Follow | Localities, car companies cash promotions, under the epidemic effect?

Lead

After Guangdong,

Many places in the country such as Fujian, Anhui, Shanxi Jinzhong, Jiangxi Nanchang, Henan Anyang and so on

Many local governments have also introduced measures to help consumption pick up,

Among them, it is mainly to promote automobile consumption.

How to regain the market and consumer confidence is in front of all aspects.

Following Guangdong, the governments of many places in the country such as Fujian, Anhui, Shanxi Jinzhong, Jiangxi Nanchang, Henan Anyang and other places have also introduced measures to help consumption pick up, which in turn promotes automobile consumption.

In addition to local governments, car companies are also actively promoting. For example, GAC Toyota issued a sales subsidy policy, which will increase the replacement subsidy in Guangdong.

Many car companies also told China Automotive Pictorial that they are actively introducing a loan financial policy with a normal interest-free time and lower interest rates to promote sales.

However, many authoritative figures in the industry, including Cui Dongshu, secretary general of the Association, said that the effect of these emergency promotions will not be obvious, because the people have no money in their pockets, coupled with the epidemic, economic downturn and other factors, people lack confidence in the future.

More than 60% of dealers who have closed stores for more than a week

The impact of the epidemic in Shanghai and other places on the automotive industry in March was directly reflected in the car sales in April. The sales of new car-making forces collectively fell below 10,000 vehicles.

WEIO delivered 5,074 vehicles in April, down 49.2% month-on-month; Xiaopeng Automobile delivered 9,002 units, down 41.6% month-on-month; Ideal Automobile delivered 4,167 units in April, down 62% month-on-month, setting a new low for monthly deliveries this year.

The three companies said that due to the recent impact of the epidemic, the company has been severely challenged in many aspects such as supply chain, production and logistics and transportation, resulting in obstruction of delivery plans.

"Affected by the epidemic in the Yangtze River Delta, some suppliers located in Shanghai and Kunshan, Jiangsu And other regions were unable to supply, and some suppliers even completely stopped work and operation, resulting in the inability to continue to maintain production after the existing parts inventory was digested, which had a great impact on the production of Ideal Automobile in April." Shen Yanan, president of Ideal Auto, said.

Previously, the Association estimated that the retail sales of narrow passenger cars in China in April were about 1.100 million units, down 31.9% year-on-year.

Similarly, the data of the China Association of Automobile Manufacturers is more pessimistic.

It forecasts that the automotive industry sales in April are expected to reach 1.171 million units, down 47.6% month-on-month and 48.1% year-on-year, and from January to April 2022, sales are expected to be 7.68 million units, down 12.3% year-on-year.

The China Automobile Dealers Association recently released the latest issue of the "China Auto Dealer Inventory Early Warning Index Survey". According to the survey, the inventory warning index of Chinese auto dealers in April 2022 was 66.4%, up 10 percentage points year-on-year. Notably, this is the highest peak since March 2020.

The China Automobile Dealers Association also said that in the 94 cities surveyed, dealers in 34 cities were closed due to the provisions of the epidemic prevention and control policy. Among them, more than 60% of dealers whose store closure time is more than one week.

Subsidies for real money

Automobile consumption is a pillar industry of the national economy, with a long industrial chain and a strong driving effect, which is the "big head" for expanding domestic demand and stimulating consumption.

Zhu Xiaoliang, director of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce, once said that in recent years, the proportion of auto retail sales in the total retail sales of society has been about one-tenth.

To this end, it has become a top priority to preserve the automobile industry and promote automobile consumption.

The executive meeting of the State Council presided over by Premier Li Keqiang of the State Council on April 13 pointed out that it is necessary to expand consumption in key areas, encourage bulk consumption of automobiles and home appliances, and no new car purchase restriction measures should be added in various localities. The meeting also pointed out that it is necessary to support the consumption of new energy vehicles and the construction of charging piles.

Subsequently, various localities have introduced subsidy policies to promote automobile consumption.

Before May 1, Guangdong Province issued a special action subsidy for the replacement of old cars, and for the purchase of new energy vehicles from May 1, 2022 to June 30, 2022, the provincial financial funds will give qualified consumers a comprehensive use subsidy of 8,000 yuan / vehicle.

Fujian Province has also introduced measures to encourage automobile consumption, and the provincial level has arranged funds to subsidize users who buy new cars and license their licenses in automobile sales enterprises in the province.

Since May 1, Shenyang City has issued a one-time automobile consumption subsidy of a total of 100 million yuan to individual consumers who purchase non-operating vehicles in Shenyang, and supports the holding of 5 car activities attended by no less than 10 brands throughout the year, and each activity gives the organizer a maximum subsidy of no more than 200,000 yuan.

From May 3, the first 2,000 new cars purchased through trade-in, the first 4,500 new cars purchased directly and the first 1,000 new cars purchased through group purchase will be issued with car consumption coupons of 3,000 yuan per car, 2,000 yuan per car and 5,000 yuan per vehicle respectively.

The promotion policy of Shanxi Jinzhong is 60,000-100,000 yuan per subsidy of 2,000 yuan, 100,000-200,000 yuan per vehicle, more than 200,000 yuan, and 5,000 yuan per subsidy. Each gasoline vehicle is then rewarded with a gasoline consumption coupon of 800 yuan.

The policy of Nanchang in Jiangxi is similar to that of Jinzhong, with subsidies of 1,000 yuan below 100,000 yuan, subsidies of 2,000 yuan of 100,000-200,000 yuan, and subsidies of more than 200,000 yuan of 3,000 yuan. In addition, for users who purchase new energy vehicles produced in the economic development zone, an additional subsidy of 500 yuan / unit of more than 100,000 yuan and an additional subsidy of 1,000 yuan / unit of less than 100,000 yuan will be subsidized.

In addition to the cash subsidy of real money and silver, some limited-license areas also promote sales through a combination of cash subsidies and increased number plates.

From May to June, Shenzhen will increase the number of car purchase targets by 10,000, while subsidizing the replacement of old-for-new car owners who meet the requirements, with a maximum subsidy amount of 5,000 yuan. At the same time, Shenzhen also organized various districts to successively launch superimposed car purchase incentives, and the cumulative amount of rewards for each car has exceeded 20,000 yuan.

In addition to local governments, vehicle companies are also taking action. GAC Toyota recently released a sales subsidy policy, on the basis of guangdong province's "old for new" subsidy and new energy vehicle purchase subsidy, additional replacement subsidies, up to 5,000 yuan replacement subsidies.

"Not optimistic about the results"

"But I am not very optimistic about these promotional policies, and there are also reasons for the decline in sales," said the analyst, "the decline in sales of new car-making forces is mainly caused by limited production capacity and logistics obstruction."

He believes that for high-priced models, or consumers who buy high-priced new energy vehicles, the impact of the epidemic on them is not large, and the impact is on the sales of low-end models.

This is indeed similar to the statement of car companies. Shen Yanan said that some suppliers can not supply, and some even completely stop work and operation, resulting in a serious impact on the company's production, and some users' new car delivery is delayed, but there is no mention of whether his customers have given up buying because of the decline in consumption power.

In addition, in the two years of the epidemic, the sales volume of global luxury cars has repeatedly reached new highs, and the more expensive the car, the better the sales performance. Ultra-luxury brands such as Rolls-Royce, Lamborghini and Porsche all set record sales last year.

In the Chinese market, Bentley's annual sales in China rose by 40% year-on-year in 2021, accounting for 27.5% of global sales; Porsche sales in China rose by 8% year-on-year, and the Chinese market has become Porsche's largest single market in the world for the seventh consecutive year; Lamborghini's sales in China increased by 55% year-on-year.

Cui Dongshu also made it clear that "the decline in sales of low-end fuel vehicles under the epidemic is that consumers do not buy cars, rather than buy new energy vehicles."

As for the reason, some insiders said that the epidemic and economic downturn are difficult to shake the richest class, the most uncomfortable is the middle class, and the biggest impact is the bottom.

In April, the epidemic situation in various places has not been effectively contained, and the prevention and control policies in many places have been upgraded, and both private small business owners and ordinary migrant workers have been greatly affected. People's incomes are lower, and they are confused about the future prospects, resulting in a further reduction in their desire to consume.

"Those who plan to buy a car for seventy or eighty thousand yuan, not to mention, can buy it without buying it." Because for them, at this stage, the car is not just needed, a stable life is." The above-mentioned industry insiders added, "Although the government is subsidizing, the price increase or discount of new cars is less, and it is not the best time for consumers to buy."

The reporter noted that during the May Day period this year, on the one hand, the "rescue" of policy promotions, on the other hand, the price increase of car companies "poured cold water".

On May 1, Lynk & Co officially announced that the price of its PEV plug-in hybrid models on sale was raised, with an increase of 2,000-4,000 yuan. Extreme Kr Auto officially announced a price increase, of which the price of the Extreme Kr 001 ultra-long endurance dual motor YOU version was raised by 18,000 yuan to 386,000 yuan.

On May 1, Jiangqi Group announced that the price of Sihao E10X four-leaf clover and mantianxing models has increased by 1,000 yuan. Ford motor also announced on May 1 that some of its Mustang Mach-E models have ushered in price adjustments, with price increases ranging from 0.7 million yuan to 20,000 yuan.