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News & info News

Tapping the Potential of Consumption and Promoting the Positive Cycle of New Energy Vehicle Market

日期: 2022-09-30
浏览次数: 1

Although the news of the extension of the policy of exemption from vehicle purchase tax for new energy vehicles did not come as a surprise to the industry, it was still a big positive for the automobile industry, and it also showed China's firm determination to promote the development of new energy vehicles.

On September 26th, the Ministry of Finance, the State Administration of Taxation and the Ministry of Industry and Information Technology issued the 'Announcement on Continuation of the Vehicle Purchase Tax Exemption Policy for New Energy Vehicles', which explicitly exempted the new energy vehicles due at the end of this year from the vehicle purchase tax policy and continued its implementation until the end of 2023. This is the third extension since China first implemented this policy in 2014.

Undoubtedly, the effect of exemption of vehicle purchase tax for new energy vehicles is obvious, which can effectively stimulate the consumption potential of new energy vehicles in China. According to the current policy, the vehicle purchase tax is 10% of the taxable value of taxable vehicles, which is about 8.85% of the vehicle price including VAT. According to the current price of mainstream new energy vehicles, this policy can save tens of thousands of yuan for most consumers of new energy vehicles. Extending the implementation period of the vehicle purchase tax exemption policy for new energy vehicles again will undoubtedly continue to stimulate the release of market demand, expand the consumption of new energy vehicles and boost the green and low-carbon development.

According to the data released by State Taxation Administration of The People's Republic of China, from January to July this year, new energy vehicles were exempted from vehicle purchase tax of 40.68 billion yuan, a year-on-year increase of 108.5%, of which 7.17 billion yuan was exempted in July, a year-on-year increase of 119.1%. This is the same frequency as the production and sales data of new energy vehicles. According to the statistics of China Association of Automobile Manufacturers, from January to August this year, the domestic production and sales of new energy vehicles were 3.97 million and 3.86 million respectively, up 1.2 times and 1.1 times respectively.

In the view of the industry, the continuous implementation of the vehicle purchase tax exemption policy for new energy vehicles is to stimulate consumption to drive the growth of the supply side, and to stimulate the development of the industry through the expansion of demand. Facts have proved that under the continuous effect of multiple favorable policies including exemption of vehicle purchase tax, China's new energy vehicle market, industry and technology have developed at an astonishing speed and scale in recent years. Shi Jianhua, deputy secretary general of China Association of Automobile Manufacturers, said during the 2022 World Manufacturing Congress that the development of new energy vehicles in China has achieved 'three breakthroughs' in technology, products and market: in terms of technology, at present, China's new energy vehicles have established a complete industrial system with upstream and downstream links, breaking through key technologies such as batteries, motors and electronic control, among which the power battery technology is in a leading position; In terms of products, the cruising range of new energy vehicles has been greatly improved, and the new energy passenger cars have basically achieved full coverage of the car networking function. L2-class driving assistance systems account for 38% of new energy vehicles, and some head enterprises have already launched mass production new cars equipped with V2X technology; In terms of market, China's new energy vehicles have achieved rapid development, ranking first in the world in production and sales for seven consecutive years. At present, the number of new energy vehicles in China has reached 10.01 million.

More importantly, with the help of the new energy vehicle track, many independent brands stand out and their market share continues to grow. According to the latest data from the National Passenger Car Market Information Association, 850,000 self-owned brands sold in August, a year-on-year increase of 41%; Domestic retail share of independent brands was 45.8%, up by 3.8% year-on-year. It is not difficult to find that after the policy supports the demand of new energy vehicles, automobile enterprises have also accelerated the speed of research and development and launch of new technologies and new models. It is revealed that in 2023, mainstream first-line car companies such as BYD, Geely, Chang 'an and Great Wall, as well as new force car companies such as Weilai, Ideality, Tucki, Nezha and Lingtou will all usher in a new round of product year, and most of them will be concentrated in the mid-to high-end new energy car market of more than 200,000 yuan.

The extension of exemption of vehicle purchase tax for new energy vehicles is to continuously tap the consumption potential of new energy vehicles for the market, and it is a clear direction of industrial structure adjustment for car companies, which not only makes new energy car companies focus more on innovation and research, but also makes traditional car companies pay attention to the transformation and upgrading of product structure. From the policy to stimulate the consumption of new energy vehicles, to the expansion of the new energy vehicle market, and then to the introduction of more new energy vehicle products by car companies, so as to continue to stimulate consumers to buy ... The closed loop that has been formed in this way is the positive cycle of the new energy vehicle market, which will accelerate the transition of China's automobile industry. In this giant transition process, it is the strong competitiveness of the automobile industry that will be born.

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