Policy rescue + corporate subsidies, is it a good time to buy a car?

"As soon as the policy of halving the purchase tax was released, I have already received calls from several dealers." Wang Hua (pseudonym), who was looking at the car recently, told China News Weekly, "I haven't placed an order, but this time I feel like I made a profit. "

Consumers with car purchase plans are waiting for the "policy package".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 to December 31, 2022 and the price of bicycles (excluding Value-added tax) for passenger cars with a displacement of 2.0 liters and below that does not exceed 300,000 yuan, and the vehicle purchase tax is halved.

This policy has brought comprehensive benefits to independent, joint venture and luxury brands.Auto companies were moved by the wind and set off "involution"-style discounts: including SAIC Volkswagen, Dongfeng Nissan, Roewe, Chery, Dongfeng Fengshen, Changan Automobile, Bestune and many other companies have expressed their willingness to bear the other half of the purchase tax at the first time. Or some models achieve "full purchase tax exemption".There are even car companies that offer additional car purchase benefits such as zero interest and zero down payment.

As a result, the policy strength has exceeded expectations, and the real money and silver discounts have made the auto industry, especially fuel vehicles, expected to bottom out after a difficult April and May.

Not only that,new energy vehiclesalso ushered in good news.On May 31, the Ministry of Industry and Information Technology issued a notice of new energy vehicles going to the countryside, and plans to hold several events in Shanxi, Jilin, Jiangsu, Zhejiang, Henan, Shandong, Hubei, Hunan, Hainan, Sichuan, Gansu and other places. The same will continue until the end of the year.

Figure / Figure Worm Creative

Driven by favorable policies, auto stocks opened stronger on June 1.Haima Automobile, Ankai Bus, Dongfeng Motor’s daily limit, GAC Group, SAIC Group, Changan Automobile, BAIC Blue Valley and other stocks followed up.On June 2, auto stocks continued to soar.

CITIC Securities said that the worst time for the current auto industry has passed, and various policies such as purchase tax reduction and exemption, car going to the countryside, and consumption subsidies are expected to significantly boost auto consumption, and industry sales are expected to recover quickly.

How much can car companies save on purchase tax?

A simple calculation, based on the average price of fuel vehicles sold in China last year was about 166,800 yuan, and the corresponding purchase tax to be paid was 14,800 yuan.At present, according to the purchase tax reduction of 50%, the purchase tax reduction policy directly saves about 7,000 yuan for consumers.Not only that, some car companies have expressed their willingness to bear another part of the purchase tax, which means another 7,000 yuan.Today, buying a 166,800 yuan model saves 14,800 yuan compared to the previous one.Coupled with the policies of zero down payment and zero interest introduced by some car companies, it is indeed a lot more cost-effective to buy a car today.

In the domestic market, the purchase tax reduction policy was introduced in 2009 and 2015, but the preferential models are only models with a displacement of 1.6 liters or less.In the detailed rules for the reduction of vehicle purchase tax for some passenger vehicles, "no more than 300,000 yuan" and "passenger vehicles with a displacement of 2.0 liters and below", the two conditions are compared with the policy of reducing vehicle purchase tax in previous years. All are significantly relaxed, and the pulling effect on the market will be more obvious.

At the same time, many mainstream joint venture car brands have not only launched the promotion of profit-sharing purchase tax, but also introduced additional car purchase benefits.For example, Dongfeng Nissan announced that all its models can enjoy full purchase tax exemption, and also a series of measures such as giving insurance within a limited time and deferred repayment.

Many independent brands have actively responded to the tax reduction policy."The sales volume in the past two months has not been as good as expected, and we must take advantage of the policy to grab the market back first." A person in charge of the independent brand market admitted frankly to China News Weekly.

"Encouraging the consumption of fuel vehicles is to encourage the recovery of people's livelihood needs, especially to drive the growth of first-time purchases and replacement purchases." Cui Dongshu, secretary-general of the Passenger Federation, analyzed that through the implementation of the 60 billion yuan car purchase tax halving measure, from the consumer side, it will give A policy guide for consumer consumption upgrades, reducing purchasing pressure and driving auto consumption back to a normal track.

"Compared withnew energyvehicle users, fuel vehicle users are more price-sensitive." On June 1, Know Chedi and China Automobile Dealers Association released the "New Energy and Fuel Vehicle User Consumption Behavior Insight Report", pointing out that new energy vehicles More sales models such as direct sales are used, and transparency and standardization allow users to have a clearer understanding of prices.

"After the implementation of the new policy, it is expected that the increase will reach about 2 million units." Cui Dongshu believes that the implementation of many new policies such as purchase tax incentives will promote the domestic retail sales to reach 21 million units throughout the year.

Promote new energy vehicles to the countryside

The purchase tax reduction policy has brought obvious benefits to the fuel vehicle market, and it has also made the previous "purchase tax exemption" advantage of new energy vehicles no longer obvious.However, the introduction of the support policy for new energy vehicles to go to the countryside has also played a role in promoting the sales of new energy vehicles.

On May 31, the General Office of the Ministry of Industry and Information Technology, the General Office of the Ministry of Agriculture and Rural Affairs, the General Office of the Ministry of Commerce, and the General Office of the National Energy Administration jointly issued the "Notice on Carrying out 2022 New Energy Vehicles Going to the Countryside Activities".At the same time, the four departments also encourage local governments to introduce more support policies for new energy vehicles to go to the countryside, improve the environment for the use of new energy vehicles, and promote the construction of rural charging and swapping infrastructure.

It is understood that as many as 20 companies participated in this round of new energy vehicles going to the countryside, including FAW Group, Dongfeng Company, Changan Automobile, SAIC Group, SAIC-GM-Wuling, FAW Bestune, Dongfeng Xiaokang, GAC Aian, GAC Toyota, BAIC Foton, Great Wall Motor, BYD, Chery Automobile, Jianghuai Automobile, WM Motor, etc., involving more than 70 models.

It is worth noting that in the past ten years, the policy of sending cars to the countryside has been repeatedly introduced when the auto market is weak, and has played a role in stimulating market consumption.

For example, in 2007, the "subprime mortgage crisis" in the United States caused a global economic downturn, sluggish consumption, and the domestic auto industry was also affected.In this context, the State Council put forward a policy of benefiting farmers in the “Automobile Industry Adjustment and Revitalization Plan” announced in 2009.

At that time, the effect of cars going to the countryside was immediate.According to data from the China Automobile Association, in 2009, domestic auto production and sales increased by 48.30% and 46.15% year-on-year, respectively. For the first time, China surpassed the United States to become the world's largest new car market.Among them, the mini-car market, which was greatly affected by the policy of sending cars to the countryside, increased by 1 million units.

Today, the auto industry is under pressure.While new energy vehicles are developing rapidly, the rural market does have certain potential to be tapped.

Judging from the data, the growth rate of per capita disposable income of rural residents in the first quarter of this year was higher than that of urban residents.In the first quarter, farmers' income continued to grow.The per capita disposable income of rural residents reached 5,778 yuan, a real increase of 6.3% after deducting price factors, 2.1 percentage points higher than the growth rate of urban residents' income.

Jin Wencheng, director of the Rural Economy Research Center of the Ministry of Agriculture and Rural Affairs, said that the state has increased support for the transfer of farm labor to employment.In the first quarter of this year, 3.75 million migrant laborers were transferred to work, which has returned to the level of 2019.

"China's automobilegrowth areas will expand and transfer from the east to the central and western regions, from first- and second-tier cities to third- and fourth-tier cities, and from cities to rural areas." According to an average annual increase of 10% in the disposable income of residents, the number of rural cars per thousand people is expected to reach 160 by 2030, and the total number of vehicles will exceed 70 million.”

In addition, in early May, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the "Opinions on Promoting Urbanization Construction with County Towns as Important Carriers", which mentioned that "to meet the needs of farmers to work and settle in county towns and the production and living needs of county residents, in order to implement The strategy of expanding domestic demand and the coordinated promotion of new-type urbanization and rural revitalization provide strong support." Farmers who seek employment and settle in the county are inseparable from food, clothing, housing, and transportation, which will inevitably lead to new demand for automobile consumption.And promoting cars to go to the countryside is also following the trend.

Auto market "rebounds"

A series of policies are expected to drive my country's auto market to achieve a "bottom rebound".

Affected by factors such as the epidemic, from January to April this year, the domestic auto sector was in a downturn.In April this year, my country's automobile production and sales were directly cut in half.According to data from the China Association of Automobile Manufacturers, in April 2022, the production and sales of automobiles were 1.205 million and 1.181 million respectively, down 46.2% and 47.1% from the previous month and 46.1% and 47.6% from the same period last year.

Data show that the proportion of automobile consumption in the entire consumer market has remained at around 10% for a long time.The sharp decline in the auto industry has dragged down the entire consumer market.According to data released by the National Bureau of Statistics, China's total retail sales of consumer goods in April fell by 11.1% year-on-year.Among them, the retail sales of consumer goods other than automobiles were 2,691.6 billion yuan, down 8.4%.

Now that the epidemic is under control, policies to restore the economy have begun to be introduced one after another.According to the research report of CITIC Securities: From the perspective of displacement, according to the data of insurance coverage, in 2021, the sales volume of passenger cars with a displacement of 2.0L and below will account for 97.4% of fuel vehicles, and 83.2% of all passenger cars.In terms of price, sales of models below 300,000 yuan accounted for 86.8% of fuel vehicles.The purchase tax reduction and exemption policy covers a wide range, and has benefited most of the fuel vehicles, which is expected to form an all-round stimulus and boost to auto consumption.

The analysis of China Merchants Securities believes that policies to promote automobile consumption from the state to various local governments have successively been introduced, which shows the country's determination to promote automobile consumption, and also shows the important position of the automobile industry in the national economy.In the future, with the successive implementation of various forms of encouraging automobile consumption, it is expected to boost the sales of the automobile industry.