The Industry Is Concerned About The Restriction Of Auto Consumption, Loosening Of Tax And Reduction Of Taxes And Fees.

In February 16th, Qiushi magazine published an important article by Xi Jinping, general secretary of the CPC Central Committee, chairman of the CPC Central Committee and chairman of the Central Military Commission, at the Standing Committee meeting of the Standing Committee of the Political Bureau of the Central Committee of the CPC to study the new type of coronavirus pneumonia.

General secretary Xi Jinping pointed out clearly in his article: "expanding consumption is one of the important points to hedge against the epidemic."

In the measures to stabilize household consumption, general secretary Xi Jinping proposed to actively stabilize traditional bulk consumption such as automobiles, and encourage auto purchase areas to appropriately increase vehicle license plate quotas, so as to promote the consumption of automobiles and related products.

In response, a number of automobile industry experts told reporters in an interview with the economic news reporters in twenty-first Century that this is absolutely good news for promoting automobile consumption, and stimulating automobile consumption is very important for improving the current difficulties faced by the automobile industry.

At present, China's automobile industry is facing development pressure. Since July 2018, China's auto industry has been growing for 18 consecutive months, and the new crown pneumonia epidemic has made the auto industry worse.

In February 13th, the China Automobile Industry Association pointed out at the network information conference that the epidemic also had a series of impact on the domestic automobile industry. The demand for cars and the ability to consume in the short term, the progress of enterprises are blocked, the difficulties of enterprises' export increase, the hidden troubles of SMEs' capital chain are increasing, and the difficulties of enterprises in dealing with the standards and regulations are greatly aggravated.

According to statistics from the China Automobile Industry Association on the more than 300 vehicle and parts enterprises interviewed, the impact of the epidemic on China's economy is greater than that of SARS in 2003.

Forecasts from the national passenger car market information conference show that retail sales in February are expected to fall by more than 30%.

Under such circumstances, central and local governments use macroeconomic regulation and control measures to introduce policies to lighten the burden of enterprises and boost consumption.

In fact, a series of policies to promote car consumption and encourage private cars to travel are also being implemented in the near future.

In February 15th, the Ministry of transport issued a notice to strengthen the safety and health of the highways, protect the safety and health of the people, ensure the epidemic prevention and control, and transport the production of living materials, support the resumption of work and restore production, and provide a strong support for stabilizing the overall economic and social situation. After the approval of the State Council, from 0:00 in February 17th to the end of the epidemic prevention and control work, the toll roads nationwide are free of traffic. Fee, the specific deadline will be announced.

In addition, local governments began to introduce policies to stimulate car consumption. A few days ago, the office of the people's Government of Foshan city of Guangdong province first released the notice on Issuing and promoting the upgrading of the automobile market in Foshan (for Trial Implementation), giving a subsidy of 2000-5000 yuan to the "standard six" standard cars in the city, and the first shot to promote local consumption.

At the same time, in order to enhance the enthusiasm of local consumers in automobile consumption, Foshan also stipulates the purchase registration procedures, such as increasing the number of vehicle registration service stations, increasing the types of vehicle registration service stations, simplifying the registration procedures, optimizing the business process of vehicle registration, etc.

As an important guarantee to promote the steady growth of the total retail sales of consumer goods in Foshan and to accelerate the transformation and upgrading of the automobile consumption market, the notice will be implemented from March 1st this year.

Clear policy objectives are key.

"At present, the epidemic situation and related situation is not clear, and it is necessary for major parts and vehicle companies to make relevant recommendations." The China Automobile Industry Association said that last year, the government issued a lot of policies to promote the consumption of automobiles. If we could implement a series of automobile consumption policies, including stimulating the circulation of second-hand cars, lifting the restrictions and limiting the purchase of cars, it would play a good role in promoting the domestic automobile market.

Reporter combing found that since 2019, in order to stabilize car consumption, the relevant ministries and commissions have repeatedly mentioned measures to promote vehicle consumption in the policy.

In January 2019, the 10 ministries and commissions of the national development and Reform Commission and the Ministry of transport jointly issued the implementation plan of further optimizing supply and promoting steady growth of consumption to form a strong domestic market (2019), and put forward "optimizing management measures for motor vehicle purchase restriction" to promote automobile consumption.

In June 2019, the national development and Reform Commission issued the "implementation plan for promoting the upgrading and upgrading of key consumer products and smooth recycling of resources" (2019-2020 years). It was proposed that the local governments that have implemented the auto purchase restriction should speed up the shift from restricted purchase to guidance and use, and all localities should not restrict or restrict the purchase of new energy vehicles, which should be abolished.

In August 2019, the general office of the State Council issued the "opinions on accelerating the development of circulation and promoting commercial consumption", which put forward 20 policies and measures to stabilize consumption expectations and boost consumer confidence, including "releasing the potential of automobile consumption" and "increasing the support of financial support". In November 2019, a spokesman for the national development and Reform Commission disclosed at a news conference that we should stabilize the bulk of car consumption and study the policy of eliminating restrictions on consumption. We should stabilize the consumption of cars and other consumers, eliminate the restrictions on vehicle consumption, and explore specific measures to gradually relax or cancel the purchase restriction, so as to promote the policy of car purchase restriction to change the guiding use policy.

In addition, ten ministries and commissions such as the Ministry of Commerce and the NDRC also issued the implementation plan to further optimize the supply and promote the steady growth of consumption to form a strong domestic market (2019), and proposed six consumer stimulus measures, such as car going to the countryside, pick-up trucks and so on.

"These policies are a good direction, but the effect of stimulating consumption is not particularly significant." In February 17th, Cui Dongshu, Secretary General of the information conference of the national passenger car market, said in an interview with the twenty-first Century economic report reporter that the main reason for this result is unclear direction.

"At that time, policy formulation was aimed at changing the obstacles of institutional mechanisms, without a definite goal, such as driving the whole automobile industry, ensuring that cars and consumption should rise to a reasonable level." Cui Dongshu said, "this policy thinking is faced with the impact of sudden outbreaks on automobile consumption, and the target of promotion fees is clear. Therefore, we are confident that car consumption can resume in 2020."

How to relax the restriction cities?

It is worth noting that general secretary Xi Jinping clearly pointed out in the article that "encourage auto purchase areas to appropriately increase vehicle license plate quotas, and promote the consumption of automobiles and related products".

According to Cui Dongshu, the new crown pneumonia epidemic will reduce the number of vehicle sales in 2020 by about one million vehicles. The total number of vehicle license plates in the current restriction area is about 50-60. If the quota is increased by 20-30, it will contribute to the car market and promote the recovery of consumer confidence.

Therefore, whether Beijing, Shanghai, Tianjin, Guangzhou, Shenzhen, Hangzhou and other restricted cities can respond to the call to release the policy of car purchase restriction has become a widespread concern in the industry.

"For the limited cities such as Beijing and Shanghai, if we do not solve the problem of traffic congestion, it will be very difficult to increase the quota of licences. There is little possibility of releasing the restriction or increasing the licence in a short time." Insiders told reporters on twenty-first Century economic report.

Earlier, in calling for the lifting of the auto restriction policy, in 2019, Guangzhou and Shenzhen responded to the policy, loosened the Yaohao indicators, added 180 thousand Yaohao indicators, and Guiyang partly relaxed the restriction on car purchases, while other restricted cities did not respond.

"Traffic congestion and environmental protection have always been a problem in Beijing. Compared with other cities, Beijing has its own characteristics. If we want to fully liberate it, it will be very difficult." Cui Dongshu told reporters that in cities where the constraints are relatively large, they need the ability of the government to innovate.

"In fact, we should give consumers a reason to buy cars, so that consumers can have a safe travel environment and a reasonable idea of buying cars." Cui Dongshu told reporters that the most effective measure is to reduce taxes, such as the reduction of personal income tax. If buying a car is like a house, it can be tax deductible. It also gives consumers a better reason, and for the country, the loss is not particularly big, it is a good way to make the best of both worlds.

In addition, Cui Dongshu believes that other tax deductions or reduced vehicle use costs will also boost vehicle consumption growth.

"To encourage consumers to increase their purchasing power, we need to have some very specific measures to really take money to make subsidies. There is a certain pressure on all levels of finance, but it will be much easier to do it from the perspective of tax cuts. More tax incentives should be used to encourage car purchases. Cui Dongshu told reporters, "in 2009 and 2015 the two time to deal with the downward pressure on the economy, we have adopted a partial tax cut half of the policy, the implementation of good results."

In Cui Dongshu's view, from the zero hour of February 17th to the end of epidemic prevention and control, the toll free toll policy is a valid policy to reduce the cost of vehicle use.

"Under the epidemic situation, all policies should be more solid than last year, so that we can get through the epidemic situation smoothly." Cui Dongshu believes that "at present, a series of policies to promote automobile consumption are aimed at solving the short-term problems affecting the epidemic, and do not leave behind the long-term development."

In addition, in view of Foshan's recent policies to encourage car consumption and subsidize car purchases, Cui Dongshu said that it will have an obvious boost to car consumption in Foshan and Guangzhou.

"I think this will promote the demand for cars in the surrounding areas of Foshan, and will also stimulate Guangzhou's demand, so that many consumers who buy cars in Foshan in Guangzhou or in the surrounding areas will have a steady growth effect on Guangdong's car market." (Editor: He Fang)

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