated the automobile consumption market in Guangzhou. 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 passenger flow in the store has increased significantly. Among them, the sales of new energy vehicles have increased by 30% year-on-year. Not only Guangzhou, but also more cities are following up. Among them, Shenzhen will add 20000 incremental indicators for ordinary cars, Shanghai will add 40000 non business passenger car license plates within the year, Hangzhou will allocate 40000 passenger car indicators to people who have wagered numbers for more than 48 times (including), and Tianjin will add 35000 incremental indicators from June to December. At present, 165000 new car purchase indicators have been added in the above five cities, 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 is possible to gradually expand incremental indicators in the future to release incremental demand. The outline of the 14th five year plan clearly states that "we should accelerate the transformation of consumer goods such as automobiles from purchase management to use management". Later, the Ministry of Commerce, the national development and Reform Commission and other departments also mentioned many times when deploying to promote automobile consumption, orderly abolishing administrative automobile purchase restrictions and encouraging the increase of indicators. Chenshihua, Deputy Secretary General of the China Association of automobile manufacturers, said that increasing the purchase index in some cities with purchase restrictions can quickly and directly form a local increase in purchase, 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." Invigorate the stock and activate the used car market While encouraging new car consumption to stabilize the increase, the policy also aims at the key links of 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 car purchased five years ago to Hebei to give the old man a contemporary walker. "I'm ready to buy another SUV with a larger space, which is suitable for the whole family to travel." Mr. Cui told reporters. Hebei recently lifted the immigration restrictions on small non operating used cars that meet the national five emission standards. On May 31, the notice of the State Council on printing and distributing a package of policies and measures to stabilize the economy was issued, which clearly abolished the policy of restricting the relocation of used cars. The reporter noted that in the next month, Hebei, Jiangsu, Tianjin, Zhejiang, Guangdong and other places have relaxed the restrictions on the relocation of second-hand cars. The adjustment of the relocation restriction policy is regarded by the industry as a major benefit to activate the second-hand car market and even revitalize the entire automobile consumption market. "The second-hand car industry has a strong source attribute. As a gathering place of high-quality car sources, the first and second tier cities were previously subject to the relocation restriction policy, and the circulation of high-quality car sources to the low line was blocked, inhibiting the release of car purchase demand." Wang Xiaoyu, co-founder and senior vice president of melon seeds used car, told the reporter of economic information daily. He believes that with the deregulation of circulation links, the efficiency of vehicle sales will be improved, which will effectively drive the sales of new and used cars. Recently, the executive meeting of the State Council made arrangements for "invigorating the used car market and promoting automobile renewal consumption", and gave a timetable for further policy arrangements in the circulation of used cars, such as the abolition of relocation restrictions, separate endorsement management, and the issuance of temporary license plates. Chen Lifen, a researcher at the market economy Research Institute of the development research center of the State Council, told the reporter of the economic information daily that the second-hand car transaction has exceeded the scale of trillion yuan, and the optimization of key links such as the abolition of the relocation restriction of second-hand cars will accelerate the formation of a pattern of mutual promotion between the consumption of second-hand cars and the consumption of new cars. Activate the automobile consumption market through multiple links Fu Yifu, a senior researcher at the Xingtu Financial Research Institute, told the reporter of the economic information daily that the output value of the automobile manufacturing industry accounted for about 10% of GDP and the retail sales of automobiles accounted for about 10% of the total social zero. "Stimulating the potential of automobile consumption in multiple links will have a significant driving effect on the recovery of consumption and the development of the whole 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 positively driving the zero growth rate of social security by 1.2 percentage points. The growth rate of automobile retail sales in May was -16%, dragging down the zero growth rate of social security by 1.6 percentage points. "In other words, car consumption alone will drive the decline of social security zero growth rate in June, which is about 3 percentage points narrower than that in May." Zhang Yu said. "With the gradual reduction of the impact of factors such as the epidemic and chip shortage, as well as the promotion of many favorable policies, the blocking point of automobile consumption has been cleared, the driving force of consumption growth has been enhanced, and the overall consumption level has rebounded." Chen Lifen said that the implementation of the policy is expected to increase automobile and related consumption by about 200billion yuan this year, which will effectively boost consumer confidence and promote the recovery of consumption. In the long run, more arrangements such as "changing from purchase management to use management", "improving the parallel import policy of automobiles" and "studying the extension of the policy of Exempting the purchase tax of new energy vehicles after 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 at present, eight large cities across the country have implemented license quota management, and calculation data show that the pent up consumer demand for cars is at least 5million. If 1million car licenses are added every year, consumption will increase by more than 100 billion yuan and the growth rate of the consumer market will increase by 3 percentage points. According to Fu Yifu's analysis, the automobile industry chain is extremely long, involving raw material industry, equipment manufacturing industry, supporting product industry and other fields, integrating a large number of high and new technologies. Therefore, boosting automobile consumption can also drive technological progress and industrial upgrading to a large extent. (Xinhua News Agency)
Edit：He Chuanning Responsible editor：Su Suiyue
Source：Economic Information Daily
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