March auto market growth slows down in the automotive industry "adjustment year"

More than half of March, but since March the sales growth of the auto market is still very slow. According to Cui Dongshu, the National Deputy Secretary-General for Passenger Utilization, car retail sales are still in a slumping trend in March. In the first week of this month, factory sales increased by 27% from the previous month. In the second week, sales rose by zero from the previous quarter, up only 5% year-on-year. "And the second quarter will not be too good." Cui Dongshu predicts.

The recovery in auto sales has been relatively slow since March, which fully demonstrates the loss of preferential policies. In 2011, the Chinese auto market is entering a cooling channel, and production and sales pressures have increased. 2011 will truly become the "adjustment year" of the auto market.

The reason why this happens is that Cui Dongshu said that at present, the trend of the real economy is not clear, and exports are relatively prosperous, but domestic demand is insufficient, so the recovery of the auto market lacks motivation. “The main reason for this is the overheating of car purchases at the end of 2010. This year’s situation is relatively more complex, especially with the structural losses caused by the dormancy in the Beijing market.”

At the just-concluded two sessions, representatives of the automotive industry conducted a comprehensive discussion on topics such as the upgrading of the auto industry, restructuring, and export and recall. Their "voice" may have given more hope to the dim auto market in 2011.

Two representatives of the two major auto companies waiting for the auto industry generally believe that the next 10 years, the development of the Chinese auto industry to achieve qualitative change, the need for the government to formulate a series of policies to support.

According to the information disclosed by the two associations, the two major policies of the “Energy-saving and New Energy Vehicle Industry Development Plan” and the “Car Three Guarantees Regulations” are expected to be introduced during the year.

During the two sessions of the National People's Congress, Ministry of Industry and Information Technology Minister Miao Wei stated that during the “12th Five-Year Plan” period, China will increase the merger and reorganization of the auto industry, and the government will create some environments and conditions for this purpose.

According to reports, the overall goal of the "12th Five-Year Plan" of the automotive industry is that China must transform from a big automobile country to a powerful automobile country. In the next five years, the Chinese auto industry will shift from a large scale to a strong one in the past. Specifically, on the one hand, it promotes the adoption of mergers and reorganizations to eliminate backward production capacity to solve the problem of structural overcapacity; on the other hand, it advocates the development of energy-saving vehicles including new energy vehicles.

Therefore, Miao Wei said that the "ten years outline" of new energy vehicles "energy-saving and new energy vehicle industry development plan" (2011-2020) is expected to be launched in the first half of this year. It is further reported that the plan is currently being signed by major ministries and will be announced after the two sessions.

This plan clarifies the development ideas of energy-saving and new energy vehicles. The state will strengthen the construction of urban infrastructure related to new energy vehicles and will increase capital investment to support the development and industrialization of core technologies and key components. The issuance of this document will help to consolidate the new energy technologies of domestic auto companies and better promote the demonstration pilot work.

In addition, the two associations also revealed that the "Car Three Guarantees Regulations" will be introduced this year. According to sources, the China Quality Certification Center has stated that the "Car Three Guarantees Regulations" will be issued in the first half of 2011, and the content is somewhat different from the version that solicited opinions from the public in 2005, which will rapidly increase the quality of automobiles in recent years. Disputes and after-sale protection have a substantial impact.

Encourage cars to "go out"

Automobile exports are also a hot topic.

Wang Fengying, president of Great Wall Motors, submitted a proposal that "proposes the formulation of a national strategy for China's auto going abroad." She said that in 2010, China’s total automobile production and sales volume reached 18 million, ranking first in the world. However, China’s auto exports amounted to 544,900, accounting for only 2.98% of the total output for the year. In order to allow the Chinese auto industry to move quickly and healthily to the international market, Wang Fengying proposes to increase the “going out” of Chinese cars to national strategies, formulate mandatory certification standards for “Chinese cars” from the national level, further standardize export order, and provide excellent Automobile export enterprises have more preferential policies such as taxation support, R&D subsidies, and credit support, and realize as early as possible the advancement of our country from a “car big country” to a “car power country”.

Li Weidou, a member of the National Committee of the Chinese People's Political Consultative Conference and general manager of China FAW Group Import and Export Corporation, also suggested that the policy of encouragement should shift from trade-oriented to investment-oriented. The government's incentive policies and support measures for exports are mainly measured by the scale and quantity of exports. It is proposed to re-study and adjust policy orientations and transfer the focus of government support and subsidies to overseas investment including assembly, production, network construction and service projects.