China issues new stimulus to boost auto sales TechNode

0

Chinese local governments are releasing economic stimulus plans to boost consumption, including measures to boost car sales, as Shanghai gradually emerges from a two-month Covid-19 lockdown.

Why is this important: The latest government measures, ranging from voucher schemes to new quotas, could be a sign of recovery in China’s auto sector, which has seen production halted and raw material prices surge amid a series of recent outbreaks. of Covid-19 across the country.

Details: Many Chinese cities have released a series of measures to help boost demand for cars as part of their economic stimulus package. On May 29, the Shanghai municipal government unveiled (in Chinese) 50 stimulus measures, including distributing 40,000 new license plates and distributing cash incentives to gasoline car owners trading in electric vehicles.

  • Consumers will also receive rebates of 10,000 RMB ($1,503) per car for trading gasoline vehicles for new electric vehicles (EVs) for the rest of the year, as mentioned in the WeChat Official Account notice. of the municipal government.
  • Cui Dongshu, general secretary of the China Passenger Car Association, told Jiemian News (in Chinese) on Monday that he expects Shanghai’s stimulus plan to boost passenger vehicle sales by about 150,000 units, two-thirds of which could be new energy vehicles, which includes all-electric vehicles and plug-in hybrids.
  • On Monday, a spokesperson for Nio told Chinese media The Paper on Monday that the company expects the stimulus measures to accelerate the adoption of electric vehicles, adding that orders for its models in the city have increased ” significantly” in May (our translation).
  • A number of local authorities have also provided similar cash grants for people to buy cars. Shenzhen announced Thursday (in Chinese) plans to lift its limits on the number of new vehicles allowed on city roads by allocating 20,000 new quota license plates and offering incentives of up to 20,000 RMB for the purchase of new cars.
  • Zhengzhou city in central China and Shenyang, capital of northeast Liaoning province, announced new RMB 100 million voucher programs to boost vehicle purchases at the beginning of the month. Meanwhile, car buyers in the central city of Wuhan could receive a subsidy of 8,000 RMB or 3,000 RMB for each exchange of new energy vehicles or combustion engine vehicles, respectively.

The context: China’s central government has pledged to boost the current state subsidy to electric vehicle makers to encourage auto sales as the latest wave of Covid-19 cases has disrupted auto parts supply chains. and forced automakers to abandon their outlook for the year.

  • At a State Council executive meeting on May 23, Beijing unveiled dozens of new stimulus measures, including a 60 billion RMB car purchase tax cut, in hopes of helping industry to withstand the impact of the pandemic, reported the SCMP.
  • Auto sales in China nearly halved to 1.18 million units in April from the same period a year earlier, official figures showed. Major automakers such as Tesla have been hit hard by supply chain constraints and a month-long production shutdown.
  • Earlier this month, local electric vehicle makers Xpeng and Li Auto issued a gloomy outlook for the second quarter of this year after reporting record drops in vehicle deliveries in April.

Jill Shen is a Shanghai-based technology journalist. It covers Chinese mobility, autonomous vehicles and electric cars. Connect with her via email: jill.shen@technode.com or Twitter: @yushan_shen More by Jill Shen

Share.

Comments are closed.