The policy effect of promoting consumption in the automotive market during the off-season is gradually becoming apparent
Xinhua News Agency, Beijing, September 12 (Xinhua) - The Economic Reference Daily published an article on September 12 titled "The Consumer Policy Effect of the Automobile Market's" Not Faint in the Off Season "is Gradually Revealing.". According to the article, on September 11th, the China Association of Automobile Manufacturers released data showing that in August this year, China's automobile production and sales completed 2.575 million and 2.582 million vehicles respectively, with a month on month increase of 7.2% and 8.2%, and a year-on-year increase of 7.5% and 8.4%, respectively. Driven by factors such as national consumption promotion policies and preferential promotions by car companies, production and sales continue to maintain a recovery trend, and the overall market performance is not weak in the off-season.
The sustained positive momentum of the automotive industry cannot be achieved without the cooperation and progress of various links in the industrial chain, including supply, circulation, and usage environment. This is also the direction for sustained policy efforts. The Economic Reference News reporter noticed that the country has recently introduced multiple measures to promote automobile consumption and stabilize industry growth. The Ministry of Industry and Information Technology and seven other departments have jointly released plans to promote stable growth in the automobile industry. Local governments have also launched implementation measures to increase efforts to promote automobile consumption. Industry insiders analyze that in the future, with the continuous effectiveness of policies, the foundation for stable growth in China's automobile consumption will be further consolidated, and the industry will usher in greater development space.
Liu Xu, a "new farmer" in Sanyuanzhu Village, Shouguang City, Shandong Province, has been maintaining this travel habit for three years, driving new energy vehicles to work in greenhouses during the day and charging at the village's public charging station at night. Shouguang is the birthplace of winter warm vegetable greenhouses, with a developed county economy, high income for farmers, and early adoption of new energy vehicles. In Sanyuan Zhu Village alone, there are 55 new energy vehicles in total, with an average of one vehicle per 5 households. The head of a large electric vehicle 4S store located in the urban area of Shouguang told reporters that they sold over 700 cars last year, with over 40% sold to rural areas.
Behind the growth of the market lies the optimization of supply and the improvement of the consumption environment. The overall situation of public charging stations in provinces released by the China Electric Vehicle Charging Infrastructure Promotion Alliance shows that Shandong ranks among the top 10 provinces in China with a total of 112458 public charging stations, ranking seventh in the country.
It is precisely because of the continuous optimization of the usage environment, including the construction of charging stations, that Jinan has ushered in a golden period of development for new energy vehicles in recent years. Famous domestic new energy vehicle brands such as Geely and BYD have successively taken root here.
Industry insiders have pointed out that through the situation in Shandong, it can be seen that the cumulative accumulation of positive factors such as usage environment and supply capacity has promoted the sustained growth of new energy vehicle consumption in China.
Not only have new energy vehicles performed outstandingly, but domestic automobile consumption is also showing a trend of branding and upgrading. According to data from the China Association of Automobile Manufacturers, in August this year, the domestic sales of traditional fuel passenger cars were 1.205 million units, a decrease of 104000 units from the same period last year, a month on month increase of 7%, and a year-on-year decrease of 7.9%. However, in that month, the sales of domestically produced high-end brand passenger cars reached 397000 units, an increase of 8.3% month on month and 9.9% year-on-year. Professor Ji Xuehong from Northern Polytechnical University told Economic Reference Daily that with the upgrading of domestic consumption, the demand for new energy will continue to grow.
Market demand has also become a policy driving force. Recently, the country has introduced multiple measures to promote automobile consumption and stabilize industry growth, involving multiple links such as supply, circulation, and consumption environment. Taking the "Work Plan for Stable Growth in the Automotive Industry" jointly released by the Ministry of Industry and Information Technology and seven other departments as an example, this plan proposes to improve product quality and guide enterprises to accelerate the innovative application of new technologies such as 5G information communication, vehicle road collaboration, intelligent cockpit, and autonomous driving, and develop more service functions suitable for consumers.
In terms of promoting consumption, the plan proposes that no new car purchase restrictions shall be imposed in various regions, and encourages regions with car purchase restrictions to increase a certain number of car purchase targets on the basis of the 2022 car purchase targets to further promote car consumption; Implement existing preferential policies such as vehicle and vessel tax and vehicle purchase tax for new energy vehicles.
In addition, the plan also proposes to promote the scrapping, renewal, and consumption of used cars, and optimize the circulation of cars; Optimize the usage environment of new energy vehicles by promoting the layout and construction of charging facilities, and orderly carrying out the expansion and renovation of supporting power grids.
Local governments are also introducing measures to deploy measures to promote automobile consumption from various aspects. For example, the Chengdu Municipal Bureau of Commerce has issued the Implementation Rules for Encouraging the Replacement of Traditional Energy Vehicles with New Energy Vehicles, encouraging non operational traditional energy vehicles to be replaced with new energy vehicles, with a maximum reward of 8000 yuan; Xiamen has issued a notice to encourage new energy vehicle models that are suitable for the market to expand in rural areas and enrich the supply of new energy vehicles in rural areas; Shanghai has formulated and introduced policies and measures related to revitalizing the circulation of automobiles and expanding the consumption of updated automobiles, and it is clear that a new round of subsidies for the exchange of old and used cars will be introduced.
Regarding the effectiveness of policy measures, Ji Xuehong stated that in the short term, subsidies for scrapping cars and subsidies for purchasing new energy vehicles are relatively direct measures to promote consumption, which can stimulate the release of stock consumption demand and upgrade demand; In the long run, measures such as strengthening supply, reducing restrictions on car purchases, increasing purchasing quotas for passenger cars, and facilitating the circulation of used cars can enhance supply, optimize the usage environment, facilitate the circulation of cars, and cultivate more market growth.
Under favorable policies, various car companies have also increased their pace of new product research and development. Not long ago, Didi announced that it will sell assets and research and development capabilities related to its smart electric vehicle project to Xiaopeng. Xiaopeng Motors will build an A-level smart electric vehicle based on this; At the recent Chengdu Auto Show, Feifan Automobile released the Feifan Bach cockpit digital ecosystem, supporting high-speed and seamless integration of multiple brands of mobile phones and car consoles such as OPPO, VIVO, and Xiaomi; Chery's subsidiary Xingtu Motors also unveiled a new pure electric vehicle model, the Star Era ES, at the Chengdu Auto Show, equipped with the iFlytek Spark cognitive model.
The joint efforts of all parties are expected to further consolidate the positive momentum of the market. Xu Haidong, Deputy Chief Engineer of the China Association of Automobile Manufacturers, said in response to a question from the Economic Reference Daily that under the support of consumption promotion policies, improvement of supporting service facilities, and layout of automobile enterprises, the performance of China's automobile market may be better than last year, maintaining an upward development trend and achieving relatively good growth.
Chen Shihua, Deputy Secretary General of the China Association of Automobile Manufacturers, also expects that as various policy effects continue to emerge and the automotive industry is about to enter the "golden nine silver ten" sales peak season, major automotive companies are constantly launching new products, which will help further release market demand and achieve the expected goals of economic development in the automotive industry.
