China Automobile Association’s recommendation: increase the number plate replacement in areas with restricted purchases, encourage consumption in low-tier cities

China Automobile Association’s recommendation: increase the number plate replacement in areas with restricted purchases, encourage consumption in low-tier cities
On March 18, the China Association of Automobile Manufacturers (China Association of Automobile Manufacturers) put forward a number of policy recommendations to promote the steady growth of the automobile industry, formulate policies to stimulate consumption potential, and adjust the number of small-displacement passengers by appropriately increasing the number plate substitution in areas that include purchase restrictionsCar purchase tax rate, increase the encouragement of the fourth and fifth tier cities and township auto market and other policies to promote the steady growth of the auto industry and the healthy and sustainable development of the industry.  The China Automobile Association said that in 2018 and 2019, the auto market continued to decline due to factors such as macroeconomic downward pressure.In the face of the sudden new outbreak of pneumonia, the automotive industry is even worse, and the downward pressure on the industry is unprecedented.If the epidemic situation is effectively controlled at the end of March, it is expected that the production and sales in the first quarter will be reduced by about 45%, and the production and sales will be replaced by about 25% in the first half of the year.After the epidemic, the suppressed consumer demand will be released in the short term, and the automobile market will usher in a short-term consumption peak, but due to the decline in the income of some residents, especially the income of low- and middle-income people, resulting in the development of the automobile marketThe trend is still not optimistic.The key industries will show a trend of low before high.  Therefore, the China Automobile Association is critical and should introduce policies as soon as possible to stimulate consumption potential.For example, in areas where purchases are restricted, car license plates are appropriately replaced.Cities that have implemented car purchase restrictions should speed up the relaxation of purchase restrictions. Following Guangzhou, Shenzhen and Guiyang, Beijing, Shanghai, Tianjin, Hangzhou and other places are recommended to actively follow up the release of purchase restriction indicators, including conditional lifting of new energy vehicle purchase restrictions.The special additional supplement of personal income tax will be deducted from personal car purchase expenses.Especially for individuals who purchase energy-saving and environmentally friendly or new energy vehicles, they are allowed to replace their car purchases annually to promote car consumption.Adjust the small displacement (1.6L level or less) The purchase tax rate for passenger cars, for small displacement (1.(Level 6L or lower) Permanent implementation of tax rates, such as levied at half the current tax rate.Greater fourth-tier cities and township auto market encouragement policies, supplemented with cash, reduced vehicle purchase tax, separate tax deductions, reduced auto use cost and other forms, promote the growth of auto market consumption.The implementation of the replacement tax reduction and exemption compensation for vehicles with emissions of State III and below not only solves environmental protection measures, but also achieves consumption upgrades, driving domestic demand.To increase support for auto finance, it is recommended that the financial industry increase the support of special funds for personal consumer credit for automobiles from March to December 2020 to promote the release of the potential for auto consumption.Establish a vehicle information and data platform to promote vehicle circulation and second-hand vehicle consumption, actively break through circulation barriers, and allow all second-hand vehicles to circulate nationwide.  The China Automobile Association also suggested that it should continue to vigorously develop the new energy vehicle industry, and foster the characteristic consumption of automobiles such as pickups and RVs.The proposal pointed out that the new energy subsidy policy should be optimized and continued.Continue to provide supplements at the end of the use of new energy vehicles, and strengthen the speed of compensation for new energy vehicles; speed up the allocation of new energy vehicles, simplify the process, and reduce capital pressure for enterprises.Improve the ease of use of new energy vehicles, grant new energy vehicle licenses, road rights, parking fee reductions, toll reductions and other preferential policies, and restrict city purchases to cancel or add new energy vehicle license plates instead.Continue to increase the construction of new energy infrastructure, increase the use and publicity of new energy vehicles.  In terms of encouraging pickup truck and RV consumption, the China Automobile Association said that six provinces and cities have lifted the ban on pickup trucks entering the city. The implementation of these provinces and cities has shown that the effect is good.Therefore, it is recommended to fully lift the ban on pickup trucks entering the city, actively encourage the consumption of pickup trucks, and scientifically promote the development of pickup trucks.With the diversified development of consumer demand, car products with special functions such as RVs will be more and more favored. Therefore, focusing on these consumer development trends and encouraging the development of relevant characteristic models will foster emerging growth points for the emerging automotive market.The reporter promised to edit Sun Yong to proofread Wang Xin