AutoBeta(AutoBeta.net)02/17 Report--

Since the second half of 2018, the automobile industry has entered a downward stage, and new car sales have decreased year by year. For this reason, some first-tier cities have responded to the policy requirements of "releasing automobile consumption potential" by increasing car lottery and auction indicators and expanding the required purchase scale. In 2020, Foshan City, Guangdong Province took the lead in making adjustments to promote consumption in the automobile market. Citizens can receive a subsidy of 2000-5000 yuan for the purchase of new cars, which will be officially implemented on March 1, with a validity period of one year.

Recently, the office of Foshan Municipal people's Government issued a circular on "Foshan City's trial implementation of several measures to promote the upgrading of automobile market consumption", which aims to promote the steady growth of total retail sales of consumer goods, accelerate the transformation and upgrading of the automobile consumer market, promote automobile consumption, and better meet the travel needs of residents.

There are seven major measures in the circular, among which the first measure of "encouraging national six standard emission car consumption" is closely related to the "wallets" of consumers and automobile sales companies, and the government gives direct financial subsidies.

The specific plans are as follows:

1. Promote the upgrading of cars. The owner of Foshan license plate will give a subsidy of 3000 yuan for each car to buy a new car on the strength of the used car sales invoice or the car scrapping certificate.

two。 Encourage the collective purchase of cars. For the same consumer to buy 5 or more large, medium and heavy passenger vehicles at one time (the unit price of the vehicle is not less than 500000 yuan), a subsidy of 5000 yuan will be given to each vehicle.

3. Consumers are encouraged to buy new cars with a subsidy of 2000 yuan each.

The above-mentioned situation will not be subsidized repeatedly. Subsidy funds are applied for by consumers and distributed directly to consumers.

At the same time, in order to reduce the publicity costs of automobile sales enterprises and reduce the burden on enterprises, Foshan subsidizes the publicity expenses of automobile sales enterprises to promote consumption, which are listed in the special funds of Foshan to support the innovation and development of trade circulation, led by the Municipal Bureau of Commerce.

In addition, there are six other major items in the notice to promote car consumption. Including "simplify car registration procedures, improve service efficiency", "speed up the pollution control of diesel trucks", "promote the construction of parking facilities", "create an environment for assured consumption of cars", "improve the quality and efficiency of auto financial services" and "promote seamless convergence of vehicle tax returns and licensing".

The above measures will be implemented from March 1, 2020 and will be valid for one year.

China's auto consumption has stagnated for two years in a row. when new car sales fell 2.8% in 2018 from a year earlier, new car sales fell 8.2% in 2019 from a year earlier to 25.769 million, although they continued to remain the world's largest auto consumption market. however, it has been in negative growth for two consecutive years, which is bad for the automobile consumption environment. In 2020, under the continuous influence of the pneumonia epidemic infected by novel coronavirus, it has further led to signs of deterioration in the automobile industry, tremendous impact on production and sales, financial pressure on enterprises, and a significant decline in car demand and consumption capacity in a short period of time, which is undoubtedly adding to the hardship of the automobile industry, which is already under great downward pressure.

On February 15, Qiushi magazine published a programmatic guidance plan on the epidemic at the central level: expanding consumption is one of the important focal points for hedging the impact of the epidemic, and it is necessary to actively stabilize traditional bulk consumption such as automobiles, and encourage areas where car purchases are restricted to appropriately increase the quota of car license plates to drive the consumption of cars and related products.

It means that promoting car consumption will also be an important program at the government level in 2020. Foshan City, Guangdong Province, took the lead in taking relevant measures to accelerate the transformation and upgrading of the automobile consumer market and promote automobile consumption. Perhaps more provinces and cities will follow in the future.

It was reported that the epidemic limited car consumption in February, which is expected to break out in March, so Foshan in Guangdong Province granted subsidies for new cars in March, further boosting the city's new car consumption to some extent.

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