6 billion subsidies from the State Council to support small-emission energy-saving vehicles

The state plans to allocate 6 billion yuan to support the promotion of energy-saving vehicles with displacements of 1.6 liters and below. In this regard, industry insiders believe that consumer subsidies in the auto industry will continue to focus on energy-saving and new energy vehicles. Only by improving the environment for car use and parking can a substantial improvement in auto consumption be promoted.

Energy-saving vehicle subsidies are the main line

After the gradual withdrawal of various policies such as car purchase tax concessions, cars going to the countryside, and old-for-new trade-in, the current subsidies for China's auto industry are mainly related to energy-saving and new energy vehicles. The industry believes that in the short term, the subsidies for the auto industry are mainly to continue the previous energy-saving and new energy vehicle-related incentives and subsidies to guide the adjustment of the consumption structure of the auto industry; in the long-term, the industry calls for the introduction of purchase tax, Preferential policies on consumption tax.

Currently, among the original subsidy policies, only energy-saving and new energy vehicles still enjoy purchase subsidies. Among them, the subsidy for energy-saving vehicles began in June 2010. The three national ministries and commissions have launched a number of "Energy-saving Products Benefiting People Project" energy-saving vehicle promotion catalogs. Consumers who purchase energy-saving vehicles on the catalog can receive a subsidy of 3,000 yuan per vehicle. The policy has begun to raise the threshold since October 1, 2011. The requirements for energy-saving vehicles included in the subsidy range have been reduced from 6.9 liters per 100 kilometers to 6.3 liters, and the subsidy standard remains unchanged at 3,000 yuan per vehicle. According to statistics, after the adjustment of the subsidy policy, more than 80% of small-displacement cars are excluded from the subsidy policy. Industry insiders predict that the threshold for future energy-saving vehicle subsidies may continue to increase with technological development.

Since the threshold for subsidies for energy-saving vehicles was raised in October last year, various automakers have launched a number of new energy-saving products in accordance with their policies. However, only a batch of promotion catalogues were released in October 2011, and many products that meet the requirements have not yet been selected into the subsidy catalogue. Cui Dongshu, deputy secretary general of the National Passenger Car Market Information Joint Council, said that the introduction of the catalog lags behind the introduction of new products. At present, as long as the original policies are implemented well, the growth of the small-displacement automobile market can be boosted.

In terms of new energy vehicles, in addition to the original central and local subsidies, the "Energy-saving and New Energy Vehicle Industry Development Plan (2012-2020)" has just been discussed and approved by the State Council in April, and the new subsidy policy details have yet to be issued.

The sales of small-displacement cars are still not optimistic

This time the country plans to allocate a subsidy of 6 billion yuan for small-displacement energy-saving vehicles. This is the first time this year that the subsidy for energy-saving vehicles has been clarified. However, Zhang Xin, an analyst at Guotai Junan Securities, said that the subsidy was not as strong as the annual subsidy of 10 billion yuan in 2009, and the car purchase and use environment is no longer as good as in 2009. Only by improving the car use and parking environment can we fundamentally promote a substantial improvement in car consumption.

Currently, driven by rigid demand, the overall sales situation of the auto industry has improved; although small-displacement cars enjoy subsidies, their sales status is still not optimistic. Cui Dongshu believes that in the long term, the automobile industry has problems with high purchase tax and consumption tax, and calls for further tax reduction policies for small-displacement vehicles, so that the effect of guiding the consumption structure can be more obvious.

Since March, China’s auto market has gradually recovered. According to data from the China Association of Automobile Manufacturers, in March, passenger car sales totaled 1.4 million units, an increase of 15.40% month-on-month and an increase of 4.54% year-on-year; in April, passenger car sales totaled 1.276 million units, a month-on-month decrease of 8.85% and an increase of 12.46% year-on-year. .

The National Passenger Car Market Information Joint Committee further predicts that there will be no policies that are not conducive to the auto market this year. This ensures that the overall auto market will grow at 7% this year, and the narrow passenger car will grow at 10% or more.

Although the overall situation is good, the situation of the small-displacement car market is still not optimistic. Cui Dongshu said that the current recovery is a weak recovery, mainly due to the low base last year, and the sales and market share of mini-cars and small-displacement cars have continued to decline year-on-year, and there is no sign of improvement. Therefore, it is recommended that it should The policy for small-displacement vehicles shall be continued, and the structure of automobile consumption shall be guided. A more effective guiding policy is to reduce the purchase tax and consumption tax on small-displacement vehicles.

Dong Yang, executive vice president and secretary-general of China Association of Automobile Manufacturers, called for independent development support at the policy level. Of course, the premise is to give proper protection to national brands in compliance with WTO rules.