The Ministry of Commerce will promote the trade-in of cars, and the second-hand car market will benefit first?
Every reporter: Li Xing Every editor: Sun Lei
A few days ago, at a press conference held by the Information Office of the State Council, the Ministry of Commerce proposed that 2024 will take the "Consumption Promotion Year" as the main line to promote the continuous expansion of consumption. "We will promote the trade-in of cars, home appliances, etc. This is a key point in promoting consumption this year. Wang Wentao, Minister of Commerce, said that the mainland automobile and home appliance market has entered the "era of both increment and stock" from a simple "incremental era".
According to Wang Wentao, in 2023, the number of cars in mainland China will be about 340 million, and the number of home appliances in major categories such as refrigerators, washing machines, and air conditioners will exceed 3 billion, and the demand and potential for replacement are great. The Ministry of Commerce will strengthen support and guidance, in order to improve technology, energy consumption, emissions and other standards as the traction, to promote the opening of the old for the new difficult blockages, stabilize and expand traditional consumption, and better meet the needs of consumer goods for replacement and upgrading, all of which will be promoted on the basis of respecting the wishes of consumers.
On January 31, Yang Weibin, an expert in the new energy automobile industry, said in an interview with the reporter of the "Daily Economic News" that the car is the second largest asset in the family, and has an important impact on economic development and people's livelihood, and the Ministry of Commerce has clearly identified the automobile as the focus of this year's consumption promotion, which highlights the role of the automobile industry as the main force in economic development in 2024.
Cui Dongshu, secretary general of the National Passenger Car Market Information Association, said that the Ministry of Commerce will continue to give certain financial subsidies to consumers by promoting the trade-in of cars. This move will further enhance consumers' enthusiasm for replacement and play an important role in steadily promoting the expansion of automobile scale.
It may promote the development of the second-hand car market
Stabilizing the economy, promoting development and benefiting the people's livelihood are the main themes of current social development. As one of the bulk consumer goods, automobiles are a key area to expand domestic demand and stimulate consumption.
On January 29, data from the National Bureau of Statistics compiled by the China Association of Automobile Manufacturers showed that in 2023, the automobile manufacturing industry will complete an operating income of 10,097.58 billion yuan, a year-on-year increase of 11.9%, accounting for 7.6% of the total operating income of industrial enterprises above designated size. In 2023, the profit of the automobile manufacturing industry will be 508.63 billion yuan, a year-on-year increase of 5.9%, accounting for 6.6% of the total profits of industrial enterprises above designated size.
Image source: WeChat public account of China Automobile Association
"With the support of the Ministry of Commerce and other relevant policies, coupled with the steady growth of China's new energy vehicles and automobile exports, the production and sales of automobiles will still achieve positive growth in 2024, reaching a record high. Yang Weibin said.
The China Association of Automobile Manufacturers predicts that in 2024, Continental's total automobile sales will exceed 31 million units, a year-on-year increase of more than 3%. Among them, passenger car sales reached 26.8 million units, up 3% year-on-year, and commercial vehicle sales reached 4.2 million units, up 4% year-on-year.
According to the life cycle of automobiles, the cars purchased since 2015 have begun to enter the key cycle of upgrading, and the demand and potential for upgrading are great.
Regarding the Ministry of Commerce's move to promote the trade-in of cars as one of the key points to promote consumption in 2024, Nezha Automobile said in an interview with reporters that this measure will bring benefits to the increase in trade-in users. This part of the user has a stronger willingness to buy new energy vehicles, which has a positive effect on promoting the process of oil swap and the growth of the new energy vehicle market, and will also promote the development of the second-hand car market.
Cui Dongshu also analyzed that the Ministry of Commerce has clarified the direction of the car trade-in policy, which will further promote the early car buyers to accelerate the frequency of changing to new cars, so that models with better use value can enter the second-hand car market. In this way, while improving the quality of second-hand cars, it is also expected to further stimulate the circulation of second-hand cars.
Zhang Yanwei, COO of second-hand car e-commerce company Tiantianpaiche, said that the car trade-in policy will further accelerate the expansion of the second-hand car market, and with the continuous optimization of the new car experience, it will force the second-hand car business to further improve.
It is expected to expand the size of the automotive market
The introduction and implementation of the car trade-in policy dates back to 2009. On July 13, 2009, 10 departments, including the Ministry of Finance, the Ministry of Commerce, and the Ministry of Industry and Information Technology, jointly issued the "Implementation Measures for Automobile Trade-in", proposing that four types of cars can enjoy trade-in subsidies, ranging from 3,000 yuan to 6,000 yuan.
Image source: official website of the Ministry of Commerce
In July 2023, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce and other 13 departments jointly issued the "Several Measures to Promote Automobile Consumption" notice, which once again made it clear that it is necessary to support the renewal and consumption of old cars. Encourage all localities to speed up the elimination and scrapping of passenger cars with emission standards of China III and below, and non-standard commercial vehicles in violation of regulations. Encourage the comprehensive use of economic, technical and other means to promote the withdrawal of old vehicles, and areas with conditions can carry out car trade-in, accelerate the elimination and renewal of old vehicles.
In recent years, Shanghai, Guangdong, Shandong, Beijing and other provinces have successively launched the car trade-in policy, which is of positive significance for promoting regional automobile consumption and promoting the development of the new energy vehicle market. "While the relevant authorities are accelerating the promotion of car trade-in, the enterprise side should also continue to increase the new energy and intelligence of automobiles to meet the growing needs of the people for green and intelligent vehicles, strengthen basic research and development and independent innovation, and manufacture cost-effective automotive products. Yang Weibin thinks.
Wang Wentao also emphasized that the trade-in of consumer goods such as automobiles and home appliances is a very systematic project, which requires production, supply and marketing, upstream and downstream, government, enterprises and people, online and offline coordination and linkage, and comprehensive policies. "The Ministry of Commerce will strengthen support and guidance to improve technology, energy consumption, emissions and other standards as the traction, promote the opening of the old for the new difficult blockages, stabilize and expand traditional consumption, and better meet the needs of consumer goods for new and upgraded. Wang Wentao said.
Nezha Automobile said that the ultimate goal of car trade-in is to upgrade the quality. The Ministry of Commerce's move will also improve product quality and technical level through the reverse incentive of the market, promote the two-way improvement of user travel quality and industry development quality, further enhance the competitiveness of continental automobiles in the international market, and have a positive impact on the expansion of the automobile market.
National Business Daily