How can trade-in disrupt the automotive industry?

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　　Recently, the "Action Plan for Promoting Large-Scale Equipment Updates and Trade-in of Consumer Goods" issued by the State Council proposed to carry out trade-in of old vehicles and increase policy support. With the implementation of this plan, the auto market will establish an effective mechanism that makes it easier to get rid of old cars and more willing to replace them with new ones, shortening the car replacement cycle for consumers. At the same time, it will further prosper the second-hand car market and promote high-quality development of the automobile industry.

　　"It's really cost-effective to buy a car during this period. Car companies have cut prices one after another, and there are financial subsidies. The total savings are tens of thousands of yuan." On March 26, Liu Hualin, a Chongqing citizen who had just picked up the car, happily told reporters that he was not satisfied At a price of 150,000 yuan, I purchased a Changan Qiyuan A07 True Fragrance Edition. Not only did I receive many gifts such as the installation of charging piles, but I also received a financial subsidy of 2,000 yuan.

　　The weather is getting warmer, and good news for the automotive industry this year is coming as expected. Recently, the "Action Plan for Promoting Large-Scale Equipment Updates and Trade-in of Consumer Goods for New" (hereinafter referred to as the "Plan") issued by the State Council proposed to carry out trade-in of old cars and increase policy support. Immediately, Chongqing launched a policy whereby consumers purchasing new cars can receive subsidies of up to 3,000 yuan per car.

　　The reporter learned from the Chongqing Municipal Commerce Commission that the scale of this round of subsidy policy funds is 20 million yuan, which will subsidize natural car owners who purchase new passenger cars (including new energy vehicles and fuel vehicles) from automobile sales companies within the jurisdiction of Chongqing. A municipal financial subsidy of 2,000 yuan will be given for each naked car purchased with a price of less than 200,000 yuan, and a subsidy of 3,000 yuan for each car purchased with a price of more than 200,000 yuan, which will be paid to a bank card in cash.

　　It is expected that “it will be easier to get rid of the old and more willing to replace with the new”

　　As the number of cars continues to increase, the problem of elimination of old cars and replacement of new cars has become increasingly prominent. In order to cope with this challenge, government departments have previously launched a car trade-in policy, aiming to promote the healthy development of the automobile consumer market.

　　"Looking back at the automobile consumption stimulus policies introduced before, they have significantly boosted industry sales." According to Zhu Huarong, chairman of Chongqing Changan Automobile, the trade-in of old cars with new ones is more targeted and will play a significant role in stimulating my country's car consumption and effectively open up consumption. Or the blocking point in the process of changing cars.

　　This "Plan" proposes to implement the trade-in action of consumer goods and carry out the trade-in of old cars. We will increase policy support, unblock circulation congestion points, and promote automobile tiered consumption and updated consumption. Organize and carry out national automobile trade-in promotion activities, encourage automobile manufacturers and sales companies to carry out promotional activities, and guide the industry to orderly competition. Support second-hand commodity circulation transactions. Continue to optimize second-hand car transaction registration management and promote convenient transactions.

　　Industry insiders pointed out that with the implementation of the "Plan", the auto market will establish an effective mechanism that makes it easier to get rid of old cars and more willing to replace them with new ones, shortening consumers' car replacement cycles, and simultaneously increasing domestic car ownership and vehicle condition levels. At the same time, it will further prosper the second-hand car market and achieve high-quality development of the automobile industry.

　　Helping the automotive industry become more intelligent

　　"With the surge in sales of Changan Automobile, various equipment used in the manufacturing of intelligent connected new energy vehicles in the workshop will need to be updated and upgraded this year, with hundreds of millions of yuan invested." said Yang Qiang, equipment manager of the final assembly workshop of Changan Automobile's Liangjiang plant.

　　From an environmental perspective, promoting the replacement of old cars with new ones will help reduce the number of old, high-emission cars, thereby alleviating the pressure on air pollution and traffic emissions. New cars tend to have higher energy efficiency and emission standards, which helps improve environmental quality and promote green travel. The "four major actions" proposed by the State Council this time include equipment updating, consumer product trade-in, recycling and standard improvement, which will fully benefit upstream and downstream automobile companies.

　　"The company spends more than 100 million yuan on equipment upgrades every year, mainly for technological transformation and expansion of production capacity. The new round of policies will accelerate the overall upgrade of Chongqing's manufacturing industry." Vice Chairman of Chongqing Akita Gear Co., Ltd. , President Liu Yi told reporters that Akita Gear spent 160 million yuan last year to update high-end motorcycle gear processing equipment and new energy vehicle gear processing equipment.

　　Mo Yuanming, a researcher at the Chengdu-Chongqing Economic Circle Collaborative Development Center of Chongqing Technology and Business University, believes that large-scale car trade-in activities will undoubtedly accelerate the iterative upgrading of automobile products. As consumers' requirements for automobile quality increase and the trend of intelligence and networking further strengthens, in-vehicle infotainment systems and Internet of Vehicles software will play a more critical role in helping the automotive industry move towards a higher level of digitalization and networking. modernization and intelligence, thereby seizing the opportunity in the transformation of the global automobile industry and leading the future development trend.

　　Look forward to the detailed rules for car trade-in being released as soon as possible

　　In response to the car trade-in policy, the Chongqing Municipal Commerce Commission mobilized car dealers, car manufacturers, banks and financial institutions, platform companies, and districts and counties to follow up and introduce supporting measures to create a strong atmosphere and work together to promote car consumption. As of late March, the supporting funds for relevant promotional policies from participating parties are expected to exceed 100 million yuan, and it is planned to provide comprehensive subsidies or price reductions ranging from 20,000 yuan to more than 100,000 yuan for more than 100 best-selling models.

　　Several Chongqing car sales staff told reporters that after learning about the old car trade-in policy, they are very much looking forward to the relevant details being released as soon as possible. "Traditional trade-in policies are mostly based on subsidies from car companies. Not only are the participating models limited, but consumers are not too 'cold'. If there is a large-scale subsidy policy, cars will sell faster." A salesperson said. On March 14, industry insiders introduced that the implementation methods and standard policy details of the automobile trade-in action plan are being formulated.

　　Yan Jinghui, a member of the expert committee of the China Automobile Dealers Association, believes that while replacement car buyers consider "replacing with new ones", they also consider "selling old ones." Before car dealers wait for the implementation of the trade-in policy, they should communicate with second-hand car channels in advance to make the replacement process more convenient.

　　However, for a long time, problems such as opaque information, geographical restrictions and lack of regulations in the second-hand car market have been the main obstacles restricting consumers from purchasing cars. Wang Xiaoyu, senior vice president of Guazi Used Cars, said that in response to these industry issues, Guazi Used Cars has launched a series of innovative services, such as "try for 7 days before buying a car", which can allow consumers to better understand the car's condition and speed up the car purchase decision-making process; The "car delivery to doorstep" service can improve inventory turnover efficiency.

　　Mo Yuanming pointed out that the implementation of the new round of car trade-in policy still faces some challenges and difficulties. The recycling and reuse of used cars must establish a complete system and mechanism, which requires a large amount of capital investment and technical support. How to mobilize the enthusiasm of all parties and form synergy is also a problem that needs to be solved.

　　Reporter Li Guo Workers Daily