Li Qingwen: It is imperative to give priority to the implementation of "cars to the countryside"

This year, the domestic auto market has been in a state of depression. In May, the media continued to report that in order to prevent the economic growth from a downward trend, the government will introduce a new round of auto consumption stimulus policies. On May 16, the energy-saving vehicle subsidy policy was first introduced. On June 14, the Ministry of Finance and the Ministry of Commerce jointly issued the “New Deal” for the trade-in of vehicles. However, the car-to-country policy that has been more hoped for by the industry has never been seen. According to sources, whether this policy was introduced again is still being discussed in the relevant government departments and there is some controversy, and the future of the car to go to the countryside is uncertain.

(I) The Origin of the Car-to-Country Policy and Its Implementation Effect

In response to the impact of the global financial crisis on China's auto industry, expanding domestic demand, stabilizing auto consumption, and promoting the sustained and healthy development of China's auto industry, the State Council promulgated and implemented the “Regulations for the Adjustment and Revitalization of the Auto Industry” in February 2009. Among them, the development of "cars to the countryside" has become one of the important measures for "promoting consumption." According to the plan, the Ministry of Finance will allocate 5 billion yuan in the newly-added central government investment. From March 1 to December 31, 2009, farmers will purchase mini-buses and motorcycles with a displacement of 1.3 L or less, or farm vehicles. For scrapping and redemption of light trucks, a financial subsidy of 10% up to 5,000 yuan will be given.

The "car to the countryside" policy has been highly responsive in the rural market and has been widely welcomed by farmers. Although the 5,000 yuan seems to be small, but for the average price of micro-offers and micro-goods, which are mostly around 30,000 yuan, this concession is no small. At the time, there was also a 50% reduction in purchase tax. The combination of policies has a significant effect. According to statistics, the minibuses, minivans, and light trucks markets have experienced an extraordinary and substantial increase since the country implemented the car-to-country policy in 2009. From January to December of 2009, a total of 1,905,500 miniature passenger cars were sold domestically, an increase of 83.39% year-on-year; sales of mini trucks were 507,700, an increase of 70% year-on-year; sales of light goods vehicles were 1,559,600, an increase of 31% year-on-year. The three models mentioned above had a net increase of more than 1.5 million units in 2009, which contributed 34% to the nation’s total increase in automobile sales, which really played a role in expanding automobile consumption and stimulating economic growth. In 2010, due to the large base, the growth of the micro-customer market slowed down, with a year-on-year increase of 27.8%, and sales volume reached a new height of 2.49 million units.

It can be said that the car-to-country policy is truly numbered with the pulse of the market, and it is the best and least controversial leader in many automobile consumption stimulus policies introduced in recent years. However, this policy ceased to be implemented in 2011. The rural consumer car market that has just started is also coming to an abrupt end. Many auto companies that are trying to do something complain about the inconsistency of the policies. When the enthusiasm of both supply and demand is rising, the exit of the automobile to the countryside policy seems to be out of date.

Perhaps the reasons for the state's finances have prompted this good policy to end only after two years of implementation. Maybe this policy was first formulated as a short-term stimulus policy? We don't know. Recently, in the context of the declining auto market and increasing pressure from steady domestic economic growth, this policy has once again been put on the agenda of relevant government departments. This shows that the auto-going countryside policy is still effective and has unlimited potential. As for the good government that a company and the market are looking forward to, we call for it to be promulgated and implemented again as soon as possible.

(b) "Cars go to the countryside" is a policy that benefits the agriculture, rural areas, and the people.

The policy of car going to the countryside is a policy that truly benefits people's livelihood. It is a good thing for the farmers and a great benefit for the farmers. The fact that farmers own cars can not only improve the living standards of families, but also increase the production capacity and promote the transformation of rural life and production methods.

In recent years, the Party Central Committee and the State Council have adopted a series of policies that have been tilted toward rural areas. The burden on peasants has been greatly reduced, and their livelihood has been continuously improved. Many new rural areas with rapid economic development have emerged. A series of new rural construction policies and measures, such as urban and rural planning, agricultural supplementation, and town-promoting rural development, have created loose conditions for rural economic development, especially the implementation of the “Millions of Thousands of Villages Market Project” and the “village and village road access”. It has greatly improved the rural circulation situation and provided new impetus for stimulating rural market consumption. The process of modernization in rural areas has continuously expanded the scope of production, living, and business activities of farmers, and automobiles have become essential living tools and production materials for farmers. It can be said that the rural areas now have the conditions to use cars, and the current countryside also needs more and more cars.

However, on the whole, there are still a considerable number of peasants who are not prosperous. The purchase of large-size goods such as automobiles is still more than sufficient. Continuing to implement the subsidy policy for autos going to the countryside will enable some of the less affluent farmers to realize the car dream as soon as possible. Whether it is cars or micro-offers and micro-cargoes, it will not only be a simple consumer product for them, but will also be produced by farmers' friends. And getting rich tools, an important member of the family.

If the policy of autos going to the countryside continues, it will have important practical significance for accelerating the affluence of Chinese peasants and narrowing the gap between urban and rural areas. When private cars have become the main vehicle for most urban residents, China’s 700 million farmers should also have the right to think about Jiajia’s dream and gradually enjoy car civilization. The policy of autos going to the countryside is also an important policy for industry to nurture agriculture. From a large perspective, it is the country that uses the increased tax revenue from the growth of the automotive industry to feed back agriculture.

Therefore, I think that the policy of car going to the countryside should be used as a long-term strategic measure to solve the problems of agriculture, rural areas and farmers, and be implemented continuously with home appliances to the countryside so as to accelerate the realization of rural modernization.

(C) The policy of automobile going to the countryside is of great significance to promoting rural energy conservation and emission reduction

Not only does the car go to the countryside for high subsidies for farmers' scrapped agricultural vehicles, it also directly subsidizes the purchase of light trucks, minivans and minivans by farmers. The beneficiaries are not only farmers, but also conducive to rural energy conservation and emission reduction.

Energy saving and emission reduction in agriculture and rural areas are both a pressing task and a long-term and arduous task. To comprehensively promote the work of energy saving and emission reduction in agriculture and rural areas, mainly to improve the efficiency of energy use, reduce the discharge of pollutants, promote the use of energy and resources for waste, and take the path of development of biomass energy with Chinese characteristics.

Therefore, the automobile to rural areas policy can not only stimulate rural vehicle consumption, but also help to eliminate the serious pollution of agricultural vehicles (three-wheeled vehicles and low-speed trucks), reduce fuel consumption, reduce pollutant emissions, and promote the replacement of rural transport. Effectively improve the backward situation in rural transport and accelerate the building of a new socialist countryside.

Second, the car to the countryside is also conducive to promoting the adjustment of the structure of automotive products. In 2009, the automobile-to-country policy promoted the growth of minibuses, minivans and light goods vehicles below 1.3L. Light-duty trucks replaced at least 350,000 low-speed vehicles (agricultural vehicles), creating a miracle that produced the largest sales volume in the light truck market. Effectively promoted the replacement of rural transport and improved the consumption structure of rural vehicles. At the same time, important changes have taken place in the product structure of the automotive industry. According to data from 2010, at present, China's agricultural vehicle and low-speed automobile production enterprises have reached 130. In recent years, the output has been maintained at about 2 million, and the share of rural vehicle ownership has reached 36.8%. Although low-speed vehicles are not as capable of energy-saving, environmental protection and safety performance as light-duty trucks, they still have a certain market in the next five years due to their advantages of low prices and low maintenance technology requirements. Therefore, under the circumstance of increasing living standards and purchasing power of farmers, it is necessary to gradually change the structure of automobile products in the rural market through policy guidance. On the one hand, low-speed auto manufacturers need to move their product levels closer to light vehicles; on the other hand, auto manufacturers must further develop the auto products that farmers can afford, use well, and adapt to rural needs. One of the original purposes of the car-to-country policy is to guide farmers to purchase light goods vehicles. As the purchasing power of farmers increases, market pressure will force low-speed vehicle companies to accelerate technological transformation and shift to light trucks. This requires a gradual process. Therefore, the automobile-to-countryside policy, which is conducive to the development of the rural economy and the promotion of structural adjustment of auto products, should become one of the long-term strategic measures for China’s economy to “guarantee growth, expand domestic demand, adjust structure, and benefit people’s livelihood”.

(IV) Car-to-Country policies can help independent brand enterprises tide over the difficulties ahead

"The vast world is promising." This was the call made by Mao Zedong to encourage urban youth to study and exercise in rural areas. If we say that more than 40 years ago, this vast rural area nurtured a generation of urban educated youth, providing them with a world where one can display their talents; then, today, the rural market can still set up a position for the self-owned brand auto companies. , It has become a hot land for nourishing self-owned brands.

First of all, the consumer demand for automotive products in the rural market coincides with the product line of self-owned brands. The minibuses, minivans, and economical cars that are most needed in the rural market at the current stage are the leading products, the most competitive products, and the traditional advantages of independent brands. For example, in the Changan Automobile, SAIC-GM-Wuling's annual sales, micro-offers have always occupied a very high proportion. Xiali, BYD, and Geely’s economical sedan are also well-recognized in the rural market. According to statistics, in 2009 and 2010, the number of products such as micro-substances and micro-cargoes that were sold to the countryside in the automobile market had contributed more than 30% to the nationwide increase in car sales.

Second, autonomous car enterprises go to the countryside is a realistic choice. At present, the automobile market in the first-tier cities tends to be saturated, and the number of cities that implement purchase restrictions has continued to increase. The competition of joint venture brands in the secondary and tertiary markets is also increasingly fierce, and the market space for the development of independent brands is even more narrow. Autonomous car companies will find their own development stage in the rural market if they can use the incentives and benefits of the rural policy.

The last time the car went to the countryside also proved that the rural market welcomed its own branded products, and its own branded products were also suitable and adapted to the rural market. What is more important is that China is a big agricultural country, agriculture is the foundation of the national economy, farmers are a huge consumer group, and the rural market is a broad front for expanding domestic demand. In the face of such a huge potential market, of course, its own brand must also be used as the main battlefield for expanding sales.

In fact, after going through the market expansion of the car to the countryside and the continuous decline of the network in recent years, most independent brands have already established a good market foundation in rural areas. At the same time, the enthusiastic feedback from the rural market has also stimulated independent brands. The company has accelerated the R&D pace of its products and introduced more new products. If the rural policy is continued, independent car companies will be able to seize the opportunity to offer more mature products to farmers, increase sales, drive technology, improve services, enhance brand influence, and ultimately achieve autonomy. The development and growth of the business.

(5) "Cars going to the countryside" helps the automotive industry grow steadily

The automobile industry has become a pillar industry for the development of the national economy. Automobile consumption has become an important force for stimulating domestic demand. Its development and decline, both fast and slow, will affect the economic development. For this reason, when the financial crisis struck in 2008, the automotive industry was the first in the industry's industrial revitalization plan. In the first half of this year, when the goal of steady growth appeared to be under pressure, the auto industry was once again incorporated into the government's vision, and in a stimulus consumer policy, it could never fall out of the car.

The Chinese auto market took off from 2002 and has been developing at a high speed for 10 years. In the ten years, car sales increased from 2 million vehicles that year to 18 million vehicles in 2012, ranking first in the world for three consecutive years. The automobile industry has made great contributions to the rapid development of China's economy and is a well-deserved bright spot in the ten years of market entry. This bright color should be protected and should keep her glowing and warm.

If we say that the automobile industry is the backbone of the Chinese economy, then the rural market is the big rear of the Chinese automobile industry. Only she is the important force supporting the sustained and healthy development of the Chinese automobile market. For products entering the rural micro- and micro-products, their annual sales have already accounted for more than 10% of the total domestic sales of cars, and they have the ability to stabilize the market.

We should not underestimate micro-offers and micro-products. Without quantity accumulation, there can be no qualitative change. Of course, the automobile companies must also provide advanced technology products to the rural market. They must not be backward and soon to be eliminated. Therefore, the implementation of the policy to the countryside will ensure that the auto industry maintains a good growth rate.

Some people say that it will not be an exaggeration to say that automobile transportation to the countryside will bring revolutionary changes to the rural and automobile industries. Cars go to the countryside to benefit the country, benefit farmers, and benefit the auto companies. It is a multi-benefit measure. If it is implemented for a long time, it will definitely give rural areas in China a revolutionary change in the lives of the peasants, and it will also make a profound change in the automobile industry.

(6) In the current policies, the "output-output ratio" of cars to the countryside is best

We call for the introduction and implementation of a new car-to-country policy as soon as possible, but do not agree with the overall support and stimulation of the market that relies solely on policy. On the contrary, we maintain that under the condition that the total amount of financial subsidies is limited, the realization of the government’s goal of “recovering the market” or “rejuvenating” cannot rely on the simple superposition of various policies and “sprinkle the pepper”, but should compare the various policies. On the basis of input-output ratio, priority should be given to those policy types that have a good effect on market growth, support more independent brands, and are most urgently needed in the target market. Opposition to "policy competition" or "accumulation of policies" regardless of effectiveness or cost.

Based on this principle, we believe that compared with other market stimulus policies that are currently being implemented, car to the countryside is such a "best value" best policy, and this policy should be prioritized.

The trade-in policy, in China, is still in the stage of consumption of the first family car. Under the constraints of non-mainstream Chinese car conversion and unregulated use of the used car market, the fiscal policy for car consumption has been promoted to promote growth. Leverage is actually small.

The private consumption subsidy policy for new energy vehicles has been buzzing loudly in the past two years. The amount of subsidies is also very impressive (50,000 yuan per vehicle, 60,000 yuan, and even more for commercial vehicles), but from the actual effect, the implementation of two years, due to Under the constraints of factors such as immature products, inadequate infrastructure required for consumption, and lack of consumer awareness, it has not been able to truly enter the general consumer market.

The energy-saving vehicle subsidy policy (1.6L and below are in line with the so-called energy-saving conditions) is indeed the highlight of the 2009 round of automobile consumption encouragement policies. The coverage is wide and the impact is large, but if it is not the severe economic environment at the time, " The “subsidy” of rain and dew, which is of the same nature, seems to have a good effect, but it is inaccurate. It deviates from the principle of maximizing support for independent brands under international rules, and the “input and output” of policies is not worth the candle.

The policy of reducing or exempting some types of vehicle and boat taxes is also a policy of being accorded to the car beings. However, due to the small tax amount, the leverage in the short term is weak.

In comparison, only the policy of car-to-country is more in line with the current goal of “maximizing input-output ratio”: it can both reflect the policy orientation of encouraging energy conservation and it is actually compatible with the concept of encouraging independent scientific development; it uses the most price-resilient models. Products are the subject of policy subsidies, and they are based on the policies of the prefecture market and even the township market. Therefore, compared with the above-mentioned policies, the automobile can go to the countryside to exert the best policy leverage effect, which is the best choice for the current stimulus policy.

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