1.6 liter displacement following car purchase tax reduction policy is expected to continue


At the threshold of the upcoming New Year, will the domestic auto market that lasted for a year be sustainable?

Yesterday, Chang Xiaocun, Director of the Department of Market System Construction of the Ministry of Commerce, stated at the press conference of the “expanding consumption” department of the Ministry of Commerce that there is still much room for China’s auto consumption growth and there is still room for adjustment of relevant policies.

Among the various policies to promote automobile consumption of 1.6 liters displacement car purchase tax by half or less the sustainability of the automobile market is the focus of attention. The policy of stimulating consumption that was implemented at the beginning of this year once brought about a year of hot consumption in the auto market. As a result, under the financial crisis, global car sales have fallen, while China’s car sales have become the first, and it is expected that it will reach 13 million vehicles.

In this regard, Chang Xiaocun said that he may have better performance throughout the year. He believes that in addition to halving the vehicle purchase tax, the “new-for-new” vehicle that was launched in the second half of this year has also played a significant role.

Chang Xiaocun also revealed that relevant departments have been considering the continuation of these policies to promote automobile consumption. As the government has increased its investment in "fixed assets investment" this year, and "trade" has begun to have a step-down decline, so next year is still facing the pressure of starting "consumption" to continue to drive economic growth, so decision-makers will consider maintaining a strong In the automotive consumer market, various policies to stimulate car purchases will continue.

Prior to this, the automobile industry has already begun circulating preferential policies for vehicle purchase taxation that will continue to be implemented next year. It is possible that the contents will change, and the models that enjoy preferential tax on purchases will be expanded this year.

It is understood that the participating ministries, including the Ministry of Finance and the National Development and Reform Commission, have reached a consensus on this matter. There are currently two alternatives. One is to continue this year's standard, to implement different preferential policies according to the displacement of passenger car engines, and to enjoy a larger purchase tax concession in principle with low emission; second is based on passenger cars. The level of fuel consumption, the implementation of purchase tax preferential policies, and the current actual data on the passenger vehicle sales data research has also been completed.

In addition, the policy of "replacement of old cars" led by the Ministry of Commerce was started late this year and implemented for more than two months, driving the consumption of new cars by 1 billion yuan. Chang Xiaocun said that the Ministry of Commerce will intensify policies to promote automobile consumption next year in the “used car market” transformation and the expansion of “cars to the countryside”.

At present, there are more than 500 used car markets across the country. As of the end of November, there were 3 million used car transactions. The Ministry of Commerce considers this number to be very different from international figures. The volume of used car trade in the world is 3.5 times that of new car sales. China’s The 3 million old cars are only equivalent to 27% of the sales of new cars and therefore have great potential. Currently, the Department of Market Construction of the Ministry of Commerce is promoting the upgrading and transformation of functions, information, and service quality of used car trading markets.

In addition, rural consumption is likely to exceed 2 million vehicles this year, which is an increase of 80% compared to the previous year, as rural consumption is clearly faster than urban areas for the first time this year. Chang Xiaocun said that he believes that the hot spot of auto consumption has just arrived, and it can become one of the most important factors in driving "domestic demand."

From a global perspective, consumption growth this year is also a high point in recent years. It is forecasted that the total retail sales of consumer goods will increase by about 15.6% year-on-year this year. In terms of automobiles, comprehensive statistics from the Ministry of Commerce show that from January to October, the country's auto sales were 10.89 million, an increase of 37.7% year-on-year.

Among them, passenger car sales of 1.6 liters and below were 5.701 million, which was an increase of 63.2% over the same period of last year. The sales growth of household appliances above designated size wholesale and retail enterprises in China was 8.6 percentage points higher than that in the first quarter, which led to a year-on-year increase of 11%, 16.7%, and 4.2% in the production of low-power washing machines, refrigerators, and color TVs, respectively.



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