From：Internet Info Agency 2019-03-07 21:08:21
At the end of last year, many people predicted that the Chinese auto market in 2019 may have zero growth or continue to grow negatively. Only few people think that positive growth will be achieved.
After Premier Li Keqiang made a government work report at the second meeting of the 13thNational People’s Congress on March 5, these predictions may have to be adjusted. A series of policy measures will bring several favorable factors to the Chinese auto market this year, and also will enhance confidence in achieving positive growth.
There are not many specific policies for the auto industry in the report, including expanding the opening up of automobiles, establishing new energy vehicle emerging industry clusters, stabilizing automobile consumption, and continuing to implement preferential policies for new energy vehicle purchases.
However, in the report, the reduction of manufacturing value-added tax, reducing the burden of corporate social insurance contributions, reducing industrial electricity prices, strengthening logistics infrastructure construction, reducing the cost of crossing bridges, promoting stable consumption growth, increasing citizens' income, enhancing consumption capacity, and paying attention to the three major pollution sources of industry, coal burning and motor vehicles, all of these have brought many favorable factors to auto production, auto consumption and autoutility.
Tax reduction is beneficial to the development of automobile manufacturing
The tax reduction and fee reduction, the reduction of electricity prices, and the reduction of the social insurance burden proposed by the government work report are all conducive to reducing the tax burden and reducing costs in the automobile manufacturing industry.
The manufacturing value-added tax has been lowered from the current 16% to 13%. This is a reduction in corporate value-added tax since the VAT was reduced from 17% to 16% last year.
Affected by many factors, China's auto industry suffered the first negative growth in 28 years in 2018. The automobile consumption was sluggish and many enterprises were under pressure. After the tax cut, it will have a certain effect on reducing tax burden and reducing business pressure for auto companies.
At present, for example, consumers purchase a car with a total price of 100,000 yuan, including a value-added tax of 16,000 yuan. After the VAT is reduced from 16% to 13%, each car will pay less than 3,000 yuan in taxes. It can effectively reduce the cost of the enterprise and also can also save some money for consumers.
Boosting consumers’confidence to Chinese auto market
Since China joined the WTO at the end of 2001, China’s auto market has repeatedly experienced skyrocketing increasing. After the “Golden Ten Years”, some people think that there still will be a “Silver Ten Years”.
At present, China's car ownership has exceeded 200 million, but in terms of the number of car ownership for thousands of people, China is still behind many countries. Some analysts believe that China's rigid demand for automobiles will exist for a long time.
In 2018, the reason why China's auto market experienced rare negative growth was external factors, not because of lack of consumer demand. However, consumers’confidence was hit heavily.
As Premier Li Keqiang said in the government work report: "The world economy is slowing down, protectionism and unilateralism are intensifying, international commodity prices fluctuating sharply, instability and uncertainty are increasing, and external input risks are rising. The downward pressure on China's economy has increased, consumption growth has slowed down, and effective investment growth has been weak. There are many difficulties in the real economy, and the financing problems of private and small enterprises have not been effectively alleviated. There is still a gap between the business environment and market expectation.
New Energy Vehicles is still the priority.
The development of new energy vehicles is the priority of the development of Chinese auto market and an important part of the Blue Sky Plan. Under the support of the government, China has become the world's largest manufacturer and seller of new energy vehicles for three consecutive years.
This move shows that the Chinese government continues to support the development of new energy vehicles. In recent years, subsidies for new energy vehicles have been declining year by year. However, we must also see that the recognition of new energy vehicles by car consumers is getting higher and higher. In addition to new energy passenger cars, new energy buses, new energy taxis and new energy logistics vehicles are also developing rapidly.
Some analysts believe that the comprehensive elimination of subsidies will help enterprises to survive the fittest and contribute to technological progress.
By the end of 2020, the state will completely cancel subsidies for new energy vehicles, but in terms of taxation, the state will continue to take measures to support it. The policy of exemption from vehicle purchase tax continues to be implemented.
