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After this round of epidemic turmoil, what to enhance people's confidence in the car market?

Recently, the news about the "singing down" car market has emerged in an endless stream, raw materials have risen, the production of car companies caused by the epidemic has been blocked, logistics has been interrupted, etc., and even some dealers have no cars to sell, which has aroused people's strong concerns about the development of the domestic automobile market.

After this round of epidemic turmoil, what to enhance people's confidence in the car market?

Judging from some of the current known information, the sharp decline in production and sales of the domestic automobile market in April has become a fact, how to save the car market in the next step? It is the next thing that needs to be focused on. The automobile industry is one of the pillar industries of the mainland, contributing more than 10% to GDP last year, second only to real estate, and saving the car market is equivalent to saving the domestic economy.

Today's economic situation is reminiscent of the financial crisis that began to sweep the world in 2008, in which American auto giants Ford and GM collapsed. However, under the guidance of the policy principle of "expanding domestic demand," the mainland's "home appliances going to the countryside" and "cars going to the countryside" with greater influence have successfully turned the crisis into an opportunity, which has promoted the development of the vast rural areas to a certain extent, and finally survived the difficult period without any danger. If we implement the "car to the countryside" again now, can we replicate the success of the past? The answer is obviously no.

After this round of epidemic turmoil, what to enhance people's confidence in the car market?

First, the 2008 financial crisis was directly caused by the US subprime housing credit crisis, and the mainland hedged this external shock to some extent through the "expanding domestic demand" policy. The domestic car market crisis is caused by various factors such as the Russian-Ukrainian war and repeated epidemics, in other words, "domestic demand" cannot be effectively released.

After this round of epidemic turmoil, what to enhance people's confidence in the car market?

In addition, from 2008 to 2021, the urbanization rate of the mainland will increase from 47% to 64.7%, and the trend of concentration in large cities is more obvious, and the large reduction of population will inevitably lead to a decline in the consumption power of rural and remote towns. In addition, in order to achieve the goal of carbon peaking in 2030, the first choice for implementing the "car to the countryside" policy is definitely new energy vehicles. In rural areas, the awareness of new energy vehicles is low, and people's acceptance of this emerging thing is debatable. More importantly, it is a huge challenge for supporting services such as the maintenance of new energy vehicles to be improved in rural and remote towns in a short period of time. Even with the above conditions, the car life cycle of 8-10 years has now passed the peak period of the first round of subsidized user replacement vehicles.

After this round of epidemic turmoil, what to enhance people's confidence in the car market?
After this round of epidemic turmoil, what to enhance people's confidence in the car market?

Judging from the current situation, the method of "encircling the city from the countryside" is not feasible in the car market, and "top-down" may be a better approach. To enhance consumers' enthusiasm for new energy vehicles, it is still necessary to speed up the pace to solve the clichéd industry pain points. Improve the energy replenishment infrastructure such as charging stations (charging piles) and power stations, and optimize the subsidy policy for car purchases. In addition, how to reduce the cost of car maintenance is also a concern for many users, parking fees, maintenance fees, insurance premiums, each cost is a big expense.

After this round of epidemic turmoil, what to enhance people's confidence in the car market?
After this round of epidemic turmoil, what to enhance people's confidence in the car market?

Under the guidance of the national macro policy guidelines, a number of provinces and cities have relaxed the regulations on the purchase of automobiles, coupled with the new regulations on the registration of motor vehicles to be implemented from May 1, the exemption from the inspection of the license plate of new private cars, the national "one-card general office" for the registration of passenger cars, and the "inter-provincial general office" for vehicle information changes are all major good news for automobile sales and circulation. Therefore, there is no need to over-sell anxiety and continue to "look down" on the car market, as long as the consumers' money bags are stabilized, the car market will resume its former vitality, and it should not take too long. (Text/UVIS Auto Ride)

Note: The picture comes from the network, the rights belong to the original author, thank you! This article only represents the personal views of the author and does not represent the position of Univision Automobile.

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