Recently, trade-in has attracted wide attention and has become a hot word in the industry.
From the Central Economic Work Conference at the end of last year to "promote large-scale equipment renewal and consumer goods trade-in with the traction of improving technology, energy consumption, emission and other standards", to the fourth meeting of the Central Financial and Economic Commission at the beginning of this year to "encourage and guide a new round of large-scale equipment renewal and consumer goods trade-in", and then to this year's government work report to "stabilize and expand traditional consumption, encourage and promote the trade-in of consumer goods", and on March 13, the State Council officially issued the " Promoting large-scale equipment renewal and consumer goods trade-in action plan (hereinafter referred to as the "action plan"), trade-in has been regarded as an effective starting point to release consumption potential and leverage the trillion-dollar market.
At the same time, the introduction of the "Action Plan" is also seen as a new opportunity for the current and future commercial vehicle market. The industry generally believes that in today's intensified competition in the stock market, trade-in will undoubtedly accelerate the transformation of the industry's old and new kinetic energy, activate the potential of old vehicles and new car replacement, and promote the industry to achieve high-quality development.
The New Deal is riveting
The "Action Plan" proposes to focus on the implementation of four major actions: equipment renewal, consumer goods trade-in, recycling and recycling, and standard improvement. The Action Plan clearly states that by 2027, the scale of equipment investment in industry, agriculture, construction, transportation, education, cultural tourism, medical care and other fields will increase by more than 25% compared with 2023, the recycling volume of scrapped vehicles will increase by about double that of 2023, and the transaction volume of second-hand cars will increase by 45% compared with 2023.
At the opening ceremony of the 2024 China Commercial Vehicle Forum held on March 27, Yao Jian, senior advisor of the Expert Committee of the China Chamber of Commerce for Mechanical and Electrical Machinery, former deputy director of the Liaison Office of the Central People's Government in Macau, and former director of the General Office of the Ministry of Commerce, said that the four major actions and seven areas mentioned above are closely related to commercial vehicles. According to the estimates of relevant departments, only in terms of equipment renewal, there will be a huge market of more than 5 trillion yuan every year. Relevant agencies have also analyzed that the number of commercial vehicles with emission standards of China IV and below in the mainland has reached the 10 million level.
Specific to commercial vehicles, the "Action Plan" proposes in the "Implementation of Equipment Renewal Action": continue to promote the electrification of urban buses, support the replacement of old new energy buses and power batteries, and accelerate the elimination of diesel trucks operating with emission standards of China III and below.
In the "implementation of consumer goods trade-in action", it is proposed to strictly implement the mandatory scrapping standards for motor vehicles and vehicle safety and environmental protection inspection standards, and eliminate old cars that meet the mandatory scrapping standards in accordance with laws and regulations.
In the "implementation of recycling and recycling actions", it is proposed to optimize the layout of scrapped automobile recycling and dismantling enterprises, and promote the door-to-door car pick-up service model. We will continue to optimize the registration management of second-hand car transactions, promote convenient transactions, and vigorously develop the export business of second-hand cars. Further promote the remanufacturing of traditional equipment such as auto parts.
In the "Implementation of Standard Improvement Actions", it is proposed to accelerate the upgrading of the restrictions related to the energy consumption value of passenger cars and heavy-duty commercial vehicles. Focus on bulk consumer goods such as automobiles, and accelerate the upgrading of standards for safety, health, performance, environmental protection, and testing. Support domestic institutions to actively participate in the formulation and revision of international standards, and support key industry standards such as new energy vehicles to go global.
The relevant person in charge of the National Development and Reform Commission said that the National Development and Reform Commission will work with relevant parties to increase fiscal, financial, taxation and other policy support, strengthen the guarantee of land use, energy and other factors and the support of scientific and technological innovation, and thoroughly implement the four major actions.
The opportunity was struck
(Li Sheng, General Manager and Deputy Secretary of the Party Committee of FAW Jiefang)
The release and implementation of the Action Plan will add new impetus to the commercial vehicle market, which is in a period of recovery growth. At the FAW Jiefang 2024 media and investor exchange meeting held on April 2, Li Sheng, general manager and deputy secretary of the Party Committee of FAW Jiefang, also focused on the topic of trade-in.
Li Sheng believes that policy guidance, including environmental governance and trade-in, is a significant benefit to enterprises. In particular, for the trade-in, it can be interpreted from two aspects: first, with the acceleration of the trade-in of household appliances, the volume of logistics before and after production will increase, which can stimulate the demand for vehicles to a certain extent;
Yu Changxin, member of the Party Committee and executive deputy general manager of FAW Jiefang, was interviewed by the reporter of "China Logistics and Procurement" on "What are the market opportunities behind the Action Plan". He said that from the first quarter of the operation, the number of wholesale manufacturers is growing, but the number of licenses and insurance is declining, some down 16%, some down 20%, this decline is more fierce in domestic competition. At this time, the State Council issued relevant policies for trade-in, which gave the commercial vehicle industry a boost and was a rare development opportunity. This will provide a good opportunity for inventory digestion and green transformation, and liberate expectations for the full implementation of the policy.
In this regard, Yu Changxin pointed out that the following points will be started: first, to find the target group of the relevant obsolete models, which is what the marketers must do; second, to confirm the real needs of users to change cars, on the basis of the "action plan" and local policies, to further introduce a more powerful exclusive policy, "benefit" users; third, to open up the user exchange blockage.
(Yu Changxin, member of the Party Committee and executive deputy general manager of FAW Jiefang)
"In this regard, we laid out relatively early, a few years ago the establishment of the liberation of the boundary, the main core is to grasp the second-hand car business, the past two years have been effective, the second-hand car park is about to be established in Yuanshi County, Shijiazhuang, Hebei. In the future, we will open up the industrial chain of remanufacturing, re-maintenance and re-sale of second-hand cars, including re-export, and then open up the trade-in policy. Yu Changxin told reporters, "Now, the biggest difficulty is when the government's support policies can be implemented." We hope that the sooner the better, and the liberation has already completed the relevant plan!"
According to the reporter's understanding, in addition to the liberation of "ready to go", some car companies have now launched a trade-in service policy, and some new energy car companies are promoting users to exchange for pure electric, hybrid, hydrogen energy and other products with different degrees of preferential treatment and subsidies.
Speed up the landing
Enterprises are looking forward to the accelerated implementation of the Action Plan, and it is gratifying that the relevant supporting measures and trade-in measures in various places are also speeding up.
First of all, in order to promote the better implementation of policies, the Action Plan has taken multiple measures to strengthen policy guarantees. For example, in terms of increasing fiscal policy support, the central government and local governments will jointly support the trade-in of consumer goods, and support the trade-in of eligible vehicles through the energy-saving and emission reduction subsidy funds arranged by the central government; continue to implement subsidies for the renewal of old operating vehicles and ships, and support the renewal of old ships and diesel trucks; and encourage qualified localities to make overall use of the urban transport development incentive funds arranged by the central government to support the renewal of new energy buses and batteries.
For another example, in terms of optimizing financial support, banking institutions are encouraged to appropriately reduce the down payment ratio of passenger car loans and reasonably determine the term and credit line of automobile loans under the premise of legal compliance and controllable risks. According to the reporter's understanding, at the end of March, the People's Bank of China and the State Administration of Financial Supervision and Administration jointly issued the "Notice on Adjusting the Relevant Policies of Auto Loans", proposing that the maximum disbursement ratio of loans for self-use traditional power vehicles and self-use new energy vehicles shall be determined by financial institutions independently; the maximum disbursement ratio of loans for commercial traditional power vehicles is 70%, the maximum disbursement ratio of commercial new energy vehicle loans is 75%; and the maximum disbursement ratio of second-hand car loans is 70%.
Secondly, various localities have set off a trend of exchanging the old for the new, including Shandong, Shanxi, Guangdong, Hunan and other places, are actively deploying. For example, on April 3, the "Shanxi Province to promote large-scale equipment renewal and consumer goods trade-in implementation plan" was released, proposing to make concerted efforts in the identification of vehicle emission standards, operation management, vehicle dismantling, cancellation of registration and other links, and take comprehensive measures such as economic compensation, restriction of use and strengthening supervision and law enforcement, to promote the elimination of diesel trucks operating under the emission standards of China IV and below;
On April 4, the "Implementation Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in in Shandong Province" was released, proposing that by 2025, the number of new energy vehicles will reach more than 3 million, and non-operating diesel trucks of China III and below will be basically eliminated, and the number of scrapped vehicles will be recycled and dismantled to 600,000, and the ratio of second-hand car transactions to new car sales will reach 0.8:1. At the same time, it is clearly proposed to encourage the use of new energy vehicles when concrete mixer trucks are renewed, and accelerate the elimination of non-operating diesel trucks with emission standards of China III and below.
Obviously, with the implementation of a new round of large-scale equipment renewal and consumer goods trade-in policies, it will be better to coordinate and expand effective demand and strengthen supply-side structural reforms. From the perspective of commercial vehicles, it will also promote product upgrading, stimulate market vitality, and actively contribute to the high-end, green and intelligent development of the industry.