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Recently, the people's Government of Sichuan Province issued a circular on printing and issuing a number of policies and measures in Sichuan Province to support the development of new energy and smart car industry. The notice provides policy guidance and specific incentives for the development and promotion of new energy passenger vehicles, passenger cars, trucks, hydrogen fuel cell vehicles, as well as new energy and smart extraction industry research and development projects in the province.

Specifically, the notice encourages the research and development of advanced new products. For the new energy passenger cars, buses, trucks and hydrogen fuel cell vehicles newly developed by enterprises in the province, it has entered the newly released model of the catalogue of recommended models for the Promotion and Application of New Energy vehicles of the Ministry of Industry and Information Technology, and the sales volume has reached 1000, 200,500,50 respectively within one year after entering the catalogue. The development and production enterprises will be given an one-time reward according to 1 million yuan for each model, and the maximum reward for a single enterprise shall not exceed 5 million yuan.

In addition, the notice also supports vehicle enterprises in the province to improve product quality and expand sales. If the annual sales of new energy passenger cars, trucks and passenger cars reach 10000, 5000 and 3000 respectively, and the annual sales increase by more than 10% over the same period last year, an one-time reward of 0.5% of sales will be given, and the maximum reward for a single enterprise shall not exceed 10 million yuan.

Domestic car sales rose 11.6 per cent to 2.186 million in September 2020, while cumulative sales fell 9.7 per cent to 14.551 million from January to August, according to the China Automobile Association.

Although the current environment of the domestic market is still not optimistic, the changes in the data all show that the situation of the automobile industry continues to improve, and the successive policies to stimulate automobile consumption in various places are conducive to boosting consumers' confidence in buying cars. In addition, the comprehensive launch of new products from enterprises at the Beijing Auto Show, superimposed by the demand brought about by the Mid-Autumn Festival National Day and other long holidays, will further boost automobile consumption.

In this context, new energy vehicles also return to the normal growth trend. Sales of new energy vehicles rose 25.8 per cent to 109000 in August 2020, while cumulative sales fell 26.4 per cent to 596000 from January to August.

However, even so, the total sales of new energy vehicles this year may not be the same as last year. According to Xu Haidong's forecast, if Tesla's sales are added, the sales of new energy vehicles this year are only about 1.1 million, which is still a long way from the annual sales figure of more than 1.2 million last year.

For automobile enterprises, aiming at different markets, constantly adjusting their strategies and launching suitable products will have more possibilities for development, and if they rely on subsidies and the market to determine product sales, then they also need to bear greater operational risks.

Attached below is the Circular of the people's Government of Sichuan Province on Printing and issuing some policies and measures of Sichuan Province to support the Development of New Energy and Intelligent Automobile Industry

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