Will a new round of price war for automobiles make a comeback?, A wave of subsidies for car purchases in multiple regions | Shenzhen | Automobile
When the Guangdong Hong Kong Macao Greater Bay Area Auto Show was held at the Shenzhen Convention and Exhibition Center this year, Futian District in Shenzhen launched a new car purchase subsidy.
Starting from June 16th, individual consumers can apply for car purchase subsidies ranging from 5000 yuan to 15000 yuan from car dealerships included in the statistics of retail businesses above the quota in Futian District. The total amount of car purchase subsidies for this event is 30 million yuan, and the total amount is controlled according to the order of application, first come, first served, and ends when used up. As of now, Futian District has held two rounds of car purchase subsidy activities this year, with a total subsidy amount of 80 million yuan.
Not only Futian District in Shenzhen, but also Nanshan District in Shenzhen has launched the second round of car purchase subsidy activities this year. Starting from June 14th, following the first round of distributing a cash car purchase subsidy of 100 million yuan, the second round of activities in Nanshan District, Shenzhen continued to increase, with a 50% increase in the amount distributed compared to the first round. The total subsidy amount reached 150 million yuan, with cash subsidies ranging from 5000 yuan to 33000 yuan per transaction.
Starting from June 9th, Longgang District in Shenzhen also announced that it will provide car purchase subsidies and insurance premium subsidies with a total amount not exceeding 50 million yuan.
Apart from Shenzhen, since June this year, many parts of the country have once again seen a wave of car purchase subsidies.
On June 12th, Jinan Huaiyin District will allocate 2 million yuan of special funds to subsidize consumers in the form of consumption vouchers for automobile companies in its jurisdiction.
Starting from June 6th, Nanjing announced a subsidy for automobile retail enterprises above the quota to purchase new non operational passenger cars with less than 7 seats. Individual consumers can receive a one-time subsidy of 1000-5000 yuan, with a total subsidy of 35 million yuan for automobile consumption. On the same day, Xiqing District of Tianjin announced the launch of the 2023 automobile consumption promotion activity, with subsidy funds of up to 10 million yuan, and bicycle subsidies ranging from 1000 to 4000 yuan.
Starting from June 3rd, the third round of car purchase subsidies in Xihu District, Hangzhou, with a total amount of 15 million yuan, will also be issued, with a maximum subsidy of 10000 yuan for bicycles.
As the backbone of the national economy, the automobile industry accounts for about 10% of China's GDP, and automobile consumption is the main lever for stabilizing the economy. The recovery of the automotive industry plays an indispensable role in stabilizing the overall macroeconomic situation.
In early March of this year, the news that some models of Dongfeng Citroen had a discount of up to 90000 yuan after comprehensive government and enterprise subsidies quickly swept through the automotive industry. This wave of subsidies planned by local governments and car companies, like a catfish, quickly triggered follow-up from other regions and companies. Subsequently, many regions issued subsidy policies to stimulate automobile consumption.
Recently, a person in charge of the Shenzhen Municipal Bureau of Industry and Information Technology introduced that Shenzhen has organized the implementation of a new energy car consumption subsidy policy, providing classified subsidies for consumers to purchase new energy vehicles based on the standard of 5000 to 20000 yuan/vehicle. So far, a subsidy of 450 million yuan has been issued, and there are still more than 40 million yuan of subsidies to be issued. More than 65240 new energy vehicles were subsidized, with local car brands accounting for over 60%, driving car consumption of over 10 billion yuan and driving a 9.9 percentage point increase in car sales.
However, it is worth noting that the event of joint subsidies from government and enterprises has also sparked the hottest car "price war" this year. The intensification of disorderly competition has also caused car companies and dealers to complain incessantly, falling into a vicious cycle of "only sales, no profit".
According to data from the National Bureau of Statistics, from January to April 2023, the revenue of China's automotive industry reached 2860.9 billion yuan, a year-on-year increase of 12%; The cost is 250.1 billion yuan, a year-on-year increase of 12%; The profit was 112.3 billion yuan, a year-on-year increase of 3%, and the profit margin of the automotive industry was 3.9%. Compared to the profit margin of 4.9% for the entire industrial enterprise, the automotive industry is still relatively low. In 2022, the overall profit margin of the automotive industry was 5.7%.
