Adjusted energy-saving vehicle subsidies have limited impact

According to the notice of the ministries and commissions of the Ministry of Finance, the National Development and Reform Commission and the Ministry of Industry and Information Technology, in order to continue to guide and encourage auto manufacturers to increase investment in energy-saving technology research and development, promote the optimization and upgrading of product structure, and gradually reduce fuel consumption levels, according to industry advances in energy-saving technologies, fuel consumption standards, etc. The Ministry of Finance, the National Development and Reform Commission and the Ministry of Industry and Information Technology have agreed to the approval of the State Council and decided to adjust the existing energy-saving vehicle promotion subsidy policies. The main content is the implementation of the current energy-saving vehicle promotion subsidy policy to September 30, 2011; from October 1, 2011 the implementation of new energy-saving vehicle promotion subsidy policy.

Some analysts believe that after the energy-saving vehicle subsidy threshold has been raised, the number of subsidized vehicles will be reduced from 433 to less than 40. This move will have a major impact on the domestic auto market. However, some analysts believe that the impact is limited.

The 4 million small-displacement passenger vehicles benefited from the implementation of the State Council's “Notice of Further Enlarging Work to Ensure Implementation of the “Eleventh Five-Year Plan” Energy Saving and Emission Reduction Targets”, approved by the State Council, the Ministry of Finance, the National Reform Commission, and the Ministry of Industry and Information Technology. Will organize energy-saving car promotion work. According to the “Notice of the Ministry of Finance and the National Development and Reform Commission on Launching the “Energy-saving Products Benefiting the People Project””, the three ministries and commissions formulated the “Implementation Rules for the Promotion of Energy-saving Products Benefiting People’s Projects” for energy-saving vehicles (1.6-liter or less passenger cars). It was issued on May 26, 2010.

According to this Implementing Regulation, from June of last year, the fuel consumption of the integrated working conditions was lower than the current national fuel consumption standard by about 20%. In line with the conditions of energy-saving vehicles, the state finance provided a subsidy of RMB 3,000 per vehicle.

Since last June, the three ministries and commissions have announced six batches of energy-saving products Huimin project "energy-saving car promotion directory, a total of 433 models.

The relevant departments of the National Development and Reform Commission estimate that in the past year or so, about 4 million energy-saving vehicles have enjoyed a state financial subsidy of 3,000 yuan per vehicle. The state finance will broadcast 12 billion yuan for this purpose.

In order to enjoy the state subsidy policy, domestic automobile manufacturers have introduced small-displacement energy-saving vehicles, especially the number of small-displacement turbocharged vehicles with significant energy-saving effects. Not only did Shanghai Volkswagen, FAW-Volkswagen, and Shanghai GM launch 1.6L turbochargers plus advanced direct-injection advanced engine models, their independent brand manufacturers, Great Wall Motors and BYD also introduced new turbocharged engine models. Since the launch of the energy-saving vehicle promotion work, the domestic market share of energy-saving automobiles has increased substantially, and the technological progress of energy-saving automobiles has been significantly accelerated.

Why the threshold of energy-saving vehicles increased According to the regulations of the three ministries and commissions, the maximum fuel consumption standard for short-listed cars was increased from 6.9L in the previous 100 kilometers to 6.3L. The promotion subsidy standard will remain unchanged, that is, a one-off 3,000-yuan subsidy will continue to be paid for consumers to purchase energy-saving cars, which will be paid to the purchaser at the time of sales.

The effect of energy-saving vehicle subsidies is so good. Why raise the threshold?

In fact, as early as the first half of this year, it was said that the state will cancel the energy-saving vehicle subsidies on June 1. The reason is that 5 billion financial special subsidies have been used up. In fact, this argument is unfounded.

Unlike the policy of encouraging car consumption, such as reduction of vehicle purchase tax, automobile transportation to the countryside, trade-in replacement, etc., the purpose of the energy-saving vehicle subsidy policy is not to encourage the expansion of automobile consumption, but to specialize in energy saving and emission reduction technologies, which is the “energy-saving products benefiting people’s projects”. An important content, the focus is energy-saving emission reduction.

During the 11th Five-Year Plan period, the state organized a special energy-saving and emission-reduction science and technology initiative and released a national list of key energy-saving technologies. The implementation of "energy-saving products Huimin project", the use of financial subsidies, promotion of energy-efficient air-conditioning, high-efficiency motor, energy-saving and new energy vehicles, energy-saving lamps. Obviously, it is not just cars that enjoy energy subsidies.

This year is the first year of the "Twelfth Five-Year Plan". During the 12th Five-Year Plan period, the task of energy conservation and emission reduction is still very heavy. Many policy measures during the 11th Five-Year Plan will continue to be implemented. Accelerating energy-saving technologies, product development and promotion will be a long-term task.

As an encouragement policy for responding to the international financial crisis and expanding automobile consumption, the state has introduced temporary measures such as the reduction of automobile purchase tax, subsidy for vehicles to the countryside, subsidies for trade-in, and so on since 2009. From January 1 this year, these policies will no longer be implemented.

Unlike temporary measures that encourage car consumption, car energy-saving and emission reduction is a long-term task. The purpose of energy-saving vehicle subsidies is to promote automobile companies to accelerate technological progress through the use of financial subsidies, and to produce more and better models with significant energy savings.

Reducing the fuel consumption of bicycles has become a global trend. Domestically, the third stage fuel consumption standard is brewing. The threshold for raising energy-saving vehicle subsidies is also to adapt to the current trend of automotive energy-saving technologies and to encourage the majority of auto companies to increase their efforts to reduce the fuel consumption of bicycles so as to promote energy conservation and emission reduction in the automotive sector.

In addition, the 433 models that enjoy energy-saving vehicle subsidies have already accounted for more than 60% of the domestic small-displacement models. The policy has benefited from being too wide and has not been able to encourage advanced functions. I am afraid this is also an important reason for raising the subsidy threshold.

Raising barriers to the impact on the auto market The consumers of small-displacement passenger cars are mainly working-class and low- and middle-income groups, and are particularly sensitive to prices. A car cheaper 3,000 yuan, for them, is a major advantage. The energy-saving vehicle subsidy policy strongly promotes the sales of the short-listed models. And those who did not enter the final model, manufacturers give the same subsidies, which greatly promoted the sales of small-displacement passenger cars.

According to the notice of the three ministries and commissions, from October 1 onwards, the promotion vehicles that can enjoy the subsidy can only enter the product's comprehensive fuel consumption standard. This standard sets different fuel consumption standards of 100 kilometers according to the quality of the vehicle's equipment. It is not the average fuel consumption of 6.9 liters per 100 kilometers.

According to the new standard, vehicles with a self-weight of less than 750 kilograms, whose fuel consumption is less than or equal to 4.8L for manual transmission and 100 kilometers for automatic transmission, are less than or equal to 5.2L. The models with self-respect between 1090 kg and 1205 kg have a manual fuel consumption of 6.0L and an automatic transmission of 6.3L. For models weighing more than 1,320 kilograms, the fuel consumption per 100 kilometers is 6.7L for manual transmission and 6.9L for automatic transmission. Therefore, whether or not you can enjoy subsidies for energy-saving vehicles has two major factors: First, the displacement must be less than 1.6L, and the second is linked to fuel consumption and self-respect.

How many of the 433 energy-saving car models that were shortlisted before can continue to enjoy subsidies, and the catalog of the three ministries has not yet been announced. However, according to the new standard, the number of models that can continue to enjoy subsidies is less than one-tenth. That is to say, starting from October 1, most of the models that originally benefited from subsidy will no longer receive subsidies.

During the National Day holiday this year, many car dealers slogan "the state does not make up for manufacturers" in order to attract consumers. There are also automotive consumers who believe that there are no energy subsidies and they have little effect on their consumer behavior.

Industry experts believe that since the energy-saving vehicle subsidies are deducted from the purchase price when consumers purchase cars, consumers do not feel obvious. In the case of large price concessions for automobiles, many consumers think that energy-saving subsidies were taken away by manufacturers or distributors and they did not enjoy them.

At present, the domestic auto market is very competitive, and the auto manufacturers have a large discount rate. Consumers pay more attention to the manufacturers' preferences when buying a car. Therefore, whether or not there are subsidies for energy-saving vehicles will have little impact on their purchase.