AutoBeta(AutoBeta.net)09/24 Report--

At the first press conference of the News Center celebrating the 70th Anniversary of the founding of New China held on September 24, Ning Jizhe, vice minister of the National Development and Reform Commission and director of the National Bureau of Statistics, mentioned a major problem in today's automobile industry, saying that restrictions on car consumption should be removed.

In 2018, China's cars declined for the first time in 28 years, down 2.8 per cent from the same period last year to 28.081 million, and the downward pressure has not eased so far. Car sales have fallen for 14 months in the past 15 months, with a double-digit decline of 11% from January to August this year.

Car sales continued to decline, sellers lack of confidence in buying, reflecting the impact of the decline in macroeconomic growth. At the same time, in recent years, for environmental protection, traffic control and other considerations, many local governments have introduced car purchase restrictions, suppressing the potential purchasing power, resulting in difficult to recover car sales in the downward environment. Therefore, the primary factor to further promote automobile consumption is to "break the restriction of automobile consumption".

Ning Jizhe made it clear that restrictions on car consumption should be broken. At present, Guangzhou, Shenzhen and other cities have relaxed or abolished purchase restrictions, Xi'an, Kunming, Guiyang and other cities are also considering, and some qualified areas will follow one after another.

Ning Jizhe believes that promoting the renewal and upgrading of consumption and actively promoting the trade-in of cars, home appliances, and consumer electronics for new ones can promote the upgrading of consumption quality and expansion, which is an effective measure to prosper the economy and improve people's livelihood.

Since the second half of the year, the government has made suggestions to stimulate automobile consumption.

On June 6, the National Development and Reform Commission and other departments issued a document promoting the implementation plan for the renewal and upgrading of key consumer goods, proposing that all localities are strictly prohibited from issuing new car purchase restrictions, and stressed that all localities are not allowed to impose traffic restrictions or purchase restrictions on new energy vehicles, and those that have already been implemented should be abolished. At the same time, it is suggested that local governments that have implemented car purchase restrictions should speed up the shift from restricted purchase to guided use.

In the opinions on speeding up the Development of Circulation and promoting Commercial consumption issued by the General Office of the State Council on August 27, the General Office of the State Council pointed out that areas that implement car purchase restrictions should explore specific measures to gradually relax or abolish purchase restrictions in the light of the actual situation, and where conditions permit, they will give active support to the purchase of new energy vehicles.

Guangdong Province has made it clear that it is necessary to improve the system and mechanism of promoting consumption, that it will gradually relax the car lottery and auction targets in Guangzhou and Shenzhen, and that other cities are no longer allowed to issue car purchase restrictions. In June, Shenzhen confirmed an increase of 80, 000 license plates by the end of 2020, while Guangzhou increased by 100000.

Cui Dongshu, secretary-general of the Federation, believes that abolishing lottery restrictions and releasing entry-level consumption potential is good for independent brands and can stabilize consumer mentality at the same time.

The suggestion of the relevant departments to "relax or abolish the purchase restrictions" is undoubtedly a great benefit to the urban consumers who implement the purchase restrictions in the first and second line. However, what is more important is how the specific implementation plan will be implemented in various localities.

However, once the purchase restrictions are relaxed, the traffic congestion, the difficulty of parking and the cost of using cars in the city are also important factors that further restrict consumers from buying new cars.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat