AutoBeta(AutoBeta.net)03/30 Report--

On March 29, the Commerce Bureau of Changchun City, Jilin Province issued the guidance on promoting consumption in the field of commerce and trade in the near future. Among them, in promoting automobile consumption, Changchun has launched a number of policies to encourage automobile consumption, including subsidies for car purchases, more targeted credit policies, and simpler testing, reporting and licensing services, as well as greater support for carrying out thematic car sales activities and corporate advertising.

Specifically, Changchun encourages consumers to buy new cars and buy cars produced in Changchun and sold in the province. Each car is given an one-time subsidy of 3% of the purchase price, up to a maximum of 4000 yuan. Replacement car purchase is also subsidized. Jilin license plate owners will give an one-time subsidy to new cars produced in Changchun and sold in the province on the basis of the invoices for the sale of used cars or the cancellation certificate of car scrapping from March 20 to June 30, 2020, up to a maximum of 5000 yuan.

It is worth mentioning that if the group purchase of new cars, then the subsidy is even greater, one-time purchase of 5 or more new cars produced in Changchun and sold in the province (the unit price of the vehicle is not less than 200000 yuan), shall be given an one-time subsidy, each up to 6000 yuan. The above policies will not be superimposed as of June 30, 2020.

In order to boost car sales, a number of national departments have put forward policies to encourage car consumption since February this year. According to incomplete statistics, nine cities have introduced automobile consumption policies such as subsidies for car purchases and loosening car purchase restrictions, including Foshan, Guangzhou and Zhuhai in Guangzhou, Xiangtan and Changsha in Hunan Province, Hangzhou and Ningbo in Zhejiang Province, Nanchang City in Jiangxi Province and Changchun City in Jilin Province.

On March 30, Xin Guobin, vice minister of the Ministry of Industry and Information Technology, said that since February 19, the overall operating rate of enterprises in the automobile industry has increased from about 60% to 97%, and the employee reinstatement rate has increased from about 50% to 82%. The overall rate of achievement has been at the same level as in the same period last year.

Xin Guobin pointed out that with the joint efforts of all parties, since February 19, the overall operating rate of enterprises in the automobile industry has increased from about 60% to 97%, and the employee reinstatement rate has increased from about 50% to 82%. The overall rate of achievement has been at the same level as in the same period last year. However, as far as the automobile industry is concerned, it is still facing great difficulties and problems, especially the problem of sluggish consumer demand, even though the rate of return to work is relatively high, due to the lack of market demand and the increase of enterprise inventory, it is possible that in the follow-up period of time, the yield of some enterprises will be further reduced.

According to the data previously released by the Federation of passengers, the average daily retail sales in the first week of March was 16700, down 50% from the same period last year; 21700 in the second week of March, down 44% from the same period last year; and 25800 in the third week of March, down 40% from the same period last year. The average daily sales in the first 22 days was 21200, down 45% from the same period last year.

With the gradual relaxation of the epidemic situation, China's automobile market began to recover. At the same time, as the epidemic continues to spread around the world, most car companies and parts suppliers have announced the suspension of production and production, which actually has an impact on Chinese car sales.

According to foreign media reports, Moody's, a well-known international credit rating agency, has once again slashed its forecast for global car sales in 2020. It is expected that global car sales will fall by 14% in 2020, much higher than the previous estimate of about 2.5% in February. In addition, car sales in China, the world's largest single market, are expected to fall by 10 per cent in 2020, more than the 2.9 per cent decline previously forecast.

Although the downward trend is inevitable, with the continuous introduction of car purchase and replacement subsidy policies by local governments, as well as the recovery of the automobile consumer market, the domestic automobile production and sales situation will pick up rapidly, and the automobile industry will also be on the right track.

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