Chinanews.com, July 8th, the Electric Passenger Car Association released the analysis of the national passenger car market in June 2022 on the 8th. The analysis shows that the policy promoted the surge in the car market in June beyond expectations. The core factor of the policy-driven combination effect is that the policy is powerful.

　　Data show that in June 2022, the retail sales of the passenger car market reached 1.943 million units, a year-on-year increase of 22.6% and a month-on-month increase of 43.5%.

In June, the wholesale sales volume of manufacturers was 2.189 million, an increase of 42.3% year-on-year and a month-on-month increase of 37.6%. Driven by the new energy market, some car companies showed significant differences.

Manufacturers' wholesale sales from January to June reached 10.172 million units, a year-on-year increase of 3.4%.

　　By the end of 2021, the total number of passenger cars in China's auto market is estimated to be 256 million, and the number of vehicles per thousand people is only 183. The level of passenger car ownership is still low, and there is a good growth space and the basis for stimulating consumption.

In 2017, the sales volume of China's passenger car market has reached 24.22 million units, but only 21.1 million units will be sold in 2021. Currently, the market is in a period of low sales, while a large number of car buyers in the early stage are gradually entering the replacement cycle, and the potential market demand is relatively strong.

Recently, China's new energy vehicle market has shown an explosive growth trend. The market of pure electric vehicles is very strong, especially the A00-class electric vehicle is a pure incremental market. The strength of new energy in June has brought a huge incremental contribution.

　　The article said that compared with the reduction of vehicle purchase tax in 2009 and 2015, this policy has a wider scope of implementation and greater benefits.

In terms of the scope of implementation, the first two policies were aimed at passenger cars with a displacement of 1.6 liters and below, and this time it was clearly defined as 2.0 liters and below, so that more than 10 million passenger cars will be able to enjoy the policy benefits.

In mid-May, we estimated that the retail sales of the China Passenger Transport Association in 2022 would be 19 million units, a year-on-year decrease of 5%. Through the implementation of many new policies such as purchase tax concessions, and through seven months of efforts to promote consumption, the domestic retail sales for the whole year will reach 21 million. There will be more than 10 million passenger cars that can enjoy the preferential policy, and the expected increase of the policy is about 2 million.

　　The Passenger Federation also pointed out that the local consumption promotion policy in the traditional fuel vehicle market has been pragmatically promoted.

Since late May, various localities have released policies to promote consumption. More than 20 provinces and more than 40 cities have issued policies to promote consumption, ranging from car purchase subsidies, trade-in subsidies, replacement of new energy subsidies, issuance of consumer coupons, issuance of fuel cards, etc. Various policies to promote consumption are in full force, and some policies expire at the end of June. Therefore, the auto market in June has performed extremely well under the superposition of the start-up period of halving the car purchase tax and the upsurge of local consumption promotion.

(Zhongxin Finance)