Experts said that after the reduction of state subsidies, local governments will start a large-scale subsidy policy, which will undoubtedly bring the benefits of slowing down manufacturing and marketing costs and promoting automobile consumption in the region for car companies in the jurisdiction.

  At the National Two Sessions in 2023, the government work report pointed out that it is necessary to "focus on expanding domestic demand. Prioritize the recovery and expansion of consumption. Stabilize bulk consumption."

  In March, a number of car companies in Hubei Province started the marketing plan of "Shanghai Hubei brand, get comprehensive subsidies from government and enterprises", led by Dongfeng Honda, Dongfeng Citroen, Dongfeng Peugeot, Dongfeng Fengshen, Lantu Automobile, General Motors and other vehicles Enterprises have released promotional posters with comprehensive subsidies to attract users to the store.

  Among them, Dongfeng Honda and Dongfeng Citroen's biggest discounts reached 68,000 yuan and 90,000 yuan respectively.

A Dongfeng Citroen dealer told the Shell Finance reporter: These days are almost "overcrowded".

  Under the huge discount of comprehensive subsidies, the vitality of the market seems to be activated again.

  Zhang Hong, Secretary-General of the New Energy Automobile Branch of the Circulation Association, believes that after the reduction of state subsidies, the local government has launched a large-scale subsidy policy, which will undoubtedly bring the benefits of slowing down manufacturing and marketing costs and promoting automobile consumption in the region.

Previously, at least four provinces and cities have adopted local subsidies. It is believed that if this move works, more local governments will follow up to help auto companies in their jurisdictions fill the financial pressure and gap after the reduction of state subsidies, and at the same time stimulate Boost car purchase aspirations in the region.

In response to the "commodity consumption" in the government work report, some dealers' stores are crowded

  A reporter from Shell Finance and Economics noticed that due to the impact of the poster promotion project, some 4S stores were already crowded on weekends.

According to insiders of Dongfeng Motor Corporation, the comprehensive subsidy is strong, and the subsidy period is limited to March 1 to March 31. Some consumers who hold money and wait and see will naturally choose to pay attention to the store.

Some consumers from other provinces even choose to go to Hubei to buy a car and get a license plate, and then drive back to the local area.

  "It's lively, it's really lively. But with so many orders, how we digest them, when we can deliver the car, and serve customers well has become a happy trouble." A local Citroen dealer in Hubei told the Shell Finance reporter .

  The sales specialists of Dongfeng Honda, Dongfeng Peugeot and other stores also shared the same view with the Shell Finance reporter.

  Wang Zhi, deputy secretary-general of the Hubei Circulation Association, told the Shell Finance reporter that promoting consumption this year is the focus of national economic work, and automobile consumption is an industry that governments at all levels focus on promoting consumption; Hubei and Wuhan are important positions for the automobile industry.

On the one hand, in response to national policies, government departments and car companies have carried out consumption promotion activities to stimulate the rapid recovery of local consumer economy; on the one hand, it has consolidated the status of Hubei's auto industry, laid the foundation for high-quality development, and provided consumers with substantial discounts to enjoy government benefits through consumption subsidy policies , Boost consumer confidence, but also inject vitality into enterprises and the market.

Since March, the effect has been obvious.

  However, some car company insiders pointed out that the current policy release is relatively sudden. The utilization rate of production capacity at the car company side is already very high, and the stock of parts and components produced is not particularly large. It is not easy to say whether a large number of new cars can be delivered quickly in March; In addition, the cars in Hubei are cheaper, and users will choose to buy new cars in Hubei across provinces. The final performance of the national sales still needs attention.

  However, the Shell Finance reporter also noticed that some cities in the Sichuan and Chongqing regions have launched car purchase subsidies in response to the country's call to promote the consumption of bulk commodities.

Brands such as Chevrolet have brought a nationwide direct drop in car purchases.

  Zhang Xiang, a visiting professor at the Yellow River Institute of Science and Technology, said that in the government work report of the two sessions of the country, "strive to expand domestic demand. Prioritize the recovery and expansion of consumption. Stabilize bulk consumption" and other content were mentioned, and the policy promotion of Hubei Province is also Respond to the call of the country.

"Consumption is one of the 'troika' of economic development, and it is also an area where the government has given greater support in recent years." He said.

The auto market needs a shot in the arm.

Is there any way to help the industry develop healthily in the future?

  Due to the decline of subsidies, the early release of purchasing power, and the Spring Festival holiday, the sales volume of China's auto market in 2023 is not optimistic. According to data from the Passenger Federation, in January 2023, the domestic retail sales of passenger cars in the narrow sense reached 1.293 million units. A year-on-year decrease of 37.9% and a month-on-month decrease of 40.4%.

Among them, the sales volume of SUV models in January was 623,000, a year-on-year decrease of 36.2% and a month-on-month decrease of 39%.

The negative growth of the overall market in January was in line with industry expectations.

In addition, in January 2023, the retail sales of fuel vehicles decreased by 45.1% year-on-year; the retail sales of new energy vehicles decreased by 6.3% year-on-year.

  The data for February has not yet been released, but the impact of the perennial "low season" at the beginning of the year will not disappear.

  Zhang Xiang believes that the value of automobiles is relatively high and can drive the development of related industries.

Many local governments have introduced policies to stimulate the auto market last year.

  He mentioned that buying a car is worth buying many other commodities, and promoting car consumption coincides with the promotion of bulk commodity consumption advocated by the state.

The current development of local auto companies in Hubei is also facing more challenges. Perhaps the policy also has the purpose of supporting the revitalization of enterprises.

  But industrial development requires sustainability. How can local governments help the automotive industry advance in the future?

  Zhang Hong believes that the government’s implementation of the national subsidy reduction must have its internal logic, that is, the development of auto companies should have enough strength to face fierce market competition, and the development of the auto industry should shift from the two-wheel drive of policy and market. Market single wheel drive.

With more subsidies, car companies will always be flowers in the greenhouse and children who will not grow up.

  He suggested that instead of investing a lot of money in short-term promotions for car companies, governments at all levels may make efforts in the market positioning of car companies, recruiting talents, optimizing and improving the business environment, etc., to improve the quality of car companies. competitiveness.

  Ling Ran, an auto analyst, pointed out that government subsidies can communicate more with auto companies and do activities that are closer to the development of the companies themselves.

For example, Dongfeng Honda just celebrated its 20th anniversary. Maybe it can guide users in the way of gratitude and feedback, or it can implement the sales model of "additional configuration without price increase" on some models.

In addition, it is also an option to guide users to the store experience through some price-cut models to better understand the brand image.

For example, the Citroen brand, although some models have reduced prices, but its core products Versailles C5X and Tianyi have no discounts.

This may be related to the tonality that the brand insists on.

  But even if consumers don't buy a car, they can learn about the cultural value behind a brand when they visit the store.

  Ling Ran said bluntly: "A more abundant form of sales other than price cuts may have a smaller and less noticeable impact on consumers' brand awareness."