Guangzhou automobile consumption survey: subsidies begin to work, and the automobile market gradually thaws

category:Finance
 Guangzhou automobile consumption survey: subsidies begin to work, and the automobile market gradually thaws


Guangzhou Municipal Bureau of industry and information technology said recently that Guangzhou has introduced a number of measures to support the sustainable and healthy development of the automobile industry from three aspects: boosting the consumption of new energy vehicles, encouraging the upgrading of automobiles and creating an automobile consumption environment. It is estimated that the total output value will exceed 20 billion yuan.

Is the subsidy effective

Located in Huangpu Avenue, Guangzhou, the first shop of GAC Toyota has been bustling with customers for 20 years. However, the 4S shop, which sold 500-600 vehicles per month in the past, suffered from the impact of the epidemic, and the turnover in February fell sharply.

Novel coronavirus pneumonia was released in March 3rd. The Guangzhou municipal government issued a number of measures to resolutely win the new crown pneumonia prevention and control and strive to achieve the goal of economic and social development in the whole year. It mentioned the promotion of automobile consumption and accelerated the implementation of the June 2019 quota of 100 thousand new small and medium buses. Consumers will be given a comprehensive subsidy of 10000 yuan per vehicle for purchasing new energy vehicles; to promote the renewal of vehicles, consumers who replace or discard used vehicles will be given a subsidy of 3000 yuan per vehicle for purchasing national six standard new vehicles registered in Guangzhou.

In order to unfreeze the fast car market, car companies are adding more codes on the basis of government subsidies. GAC Toyota launched eight gifts on the same day, including up to 20000 yuan comprehensive subsidy (government plus manufacturers subsidy) for new energy vehicles, 3000 yuan extra subsidy for hybrid vehicles, etc. In addition, many local automobile enterprises in Guangzhou, such as GAC Honda, GAC trumpchi and GAC new energy, also subsidize terminal retail at their own expense.

In an interview with the first financial reporter on March 20, sales staff of Guangzhou Avenue South 4S store of Guangzhou Honda said that the store started to return to work gradually from February 1. Through offline and online two-way sales, there were some orders in February. Under the impact of the epidemic, some consumers have the demand to buy private cars. In March, sales orders stabilized. The hot selling new car haoying and Odyssey hybrid version have no discount in the store. Odysseys individual configuration and color models are affected by the epidemic and are out of stock so far. Accord can offer a discount of several thousand yuan, while the purchase of pure electric VE-1 can have a maximum subsidy of 36000 yuan (including government subsidy of 10000 yuan). The subsidy for this part of the government shall be applied for by the relevant departments after the consumers purchase the cars.

The salesmen of Dongfeng Nissan 4S store next to the Honda store also told the first financial reporter that the Guangzhou New Deal and the manufacturer also gave preferential policies. For example, consumers can save more than 20000 yuan by purchasing the Tianlai model, and the sales situation is better than that in February. However, some colleagues of Hubei nationality have not yet arrived at the store, and due to the failure to resume production in Xiangyang factory, some models will still be in short supply. Reporters at the scene saw that many of the models available for the store are mainly white, not as colorful as before, and the impact of the epidemic on production and sales can be seen from this.

Production and sales complement each other, but the epidemic has disrupted the pace. At present, although the main battleground of Guangzhou auto market has recovered, GAC group recently lowered its expected target of auto sales this year from 8% to about 3%. According to the statistics of the China Automobile Association, from January to February this year, Chinas automobile sales fell 42% year on year. In the same period, the sales volume of GAC group fell by 37.30%, which is better than the industry level, but it is more than 100000 vehicles less than the annual plan, especially the sales volume in February was only 19300 vehicles, down 81.08% year on year. Affected by the epidemic, the production of GAC group also dropped by 44.96% in January to February.

Zeng Qinghong, chairman of Guangqi group, said on Friday that the group was back to work, faced difficulties and recovery measures. He said that GAC now has more than 100000 employees and 190 investment enterprises. At present, the return to work rate is 99% and the capacity recovery rate is 70%. At present, there are two major difficulties, one is the shortage of spare parts supply in Hubei Province, the other is that the automobile market is relatively severe, and we hope to further implement the policy of promoting automobile consumption. Next, GAC group will take various measures such as overtime to recover the production plan, strengthen scientific and technological innovation, optimize products, promote sales, and strive to complete the annual production plan.

How to administer medicine

Zhong Yan (pseudonym), the owner of Guangzhou, plans to change his old car into SUV haoying or willanda within this year, but the sudden epidemic makes him worried about his future income and tangled up about whether to replace his new car.

Guangzhou is the home of Japanese cars, especially Honda and Toyota, ranking top two all year round. However, even the deep-rooted Japanese brands in Guangzhou auto market are beginning to shake.

Over the past two years, Chinas car market has been falling. Guangzhous car market is the only one of the first tier cities to maintain growth in 2018, and it has also declined in 2019. According to the data of Guangzhou Wilson Information Technology Co., Ltd. (hereinafter referred to as Wilson), the sales volume of vehicles in Guangzhou last year was 591700, down 4.53% from 619800 in 2018. According to the statistics of China Automobile Association, Chinas automobile sales fell by 8.2% last year.

Guangzhou auto market outperforms the market, which is closely related to the steady growth of Japanese Series cars. At present, Guangzhou car market is mainly divided by Japanese cars, independent brands and luxury cars. In 2019, Honda, Toyota and Nissan ranked the first, second and third place in Guangzhou automobile market with sales of 87000, 78000 and 49000 vehicles respectively. The three Japanese brands increased compared with 80000, 71000 and 48000 vehicles in 2018, respectively. In 2018, Guangzhou motor, the independent brand that took the third place of Nissan with 53000 vehicles, dropped to 38000 vehicles last year, ranking fourth. Last year, VW continued to rank fifth with 31000 vehicles, while BMWs sales continued to grow, rising to sixth with 23000 vehicles. BYD, Mercedes Benz, Guanzhi and Buick ranked seventh to tenth respectively. Except Mercedes Benz, the sales volume and ranking of the other three brands declined.

However, not all Japanese 4S stores have a good time in Guangzhou. Last Friday, the first financial reporter found that the gate of Guangzhou Ruiyi store of FAW Mazda, located in the south of Guangzhou Avenue, was locked and there was no car in the store. Reporters heard from people familiar with the situation that the 4S shop, which was founded in 2012 and had a good track record, could not survive the fierce market competition. In January this year, Guangzhou Ruiyi Automobile Co., Ltd. transferred all its business to Guangwu Yuda store in the north of Panyu Avenue, Guangzhou.

According to the data monitored by Wilson, affected by the epidemic, the sales volume of Guangzhou in January this year was 38832, down 44.4% year on year, while the sales volume in February was only 6460, a sharp decrease of 64.6% compared with 18250 in the same period last year. Not only Guangzhou, but also many data show that the situation of automobile industry in China is grim. According to the statistics of China Automobile Association, the production and sales of national automobile in February decreased by 79.8% and 79.1% respectively year on year. The CAAC said that the production side and enterprises output level is low due to slow resumption of work and supply of spare parts; the consumer side and product consumption are stagnant, and the market demand is severely restrained, which will have a significant impact on the automobile market in the first half of the year. The Federation also said that if there is no strong stimulus policy at the national level, the negative growth rate of the car market in 2020 may be further increased than previously expected, with the retail sales expected to decline by 8% year-on-year in 2020. The February inventory warning index also hit a record high due to weak terminal retail. According to the latest inventory early warning index survey of Chinas auto dealers released by China Automobile Circulation Association, the inventory early warning index of auto dealers in February 2020 is as high as 81.2%, up 27.7% year on year.

Wilson pointed out that affected by the epidemic, dealers generally hold a negative attitude. In the first two years, many dealers were eliminated in the declining environment of the car market. However, in 2020, the epidemic situation will be repeated. The living environment of dealers is more severe than that in 2019. It is estimated that the sales volume in the first quarter of 2020 will decrease by 50%. Dealers will face the situation of accelerating the reshuffle. Huang Heng, a senior analyst at Wilson, said that during this period, production and supply are the key. Whether consumers can mention cars in the short term will greatly affect sales. Good financial products and lowering the threshold of car purchase can also improve consumers willingness to buy cars.

A number of associations are also calling on the state to increase support for cars. Last week, the China Automobile Association issued a special research report on promoting the stable growth of the automobile industry, calling for the relaxation of the purchase restriction index, the inclusion of individual purchase expenses into the special additional deduction of personal tax, the appropriate adjustment of the double points assessment requirements of enterprises in 2020, and the optimization and continuation of new energy subsidy policies. The Federation also suggested that comprehensive measures should be taken, such as increasing the number of automobile purchase restriction indicators, implementing the reduction and exemption of purchase tax, keeping the subsidy of new energy vehicles steady, subsidizing micro electric vehicles to go to the countryside, and offsetting individual income tax for car purchase.

Shen Jinjin, President of China Automobile Circulation Association, recently told the first financial reporter that in order to activate consumption, he suggested that the government should remove some restrictive policies on automobile consumption and further remove restrictions on second-hand cars. Shen Jinjin said that before the introduction of the purchase restriction policy, local governments had to deal with the traffic congestion. Now, through economic leverage and scientific and technological means to moderately solve the congestion problem, such as charging congestion fees. With the rise of etc, it is no longer a problem to solve the road congestion by technical means. In addition, it is also important to adjust the automobile structure. Accelerating the circulation of used cars will also help to stimulate new car consumption. He also said that the epidemic affected the automobile market in a state of stagnation, but the fundamentals of Chinas economy have not changed. How to leverage the stagnant automobile market under the epidemic requires strong government policies to intervene, such as halving the purchase tax, etc. In addition, for vehicle enterprises and dealers, Shen Jinjin suggested that vehicle enterprises should grasp the production rhythm, work towards the direction of production by sales, strengthen innovation in marketing mode, and use Internet plus technology to empower marketing.

As for the trend of the car market next year, there is a pessimistic voice in the industry that it is difficult to get out of the trough throughout the year, while another voice is relatively optimistic that the car market will usher in retaliatory consumption. Shen said it would be judged only after the epidemic was clear.

Source: First Financial Editor: Guo Chenqi, nbj9931