Vehicle purchase tax reduction measures will be implemented or drive an increase of 2 million vehicles

On May 31, the Ministry of Finance and the State Administration of Taxation issued the "Announcement on Reducing and Collecting Purchase Tax for Some Passenger Vehicles", showing that the purchase date is from June 1, 2022 to December 31, 2022, and the price of (excluding value-added tax) 2.0 liters and below passenger cars with a displacement of not more than 300,000 yuan, the vehicle purchase tax will be halved.

Image source: Screenshot of the official website of the Ministry of Finance

In the eyes of industry insiders, this is the implementation of the details of the measures to reduce the 60 billion yuan car purchase tax.On May 23, the executive meeting of the State Council further deployed a package of measures to stabilize the economy, and decided to relax the restrictions on car purchases and reduce the purchase tax of some passenger cars by 60 billion yuan in stages.

"Encouraging the consumption of fuel vehicles is conducive to the recovery of people's livelihood needs, and is of great significance to driving the growth of first-time purchases and replacement purchases. It is expected that after the implementation of the policy, the retail sales of passenger vehicles will reach an increase of 2 million units." Cui Dongshu, secretary-general of the Passenger Federation, said, We previously estimated that the retail sales of passenger vehicles in 2022 will be 19 million units, a year-on-year decrease of 5%; it is expected that the implementation of new policies such as purchase tax concessions and the efforts to promote consumption in the next seven months will push the annual retail sales to 21 million units. A year-on-year increase of 4%.

Cui Dongshu believes that the implementation of the 60 billion yuan passenger car purchase tax halving measure is a policy guide for consumption upgrades on the consumer side, promotes the restoration of confidence among mainstream consumer groups, and effectively reduces purchasing pressure; in the field of circulation, it will stimulate the consumption of traditional fuel vehicles and improve The survival status and development confidence of dealers; the release ofproduction capacity thatdrives manufacturers to resume work and production on theproduction side, promotes the production side to return to the right track, and then stimulates the recovery of industrial added value and output value.

It is worth mentioning that this is not the first time that my country has introduced preferential policies for vehicle purchase tax.The Ministry of Finance and the State Administration of Taxation issued three documents in 2009, 2010 and 2015, on January 20, 2009 to December 31, 2009, January 1, 2010 to December 31, and October 2015. From the 1st to December 31st, 2016, for the purchase of passenger cars with a displacement of 1.6 liters and below, the vehicle purchase tax will be temporarily reduced by 5%, temporarily reduced by 7.5% and reduced by 5%.

The implementation of the vehicle purchase tax preferential policy has played a certain role in boosting the auto market.Data show that in 2009, my country's automobile production and sales were 13.791 million and 13.6448 million, an increase of 48.30% and 46.15% year-on-year respectively, becoming the world's largest automobile production and sales country for the first time.In 2010 and 2016, domesticcar saleswere 18.06 million and 28.028 million, up 32.3% and 13.7% year-on-year, respectively.

Cui Dongshu said that the purchase tax halving policy will increase the applicable models from 1.6 liters and below to 2.0 liters and below, which is expected to drive all self-owned brand models, all mainstream models of joint venture brands, and some entry-levelluxury carmarket demand, growth The potential is huge.Especially for the Great Wall, Geely, Changan, Hongqi, SAIC Passenger Vehicle, GAC Passenger Vehicle, etc.

According to Cui Dongshu’s analysis, the current sales volume of fuel vehicles of 1.6 liters and below has reached 12 million, with luxury, joint venture and independent brands accounting for 5%, 50% and 44% respectively, of which independent brands account for 64% of the SUV market. %, showing relatively strong characteristics.

In contrast, the 1.8-2.0-liter market is mainly for high-end models, with luxury, joint venture and independent brands accounting for 35%, 45% and 20% respectively, forming the characteristics of high-priced joint venture brands.However, the proportion of self-owned brands in the high-end MPV market is better.

It is worth noting that in addition to the national level, many provinces and cities have also introduced a number of policies to promote automobile consumption in different forms.Among them, Shanghai and Shenzhen added 40,000 and 20,000 ordinary passenger car license plates respectively; Guangdong Province added 30,000 car purchase indicators and implemented car purchase subsidies; Zhengzhou, Shenyang, Haikou, Changchun and Taiyuan invested in car consumption subsidies; Hubei Province Introduce policies such as car replacement, car going to the countryside, and promotion ofnew energyvehicles...

"At present, the auto industry is facing difficult challenges. The industry and enterprises are working hard to promote consumption recovery. Many policy suggestions have also been put forward, including purchase tax reduction and exemption, car purchase tax credit, and trade-in, etc." Cui Dongshu said that after the downturn in the auto market Structural analysis shows that the purchasers of traditional fuel vehicles have been hit the hardest in recent years and need support the most.

Data show that in April this year, domestic auto production and sales were 1.205 million and 1.181 million, down 46.2% and 47.1% month-on-month and 46.1% and 47.6% year-on-year.For comparison, the production and sales of new energy vehiclesin Aprilwere 312,000 and 299,000 respectively, a year-on-year increase of 43.9% and 44.6%.

Since April, domestic epidemics have generally shown a trend of frequent occurrences, and the industrial chain and supply chain of the automotive industry have withstood severe tests.The May Manufacturing Purchasing Managers Index and Composite PMI Output Index, which were released yesterday, all rebounded.From now on, Shanghai has entered a stage of fully restoring normal production and living order.