Car companies implement policies to promote automobile consu

On February 13, Changan Auchan took the lead in implementing subsidies for car going to the countryside. The stock price of the auto sector rose, Changan Automobile (000625, diagnostic stock), Guangzhou Automobile Group (601238, diagnostic stock) (Hong Kong stocks 02238), SAIC (600104, diagnostic stock), Great Wall Motor (601633, diagnostic stock) (Hong Kong stocks 02333), Hippocampus (000572, diagnostic stocks) and so on rose.

The industry believes that the 10 ministries and commissions such as the National Development and Reform Commission recently introduced a policy to encourage auto consumption, and the first-line independent brands and low-end joint venture brands are expected to benefit.

Boosting automobile consumption

It is understood that the Changan Auchan model, which enjoys the subsidy policy for the car to the countryside, has six subsidies ranging from 3,000 yuan to 22,000 yuan.

China Securities Journal reporter learned from Changan Auchan that this year's car consumption policy is different from the 2009 policy. In 2009, the central government invested 5 billion yuan, and this time the encouragement was implemented by local governments. At present, the corresponding rules of the local government have not yet been issued. The company actively responded to the call of the state. At the same time, the old user groups based on Changan Auchan were concentrated in the third-fourth or even the fifth-six-six-line cities, so they took the lead in implementing subsidies for the countryside.

In addition to Changan Auchan, on February 11, FAW-Volkswagen launched a car-to-home policy of “10% down payment for new cars” and “maximum 10,000 yuan scrap subsidies”. It is reported that the main models of the car to the countryside policy are Jetta, 2018 Bora, a new generation of Bora, Wei Ling four models, the subsidy range is 2200-3000 yuan.

On January 28, 2019, the National Development and Reform Commission and the Ministry of Industry and Information Technology and other 10 ministries jointly issued the “Implementation Plan for Further Optimizing Supply to Promote Steady Growth in Consumption and Promote the Formation of a Strong Domestic Market (2019)”. Introduced six policies to promote automobile consumption: orderly promote the retirement of old cars, continuously optimize the subsidy structure of new energy vehicles, promote the upgrading of rural vehicles, steadily promote the relaxation of the restrictions on pickup trucks entering the city, accelerate the prosperity of the used car market, and further Optimize local government vehicle management measures.

For the promotion of rural car renewal, there are conditions where rural residents can scrap three-wheeled vehicles, purchase trucks of 3.5 tons or less or passenger cars of 1.6 liters or less, and give appropriate subsidies to drive rural cars. consumption.

In 2018, domestic automobile production and sales experienced negative growth for the first time in 28 years. The data shows that in 2018, the national automobile production reached 27.81 million units, down 4.2% year-on-year; the sales volume was 28.08 million units, down 2.8% year-on-year.

Previously, the subsidy policy for cars going to the countryside was introduced. The "Automotive Industry Adjustment and Revitalization Plan" released in January 2009 mentioned that from March 1 to December 31, 2009, the purchase of mini-buses with a displacement of 1.3 liters or less, and the resale of three-wheeled vehicles or low-speed trucks. For light trucks, a one-time financial subsidy will be given. Subsequently, the “car to the countryside” subsidy policy was extended for one year to December 31, 2010.

Self-owned car companies benefit

Lianxun Securities pointed out that in 2009 and 2015, two policies to stimulate automobile consumption such as purchase tax were introduced. After the introduction of the policy, the growth rate of automobile sales has increased rapidly, which has played a certain role in the growth of GDP.

China Merchants Securities (600999, Diagnostics) (Hong Kong stocks 06090) research report estimates, assuming policy support to encourage rural areas and some backward urban consumers to purchase 1.6L and below displacement models, each subsidy 2000 yuan to 5000 Yuan, calculated on the basis of 600 million people, involves about 10 million sales, and the annual subsidy may reach 30 billion yuan.

Industrial Securities (601377, Diagnostics) believes that sales of small-displacement low-end passenger cars and light trucks are expected to boost, and autonomous car companies with rich product layouts ranging from 50,000 to 100,000 are expected to benefit. In 2009, the subsidies for car going to the countryside and old-for-new subsidies came from new central government investment, and this round of old-for-new and rural car consumption subsidy policies was delegated to local governments, and subsidies were transferred from the central government to the local government, compared with the previous car to the countryside and purchase. The tax halving stimulus policy has weakened.

An auto industry analyst told China Securities Journal that if there is a local government to provide subsidies, high-quality independent auto companies are expected to benefit, and related listed companies include Geely Automobile (Hong Kong stock 00175), Great Wall Motor, Changan Automobile, SAIC Group, Guangzhou Automobile Group, etc.

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