Regional incentives don’t drive car companies looking for state subsidies New Deal

The country has not yet officially introduced a subsidy policy for the automobile to the countryside. Chongqing has already taken the lead in promulgating the local version of the subsidy New Deal. The local minicar companies have successively subsidized the subsidy. In view of the fact that the Chongqing subsidy is limited to self-production and sales in Chongqing, the industry generally believes that there is little effect on the mini vehicle market.

On the morning of May 31, the Chongqing Municipal Government held a teleconference for the Home Appliances Automotive Benefit Farmers Project, which covered the policies of the automotive benefits farmers section. One of the most compelling issues is that the rural population in Chongqing will immediately purchase mini-sized passenger cars with a capacity of 1.6 liters and below, and light-duty and mini-cargo trucks with a carrying capacity of less than 6 tons (including 6 tons). According to the purchase price of 6% of the car sales subsidies. That is, the maximum is no more than 3,000 yuan.

The two Chongqing minicar makers responded quickly. On the afternoon of May 31, Changan Automobile said that Changan Automobile will pay its own money and subsidize 4% of the relevant models. As a result, the government-industry joint force subsidy rate reached 10%, that is, a maximum subsidy of 5,000 yuan per vehicle. In early June, Dongfeng Xiaokang began to call Changan Automobile. Dongfeng Xiaokang stated that from June 2 onwards, subsidies will be given to “automobiles going to the countryside”. That is, on the basis of government subsidies of 6%, Dongfeng Xiaokang added 6% of subsidies. Once consumers purchase Dongfeng Xiaokang’s related models, they can get a maximum subsidy of 12% of the vehicle price, and the maximum subsidy can reach 5,500 yuan.

Yang Dayong, the head of the Changan Automobile Commercial Vehicle Management Department, said that he had no intention of playing a price war with Dongfeng Xiaokang. For Changan Automobile, self-financing of 4% of its subsidy is a tactical act: on the one hand, it reflects the linkage between government and enterprises, on the other hand, it also takes care of the feelings of consumers and allows them to have a subsidy rate of no less than the national subsidy preference for cars in 2009. . In 2009, the state has introduced a subsidy policy for the automobile to the countryside with a maximum subsidy of 10%. Yang Dayong stressed: "Changan Automobile is a leading automobile microcar company in Chongqing with a market share of about 70%." It means that it does not need to fight price war at all. It is understood that Changan Automobile has two micro-vehicle factories in Chongqing, with a total annual production capacity of 600,000 vehicles.

SAIC-GM-Wuling, as a leading micro-vehicle company in China, is closely watching the dynamics of autos going to the countryside. Yesterday, SAIC-GM-Wuling executives said that although local subsidy can boost mini-vehicle sales, its role is limited. The competitive advantage of SAIC-GM-Wuling products is quite obvious. There is no intention to join the subsidy war and there is no fear of subsidy pressure.

Yang Dayong believes that the micro-vehicle capacity in Chongqing is relatively small, ranking midstream and downstream in the country. It is expected that after government-enterprise cooperation subsidies, Changan Automobile-related mini-vehicle sales will increase by 4,000 to 5,000 vehicles, making a small contribution to Changan Automobile's overall contribution. In 2012, Changan Automobile planned to sell 850,000 microcars, and sold 280,000 cars in the first five months of this year. It is understood that the subsidy has little negative impact on the profitability of Changan Automobile Microcar. At present, the gross profit margin of Changan Automobile's old models is generally over 10%. The gross margin of the new products “Onuo” and “Jiniuxing” is far higher than that of the old products. The latter is the mini vehicle product that Changan Automobile currently focuses on.

In spite of this, the industry is still very much looking forward to the introduction of the automobile to the countryside policy. On June 5th, Guotai Junan (Hong Kong) pointed out in the research report that the joint introduction of policies by local governments and local car companies, although having a limited direct impact on national car sales, has a leading role, and it is expected that the country’s car-to-country policy will end at the end of the month. roll out.

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