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Ten ministries and commissions jointly launched six measures to promote consumption in 2018.
Feb 14,2019
The content below was translated by Tencent automatically for reference.

SMM2, 14 March: according to statistics released by the China Association of Automobile Manufacturers, China's auto sales totaled 28.0806 million units in 2018, ranking first in the world for 10 consecutive years, but down 2.76 percent from the same period last year. This is the first time since 1990 that China's auto market has seen negative sales growth.

In addition, according to the National Bureau of Statistics, the growth rate of total retail sales of consumer goods fell by 1.2 percentage points in 2018 compared with the same period last year. After deducting the automobile goods, if calculated according to the same caliber, the social zero growth rate is about 0.4 percentage points, in other words, car consumption alone caused a drop of about 0.8 percentage points.

In view of this, in order to promote the steady growth of consumption, The National Development and Reform Commission, together with the Ministry of Industry and Information Technology and the Ministry of Commerce, jointly issued the implementation Plan for further optimizing supply, promoting steady growth of consumption and promoting the formation of a strong domestic Market (2019). At a press conference held by the National Development and Reform Commission on the same day, the relevant responsible persons introduced that the "implementation Plan" put forward 24 policy measures in six aspects, including automobile consumption, urban consumption, rural consumption, new product consumption, high quality supply, and policy system, and so on. Through preferential policies such as subsidies, we should comply with the general trend of upgrading residents' consumption, promote the formation of a strong domestic market, and promote the steady growth of consumption.

Liu Yunan said on January 29 that the slowdown in car consumption was a major factor in the decline in consumption growth in 2018. Therefore, in order to promote the steady growth of consumption, we should try to stabilize the big head of automobile consumption, which is targeted.

The "implementation Plan" jointly issued by ten ministries and commissions has put forward a total of six specific measures for stabilizing automobile consumption. Liu Yunan specifically interpreted that the "implementation plan" proposes to promote the scrapping and updating of old and used vehicles in an orderly manner. Where conditions permit, replacement of vehicles with emission standards of scrapped country III and below shall be supported and appropriate subsidies shall be given. As early as 2009 to 2011, the state has issued a car for new policy, through appropriate subsidies to promote the scrapping of old cars, yellow standard cars, and the purchase of new cars, and achieved better policy results.

Liu Yunan pointed out: in recent years, the requirements for environmental protection have been increasing, and if the policy of appropriate subsidies is adopted, it can play a positive role in promoting the scrapping of cars with emission standards below country III and the purchase of new ones. If the elimination of old diesel trucks and the promotion of the use of new energy vehicles and other air pollution control measures have achieved remarkable results, the central government will give appropriate preferential support when arranging relevant funds, which is not only conducive to ecological and environmental protection, It can also promote the consumption of high-quality cars and kill two birds with one stone.

Liu Yunan said that the "implementation plan" also mentioned the need to continuously optimize the structure of subsidies for new energy vehicles, adhere to the guidance of supporting the excellent and strong, and use more subsidies to support the sale of new energy vehicles with advanced comprehensive performance. This article is also fully in line with the spirit of the national adjustment and improvement of new energy vehicle subsidy policy in June 2018, the core is to encourage the development of high-tech new energy vehicles. At the same time, in accordance with the requirements of the notice on further standardizing and optimizing the Administration of Urban Distribution vehicles issued by the Ministry of Public Security, we should implement the policy of differential traffic management of new energy goods vehicles, provide access facilities, and expand the scope of access. Help the distribution industry to green, clean development.

Liu Yunan pointed out that at present, the number of cars owned by rural residents in China is very low, and many residents in rural areas still rely on three-wheeled vehicles with low safety standards, or even some electric vehicles that are not legally registered. Therefore, the "implementation Plan" also proposes to promote the upgrading of rural vehicles, where conditions permit, to scrap three-wheeled vehicles for rural residents, to purchase trucks of 3.5 tons or less, or passenger cars with engines of 1.6 liters or less. Give appropriate subsidies to guide the upgrading of rural car consumption. In addition, the "implementation Plan" also put forward some policy measures, such as steadily relaxing the restrictions on the entry of pick-up trucks into the city, speeding up the prosperity of the used car market, and further optimizing the motor vehicle management measures of the local government.

Liu Yunan stressed that these encouraging measures to encourage automobile consumption are aimed at promoting automobile consumption, but not simply to increase the amount of automobile consumption. More importantly, it should be based on the better combination of guiding the transformation and upgrading of automobile industry and meeting the needs of residents' consumption upgrading, so as to further improve the matching level of supply and demand of automobile consumption.

Pan Yuzhang, a macro researcher at the Xiangcai Securities Research Institute, said in an interview that the NDRC put forward more measures to promote automobile consumption, which is of great significance to promote the stable and sustainable development of the automobile industry. In the future, the policy focus will benefit the urban and rural markets, first-time car purchase and change demand, promote the optimization and upgrading of automobile consumption, further support the development of new energy automobile industry, and promote the structural transformation and upgrading of the local automobile industry.

Guo Xiaobei, a researcher at Minsheng Bank Research Institute, said in an interview that cars, as a hot area of consumption, account for a considerable proportion of the total retail sales of consumer goods. In 2018, the rising inertia of China's automobile sales since 28 years has been broken, and the profit of the automobile industry has dropped 4.7% compared with the same period last year. It can be said that this is the main factor leading to the decline of consumption growth. Therefore, the important prerequisite to promote the steady growth of consumption is to find ways to stabilize the "big head" of automobile consumption. "in recent years, affected by the fraud incident and the reversal of subsidies, China's new energy vehicle index has shrunk sharply, and the growth rate of production and sales has slowed down." Guo Xiaobei pointed out that the "implementation plan" refers to the need to continuously optimize the structure of subsidies for new energy vehicles, adhere to the guidance of supporting the excellent and strong, and use more subsidies to support the sale of new energy vehicles with advanced comprehensive performance. The core is to encourage the development of high-tech new energy vehicles. In order to promote the upgrading of rural cars, Guo Xiaobei believes that "cars to the countryside" is not only the need to achieve the goal of benefiting farmers and strong farmers, but also an important measure to stimulate consumption-driven production.

For the Chinese automobile market in 2019, Dong Dajian, deputy director of the Information and Software Services Department of the Ministry of Industry and Information Technology, predicted that the environment affecting the automobile industry and automobile development in 2019 is generally positive. Driven by the steady improvement of the quality of national economic development, the upgrading of emission standards, the implementation of the points system for new energy passenger vehicles, and the rapid development of intelligent Internet vehicles, China's automobile industry will make more progress in the development of high quality. The automobile market as a whole is expected to remain basically stable. In the long run, there is still some room for growth in the auto market.

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