China Economic Review: Promote the exchange of old cars for new ones, seize the new opportunities in the trillion market

2024-05-12 07:00 Source: China Economic Network
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(Editor in charge: Li Yan)

China Economic Review: Promote the exchange of old cars for new ones, seize the new opportunities in the trillion market

07:00, May 12, 2024     Source: China Economic Network    

   Core point: To promote the exchange of old cars for new cars, the biggest beneficiaries are consumers, and it is also conducive to promoting the transformation and upgrading of the automobile industry. The trade in of old cars is a complex system engineering. To promote this work, more subjects need to participate in it, take active actions and make contributions for a long time.

After more than ten years, a new round of car trade in has been rapidly launched nationwide.

China is the world's largest auto producer, seller and exporter. The automobile industry is one of the pillar industries of the national economy, and the automobile is also one of the important consumer goods. There are many upstream and downstream business entities in the automobile industry chain, and the proportion of automobile consumption in the total retail sales of social consumer goods has remained at about 10% all the year round. Obviously, the automobile industry plays an irreplaceable role in stabilizing growth, employment and expanding domestic demand.

At present, China has more than 340 million cars, and more than 16 million passenger cars with emission standards of the third country and below. The demand for upgrading is strong and the potential is huge. It is estimated that the size of the relevant new car market is above trillion yuan. In recent years, as the replacement of passenger cars has gradually become the mainstream demand in China's passenger car market, it should be said that the time is ripe to promote a new round of car replacement.

From the fourth meeting of the Central Finance and Economics Commission and the 27th executive meeting of the State Council, to the issuance of the Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Trade in, to the recent issuance of the Action Plan for Promoting Consumer Goods Trade in, and the Detailed Rules for the Implementation of Car Trade in Subsidies by the Ministry of Commerce and other departments, At present, a new round of car trade in has gone from top-level design to implementation. All localities actively followed up, introduced implementation plans one after another, and took multiple measures to stimulate the vitality of automobile consumption. Many car enterprises also actively respond, combining the old for new policy to launch a large amount of incentives.

Consumers are naturally the biggest beneficiaries of promoting the exchange of old cars for new ones. The superposition of "real gold and silver" measures, such as financial subsidies, tax relief, credit support, and enterprise preferences, effectively reduced the economic pressure on consumers to swap, and further stimulated consumer demand. The new car after the replacement brings about the improvement of life quality, especially the upgrading of new energy vehicles in the aspects of intelligence and low-carbon, which is also a real benefit.

It is worth noting that new energy vehicles have received key support and encouragement in the relevant policies of trade in from the central to local governments. At present, the automobile industry is at a critical stage of transformation and development, and new products and technologies are constantly updated and iterated. Data shows that in April, the retail penetration rate of new energy passenger vehicles in China reached 43.7%, which means that for every 100 passenger vehicles sold, more than 40 of them are new energy vehicles. The intelligent connected new energy vehicle can be called a "large terminal" integrating many technologies such as machinery, electronics, computing, perception, audio-visual, energy storage, which is also the main direction of the transformation and upgrading of the automobile industry. It is undoubtedly beneficial to further expand the application scope of advanced technology and accelerate its R&D and industrialization process to promote the transformation and upgrading of the automobile industry by promoting the exchange of old cars for new ones.

The trillion scale market is full of both new opportunities and challenges. In this regard, all major automobile enterprises need to continue to make efforts in independent innovation, brand building and marketing promotion, better meet market demand through full competition, and seize the opportunity to develop and grow.

You should know that the car trade in is a complex system project, involving new cars, used cars, scrapped cars, car aftermarket and other car life cycle links. To do a good job and achieve multi win, we need to accurately overcome the related difficulties, smooth the whole chain cycle, whether it is to speed up the construction of the second-hand car market, To improve the recycling system of power batteries is a part of the topic, which will further open up a new broad market space. At present, the target path of car replacement has been clarified. It is urgent and long-term to promote this work, which requires more subjects to participate in, take active actions and make contributions for a long time. (Deng Hao, commentator of China Economic Network)



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