According to the analysis data of the national passenger car market in January released by the Passenger Transport Federation, in January, the adjustment of automobile production and sales was strong, with a total of 1.965 million vehicles produced, a year-on-year decline of 14.6%, which resulted in a reduction of 54000 vehicles in the manufacturer's inventory and 190000 vehicles in the channel's inventory, easing the inventory pressure. At the same time, the retail sales of passenger cars in January were 2.161 million, down 4.0% year on year and 2.8% month on month.
In terms of imported cars, in January, China imported 83000 cars, down 12% year on year, and the import amount was 4 billion dollars, down 6% year on year. In January, the average unit price of imported cars in China was 49000 US dollars, up 7% year on year, reflecting the high-end trend of consumer preference. It is worth noting that, according to the current data, the concentrated import of American cars has not brought about an increase in the import of the car market. On the contrary, domestic luxury brands have gradually become a consumption hotspot.
In terms of policy, on January 29 this year, the National Development and Reform Commission and other ten departments issued the Implementation Plan for Further Optimizing Supply to Promote Steady Consumption Growth and Promote the Formation of a Strong Domestic Market (2019). The program introduced measures to promote consumption in many aspects, such as rural residents' purchase of cars, new energy vehicles, and small displacement second-hand car transactions.
In order to promote the upgrading of rural automobiles, rural residents will be given appropriate subsidies to scrap tricycles, purchase trucks of 3.5 tons and below or passenger cars of 1.6 liters and below, so as to drive rural automobile consumption.
The Passenger Transport Federation believes that this policy is conducive to local governments' enthusiasm for promoting automobile consumption, to promoting residents' confidence in automobile purchase, and to counter cyclical regulation and stabilizing economic growth. At the same time, a new round of "automobile going to the countryside" after 2009 will also help to improve the depressed county and township markets.