AutoBeta(AutoBeta.net)11/19 Report--

Affected by the epidemic, the domestic automobile market suffered a great impact in 2020. In February this year, the programmatic guidance program on the epidemic situation at the central level pointed out that 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, so as to drive the consumption of cars and related products.

Under the policy stimulus and market promotion, the domestic automobile market has recovered quickly over the past few months. According to the China Automobile Association, automobile production and sales completed 2.552 million and 2.573 million respectively in October, up 0.9 per cent and 0.1 per cent respectively from the previous month, and 11.0 per cent and 12.5 per cent respectively over the same period last year. As of this month, automobile production and sales have increased for seven consecutive months, of which sales have maintained a growth rate of more than 10 percent for six consecutive months.

From January to October, automobile production and sales completed 19.519 million and 19.699 million respectively, down 4.6% and 4.7% respectively from the same period last year, and continued to narrow the rate of decline by 2.1 and 2.2 percentage points compared with January-September. However, there are still great challenges for the auto market to return to positive growth throughout the year.

To stabilize the market and expand consumption. On November 18, Premier Li Keqiang presided over an executive meeting of the State Council, which made arrangements to boost key consumption of bulk consumption and promote the release of rural consumption potential.

The National standing Committee will make new arrangements for boosting major and key consumption, such as cars, home appliances, furniture, catering, tourism, and so on. For example, in the field of automobile, it is required to stabilize and expand automobile consumption. All localities are encouraged to adjust and optimize purchase restrictions and increase license plate targets.

The meeting also proposed that it is necessary to carry out a new round of cars to the countryside and trade in clunkers for new ones, encourage qualified areas to buy trucks of 3.5 tons or less and passenger cars with engines of 1.6 liters or less, and subsidize residents to eliminate cars with emission standards of country 3 and below and buy new ones. Strengthen the construction of parking lots, charging piles and other facilities.

In April this year, the National Development and Reform Commission issued a notice on stabilizing and expanding automobile consumption. At that time, it was proposed to improve the fiscal and tax support policies related to the purchase of new energy vehicles, speed up the phase-out of obsolete diesel trucks, smooth the circulation of used cars, and so on.

This time, the National standing Committee's policies to boost automobile consumption are more focused on rural consumption, such as carrying out a new round of cars going to the countryside and exchanging old for new ones, and encouraging qualified areas to subsidize rural residents to buy specific passenger cars, and so on.

With the implementation of more policies and measures, the potential of automobile consumption will be further released, which will play a greater role in stabilizing the auto market and restoring positive growth.

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