Top ten policies affecting the automotive industry

2022-08-15
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Affect the top ten policies of the automotive industry in 2019

Wen/Zhang Xiaosha

understanding automotive industry policies is not only something that automobile manufacturers should pay attention to. As automobile dealers, policies also have a certain impact on automobile consumption behavior, thus affecting our performance. To this end, we have specially planned this policy review to explain and analyze the policies related to our immediate life/interests, and also predict some uncertain trend policies. Here we dedicate it to dear readers

I. liberalization of joint venture share ratio

maybe the era of "BMW Brilliance" is coming/the price of Tesla Model 3 will drop

◆ policy basis: on June 28, the national development and Reform Commission and the Ministry of Commerce issued the Special Administrative Measures for foreign investment access (negative list) (2018 version), which will be implemented from July 28, 2018

on April 10, 2018, at the Boao Forum, the country released the signal that "the next step is to relax the restrictions on the proportion of foreign capital shares in the automotive industry and other manufacturing industries as soon as possible". Subsequently, on April 17, the national development and Reform Commission announced the opening-up plan for the manufacturing industry, "the automotive industry will be opened in a transitional period by type, and the restrictions on the proportion of foreign capital in special purpose vehicles and new energy vehicles will be lifted in 2018; the restrictions on the proportion of foreign capital in commercial vehicles will be lifted in 2020; the restrictions on the proportion of foreign capital in passenger vehicles will be lifted in 2022, and the restrictions on the number of joint ventures not exceeding two will be lifted. Through the five-year transitional period, the automotive industry will all be lifted." Among them, the restrictions on the proportion of foreign shares of new energy vehicles were officially lifted and implemented from July 28, 2018

affected by this policy, the automotive industry has also undergone some changes. Event 1: on the evening of October 11, 2018, brilliance auto announced that it planned to sell 25% equity of BMW Brilliance to BMW by 2022, with a transaction price of 29 billion yuan. The transaction price was adjusted by reference to the valuation of 115.8 billion yuan of 100% equity of BMW Brilliance. Event 2: on July 10, 2018, Tesla signed an investment agreement with Shanghai Lingang, planning to build a wholly-owned factory in Lingang, and the annual output of the project will reach the production scale of 500000 complete vehicles. At that time, domestic models such as model 3 will be made in China

II. Relax product access/strictly control new fuel vehicle production capacity

expect more new vehicle manufacturers to enter the market and more interesting products to choose from

◆ policy basis: on October 24, 2018, the Ministry of industry and information technology announced the measures for the administration of road motor vehicle production enterprises and product access, which will be implemented from June 1, 2019; On December 10, 2018, the director's office meeting of the national development and Reform Commission reviewed and approved the provisions on the administration of investment in the automotive industry, which will be implemented from January 10, 2019

the release of the measures for the administration of road motor vehicle production enterprises and product access has greatly simplified the classification of automotive product categories in the past, and also affirmed and encouraged the "OEM" production mode according to the current new development trend of the automotive industry. In addition, the "exemption" privilege is added to the access conditions of vehicle enterprises. The original policy is as follows: "if the access conditions specified in these measures cannot be met due to the adoption of new technologies, new processes, new materials and other reasons, enterprises can apply for exemption of relevant access conditions when applying for the access of road motor vehicle production enterprises and products"

the policy of "Regulations on investment management of automobile industry" still follows the guidance of "strictly controlling the new production capacity of traditional fuel vehicles and actively promoting the healthy and orderly development of new energy vehicles". In addition, in the vehicle investment project, plug-in hybrid vehicles are included in the fuel vehicle investment project

these two policies have brought a lot of benefits to the enterprises of the new power of car making. At present, the OEM mode has been applied in the new power of car making. For example, the Weilai es8 is OEM by JAC, the Xiaopeng G3 is OEM by Haima, Jiangling is OEM for Aichi, the singularity is OEM by BAIC Changhe, and Xinte is OEM by FAW After the implementation of the policy, it is believed that more new car manufacturers will join the ranks of OEM

third, the implementation of national six in advance

please answer, should I buy national five car or national six car now

◆ policy basis: on December 23, 2016, the Ministry of environmental protection and the General Administration of quality supervision, inspection and Quarantine of the people's Republic of China jointly issued the light vehicle pollutant emission limits and measurement methods (China's sixth stage); On July 3, 2018, the State Council issued the three-year action plan for winning the blue sky defense war

according to the requirements of light vehicle pollutant emission limits and measurement methods (China's sixth stage), from July 1, 2020, all light vehicles sold and registered should meet the requirements of national six (a) limits. From July 1st, 2023, all light-duty vehicles sold and registered shall meet the requirements of national six (b) limit; According to the three-year action plan for winning the blue sky defense war issued by the State Council, it is clearly pointed out that the national six emission standards will be implemented in advance in key regions, the Pearl River Delta and Chengdu Chongqing

although the state has stipulated the national implementation time of national six, due to the great pressure of environmental protection in many regions, many provinces/cities have announced the implementation of national six ahead of schedule. For example, Shenzhen, Hangzhou and Chengdu have officially announced the implementation of the national six year plan in advance on July 1, 2019; Guangdong Province, Henan Province, Hebei Province, Shandong Province, Shanxi Province and other relevant documents have also proposed to implement the national six emissions from July 1, 2019, but no official document has been issued

IV. after the purchase tax legislation,

relying on the reduction and exemption of purchase tax to stimulate automobile market consumption may not work.

◆ policy basis: the vehicle purchase tax law of the people's Republic of China has been adopted by the seventh meeting of the Standing Committee of the 13th National People's Congress of the people's Republic of China on December 29, 2018 and will enter into force from July 1, 2019

on the last working day of 2018, that is, December 29, the seventh meeting of the Standing Committee of the 13th National People's Congress passed the vehicle purchase tax law of the people's Republic of China, which decided that the tax rate of vehicle purchase tax was still 10%. The law will come into force on July 1st, 2019, and the Provisional Regulations of the people's Republic of China on vehicle purchase tax promulgated by the State Council on October 22nd, 2000 will be abolished

for the vehicle purchase tax reduction policy, although there is no reduction or exemption at the national level, at present, many main engine manufacturers have spontaneously borne the purchase tax for users: during the period from December 1 to December 31, 2018, Chery's Ruihu 8, arize GX, arize ex, Ruihu 5x (1.5T models) and Ruihu 3x models provide the preferential policy of halving the purchase tax in the form of manufacturer subsidies. On December 1st, 2018, Harvard also announced the launch of the "50% purchase tax subsidy for new cars" campaign. Will these behaviors cause ripples in the auto market

v. "tariff reduction" meets the "Sino US trade war"

American imported cars are "uneasy" and expect the policy to stabilize next year

◆ policy basis: on May 22, 2018, the Tariff Commission of the State Council issued the "announcement of the Tariff Commission of the State Council on reducing the import tariffs of complete vehicles and parts"; On December 14, 2018, the Ministry of Finance issued the announcement of the Tariff Commission of the State Council on suspending the imposition of tariffs on automobiles and parts originating in the United States.

the announcement of the Tariff Commission of the State Council on reducing the import tariffs on finished automobiles and parts, which pointed out that the import tariffs on finished automobiles and parts will be reduced from July 1, 2018. Reduce the tax rate of 135 tax numbers with a vehicle tax rate of 25% and 4 tax numbers with a tax rate of 20% to 15%, and reduce the tax rate of 79 tax numbers with auto parts tax rates of 8%, 10%, 15%, 20% and 25% to 6%

the good times are not long, and the Sino US trade war officially kicked off: on June 15, 2018, the United States released a list of goods subject to tariff increases, which will impose a 25% tariff on about $50billion of goods imported from China from July 6. 1 The packaging box of the universal experimental machine of Jinan experimental machine factory is generally rattan skin or wooden box tax. The Tariff Commission of the State Council of China also decided to impose a 25% tariff on 659 imported goods of about US $50billion originating in the United States. Of course, imposing tariffs on cars and parts originating in the United States is a forced move for China to counter American trade protectionism. Finally, on the afternoon of December 14, 2018, the office of the Tariff Commission of the State Council issued an announcement: with the approval of the State Council, the Tariff Commission of the State Council decided to suspend the imposition of tariffs on automobiles and parts originating in the United States for three months from January 1, 2019, involving 211 tax items

during the Sino US trade war, similar to made in China, oncoway or withdrew from the U.S. market, Volvo applied to the United States for exemption from the high tariffs of Chinese made XC60, Volvo or cancelled the export of American made S60 to China, Tesla Model 3 price adjustment and so on. Fortunately, the Sino US trade war has come to an end

VI. after the implementation of the three fee reforms of commercial vehicle insurance, whether the price of vehicle insurance will rise or fall

◆ document name: on July 20, 2018, the China Banking and Insurance Regulatory Commission issued the notice of the general office of the China Banking and Insurance Commission on the relevant requirements for the supervision of commercial vehicle insurance rates, which will take effect from the date of its spontaneous publication

the reform of commercial vehicle insurance rate has gone through the pilot in 2015, the comprehensive promotion in 2016, the second fee reform in 2017, and the third fee reform in 2018, and entered a new stage. Its pace is not slow. The direction of insurance premium is to be more and more market-oriented, and the pricing power of vehicle insurance products is gradually handed over to the company to determine independently. In the future, the car insurance pricing of different customers will be more and more differentiated, the premium of high-quality customers will be cheaper, and the price of customers who often get out of danger will be higher, or even be refused insurance

the reform background of this idea is that the automobile insurance industry has always been in homogeneous competition due to its simple product form and easy imitation. Under the smoke of price war, the automobile insurance business is in a state of serious losses. The goal of regulatory reform is to force insurance companies to achieve accurate pricing through reform, promote the market from "cost war" and "price war" to benign competition with products and services as the core, and realize the sustainable development of the insurance industry

VII. "Double points" assessment is imminent

may I ask the OEMs, is there a big gap in points now

◆ document name: on July 2, 2018, the equipment industry department of the Ministry of industry and information technology issued the notice on the average fuel consumption of passenger car enterprises and the launch of the new energy vehicle points trading platform, clarifying the address of the points trading platform, the acquisition and function opening of the trading platform account, the relevant requirements of points trading, the review of points trading, etc

on December 4, 2018, the equipment industry development center of the Ministry of industry and information technology issued a notice requiring passenger car enterprises to submit data on the fuel consumption of passenger cars produced or imported and new energy passenger cars as required. Before December 20, 2018, all passenger car enterprises should also submit the 2019 annual points pre report to the Ministry of industry and information technology. In September 2017, the Ministry of industry and information technology, the Ministry of finance, the Ministry of Commerce, the General Administration of customs, the General Administration of quality supervision, inspection and quarantine and other five departments have jointly issued the "measures for the parallel management of average fuel consumption and new energy vehicle credits of passenger vehicle enterprises", which will be implemented from April 1, 2018. Starting from 2019, the new energy vehicle integral proportion requirements are officially set. In 2019 and 2020, the new energy vehicle integral proportion requirements are 10% and 12% respectively

in order to complete the points, on December 12, 2018, Dongfeng Motor released the new energy vehicle subsidy

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