context: The car market seems hardest hit by slowing economic growth and China-US trade tension. As part of economic stimulus, Ning Jizhe 宁吉喆 NDRC vice director already suggested the state would prop up car sales. As expected, the measures benefit NEVs and high-quality growth.
National Development and Reform Commission (NDRC) and nine other agencies issued ‘Implementation plan on improving the internal market (2019 version): optimising supply, boosting consumption, stabilising growth’. At the press conference, Liu Yunan 刘宇南 NDRC General Office inspector said the plan addresses
- automobile consumption, a ‘major chunk’ of commodity consumption
- replacement and scrappage programs, especially in rural areas
- optimise new energy vehicles (NEV) subsidies
- restrict urban access of large trucks
- allow second-hand vehicles to be resold nationwide
- reduce VAT for second-hand products to two percent
- improve licence plate restrictions
- urban consumption
- regenerate old neighbourhoods by installing elevators
- support villagers moving to the city
- rent reductions for nurseries and kindergartens
- support elderly care centres
- rural consumption
- promote rural e-commerce and tourism, especially in three districts and three prefectures with support for regional products, standards for services, e-commerce platform collaboration and quality tracking
- consumption of new and high-tech products
- support green products
- issue 5G permits
- allow local governments to subsidise ultra high definition displays, television boxes, virtual reality
- improve VAT reimbursement offices at national borders
The plan also calls for improving product certification and quality systems and building related infrastructure, including roads, parking places and NEV charging facilities, said Liu.
More subsidies will go to advanced NEVs, says Cui Dongshu 崔东树 China Passenger Car Association secretary general. The plan also introduces a differentiated approach to new energy trucks, and boosts rural consumption with ‘suitable subsidies’ for trucks under 3.5 tonnes and passenger cars with under 1.6 litre engines. Cui recommends addressing the housing market, as it makes up 40 percent of household debt.