Auto industry continues to recover and exhibit resilience (Rui Finance)
China is an important global auto market. Auto retail sales account for about 10% of China's total retail sales of goods, related taxes accounted for total tax revenues, and related employees accounted for about 10% of total urban employment.
After the outbreak of the new crown pneumonia, the performance of the auto market became the focus.
Recent data show that China's auto production and sales have maintained steady growth, and the recovery of the auto industry is continuing.
In the future, policies such as promoting automobile consumption and industrial innovation and upgrading will be increased, which is expected to promote the continued development of the industry.
Automobile production and sales increased for 8 consecutive months
Recently, the "New Energy Vehicles to the Countryside" event that lasted for many months ushered in the final battle in Kunming, Yunnan.
Taking into account the many advantages of promoting new energy vehicles in rural areas, in July this year, the Ministry of Industry and Information Technology, together with the Ministry of Agriculture and Rural Affairs and the Ministry of Commerce, organized this activity.
According to Luo Junjie, Director of the Equipment Industry Division I of the Ministry of Industry and Information Technology, according to preliminary statistics, the sales of new energy vehicles to the countryside in the past four months have exceeded 180,000.
This trip to the countryside not only produced a batch of new energy automobile star products, but also promoted the overall upgrade of rural consumption and tested the potential of the automobile market.
According to data from the China Association of Automobile Manufacturers, in November, the production and sales of new energy vehicles in China reached 198,000 and 200,000 vehicles, an increase of 75.1% and 104.9% year-on-year.
The overall automotive industry also continued its growth trend.
Data show that in November, the production and sales of automobiles completed 2.847 million and 2.770 million, respectively, an increase of 9.6% and 12.6% year-on-year.
As of this month, automobile production and sales have shown growth for eight consecutive months, and sales have maintained a growth rate of more than 10% for seven consecutive months.
Cumulatively, from January to November, the production and sales of automobiles were 22.372 million and 22.470 million, down 3% and 2.9% year-on-year, respectively. The decline continued to narrow by 1.6 and 1.8 percentage points from January to October.
"Looking back on 2020, from the beginning of the year, affected by the new crown pneumonia epidemic, the market pressed the'pause button' and gradually recovered in the second quarter. In the third quarter, it climbed against the trend and fully recovered in the fourth quarter, basically achieving the same level as last year." China Fu Bingfeng, executive vice president and secretary general of the Association of Automobile Manufacturers, said that 2020 will be an extraordinary year for the Chinese auto market, and it also fully reflects the strong resilience of the Chinese auto industry and the strong resilience of the Chinese economy. .
Annual sales may reach 25 million
The automobile industry has a long chain, a wide range of areas, and a high degree of internationalization. Since the beginning of this year, it has been greatly affected by the outbreak of new crown pneumonia.
The gradual recovery of the auto industry is inseparable from the pull of the consumer side and the continuous upgrade of the supply side.
On the consumer side, policies to promote consumption are stepped up.
Increasing indicators for passenger cars, subsidies for purchasing new energy vehicles, subsidies for car trade-in, etc., various localities have successively launched various forms of promotional activities, which have better released the automotive market demand.
In terms of exports, the market continued its recovery since September.
For example, Changchun Customs has introduced measures to smooth the logistics channels for goods related to the automobile industry, support the temporary entry and exit of auto parts, and support returnees studying abroad to purchase duty-free domestic cars. From January to October, the province’s vehicles (including chassis) and auto parts are imported. Exports were 41.66 billion yuan, an increase of 4.2% year-on-year.
On the supply side, in order to adapt to the development trend of vehicle electrification, intelligence, and connectivity, relevant departments organize research on key technologies of intelligent connected vehicles and demonstrations of manned and passenger applications, and promote the research and development of cutting-edge technologies such as computing platforms and lidars. Initial results have also been achieved.
Luo Junjie introduced that at present, 15% of newly-listed models are equipped with L2 autopilot systems, and the development of the intelligent networked automobile industry has maintained a good momentum.
In Fu Bingfeng's view, governments at all levels have actively introduced a series of policies to promote automobile consumption, which has better released the demand of the automobile market and played a positive role in promoting the recovery of the automobile market.
At the same time, electrification, intelligence, and networking have become new opportunities for the development of the automotive industry.
The China Association of Automobile Manufacturers predicts that China's auto sales this year is expected to reach 25 million vehicles, and the year-on-year decline may narrow to less than 2%, much better than expected at the beginning of the year.
Promote the double upgrade of industrial consumption
The recovery of the automobile industry is fundamentally inseparable from the market demand behind it.
"The overall potential of China's auto market is still huge." Fu Bingfeng said, due to the net population growth in the first, second and third tier cities, the rigid demand for cars is still very large; in other cities and rural areas, the consumption potential has not been fully released. The consumer demand of China has yet to be tapped.
Looking to the future, the direction to promote the dual upgrade of automobile consumption and industry has been clear.
On the one hand, increasing industrial innovation has spawned new consumer demand.
The Ministry of Industry and Information Technology stated that it will coordinate the advancement of the in-depth integration and development of industries such as automobiles and energy, transportation, and information and communications, launch a pilot city for the coordinated development of smart city infrastructure and smart connected vehicles, and develop more leisure, entertainment and life services suitable for consumers , Autopilot and other functions have spawned more consumer demand.
On the other hand, improve policies and measures to promote automobile consumption.
Many departments expressed that they encourage local governments to introduce more preferential policies for real money, and at the same time, they will formulate a plan for car going to the countryside to further promote the consumption upgrade of rural cars, start the declaration of fully electrified pilot cities, etc., to effectively drive the electrification of the public sector. Private new energy vehicle consumption.
The China Association of Automobile Manufacturers predicts that the auto market will show a slow growth next year, and the auto market will remain stable in the next five years. It is expected to reach 30 million vehicles in 2025.
At the same time, changes in the external environment such as the reshaping of the global industrial chain have also brought pressure on the auto industry.
"In general, we are optimistic about the future of China's auto industry, and at the same time, we must be alert to the impact of changes in the external environment." Fu Bingfeng said.
Li Jie