Recently, with the strengthening of national-level subsidies for the scrapping and updating of vehicles, the gradual implementation of local replacement and renewal policies, and the launch of new products by car manufacturers in the fall, the passenger car market has gradually warmed up, especially with the continuous strengthening of the terminal retail market, and the "Golden September" effect continues to be evident.

According to data from the China Association of Automobile Manufacturers, in September, the production and sales of vehicles were completed at 2.796 million and 2.809 million respectively, with a month-on-month increase of 12.2% and 14.5% respectively. Among them, the sales volume of new energy vehicles accounted for 45.8% of the total sales volume of new vehicles, and the monthly production and sales set a historical record. Localities have actively introduced detailed rules for the scrapping and renewal of vehicles in combination with local actual conditions, and the stimulating effect is obvious. The application volume of vehicle scrapping and renewal subsidies has increased rapidly, effectively driving the increase in vehicle sales.

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Continuously releasing good news

"With the superimposed subsidies and various preferential policies for scrapping and renewing vehicles at all levels, the new car I bought this time was subsidized by 15,000 yuan." Zhang Xuefei, a citizen of Ordos City in Inner Mongolia Autonomous Region, said that this is a warm-hearted livelihood project.

Guo Hongtu, the head of the Market Operation and Consumer Promotion Section of the Business Bureau of Hohhot City, said that the policy of scrapping and renewing vehicles has a relatively obvious role in promoting the sales of new energy vehicles in the local area. From January to August this year, the sales volume of new energy vehicles in Hohhot City reached 3.38 billion yuan, a year-on-year increase of 35.7%. Among them, the sales volume of new energy vehicles in August reached 653 million yuan, a year-on-year increase of 82.8%.

The reporter learned from the Department of Finance of the Inner Mongolia Autonomous Region that since June this year, Inner Mongolia has issued a total of 452 million yuan in subsidies for scrapping and renewing vehicles, including 238 million yuan in central subsidies and 214 million yuan in regional subsidies, supporting the work of scrapping and renewing vehicles throughout the region.

The person in charge of the relevant office of the Department of Commerce of the Inner Mongolia Autonomous Region introduced that since the implementation of the policy of scrapping and renewing consumer vehicles, the policy effect has accelerated, and consumer enthusiasm for scrapping and renewing vehicles has surged. Up to now, the number of applications for vehicle scrapping and renewal subsidies in the entire region of Inner Mongolia is 34,428, driving about 4.4 billion yuan in vehicle consumption, which has played a positive role in releasing the potential of vehicle consumption.

With the issuance of the "Detailed Rules for the Implementation of Vehicle Scrapping and Renewal in the Inner Mongolia Autonomous Region", the next step is that the Department of Commerce of the Inner Mongolia Autonomous Region will work with relevant departments to guide the implementation of subsidy policies in various leagues and cities, continue to increase policy publicity, and allow the "real gold and silver" policy to benefit more consumers.

Henan Province also issued the "Henan Province's Plan to Strengthen Support for Large-scale Equipment Renewal and Consumer Goods Scrapping and Renewal" in September, allocating 4 billion yuan to support various regions in carrying out vehicle scrapping and renewal, vehicle replacement and renewal, and the scrapping and renewal of home appliances and electric bicycles.

Li Ying, a second-level researcher at the Zhengzhou City Business Bureau, said that in terms of vehicle replacement and renewal, Zhengzhou will follow the unified standards of the entire province of Henan, and provide subsidies according to the car purchase price in batches for individual consumers who transfer (excluding change registration and scrapping) non-commercial passenger cars under their own name from July 25 to December 31, and purchase and register non-commercial passenger car new cars in the province. Among them, new energy vehicles priced between 60,000 yuan (inclusive) and 100,000 yuan (exclusive) are subsidized by 10,000 yuan, and fuel vehicles are subsidized by 7,000 yuan; new energy vehicles priced between 100,000 yuan (inclusive) and 200,000 yuan (exclusive) are subsidized by 14,000 yuan, and fuel vehicles are subsidized by 10,000 yuan; new energy vehicles priced at 200,000 yuan (inclusive) and above are subsidized by 16,000 yuan, and fuel vehicles are subsidized by 13,000 yuan.Strengthening a Convenient Environment

Just after the National Day holiday, the Weijia Automobile Trade Park on Shangdu Road in Zhengdong New District, Zhengzhou City, is bustling with activity, as consumers continuously visit to view, purchase, or pick up cars. Zhengzhou resident Li Shuang, who just picked up his new car, said that the original price of the new energy vehicle he bought was 69,800 yuan. After enjoying a government replacement subsidy of 10,000 yuan and promotional activities at the 4S store, the price was very favorable. Among them, the government replacement subsidy of 10,000 yuan has been applied for by himself in the designated system, and it can be issued and collected after passing the review.

Lv Jinlong, a first-level researcher at the Zhengzhou Municipal Finance Bureau, introduced that currently, Henan Province has allocated a total of 8.6 billion yuan for consumer goods replacement subsidies, with Zhengzhou City receiving 2.2 billion yuan (including the Aviation Port Area), accounting for 25.6%. On September 14, the Henan Provincial Finance allocated the fund indicators to Zhengzhou City and advanced the first batch of subsidy funds of 1 billion yuan.

Zhang Zhancang, a researcher at the Henan Provincial Party Committee's consulting group and former president of the Henan Academy of Social Sciences, said that unlike traditional support methods such as investment subsidies, this time the funds are directly arranged for localities, giving localities greater autonomy, which is conducive to consumers obtaining these "real gold and silver" discounts more quickly and conveniently. It can better promote the growth of the consumer market and inject new momentum into economic development.

The reporter learned from the Department of Commerce of the Inner Mongolia Autonomous Region that this year, Inner Mongolia has fully implemented policies related to the replacement of consumer goods with old ones, strengthening policy coordination, increasing the amount of fund subsidies, and strengthening publicity and guidance. It guides the league and city to optimize the review process for car scrapping and renewal, shorten the time for subsidy issuance, and amplify the policy effect of car replacement with old ones through government subsidies, corporate concessions, and financial institutions' assistance.

At the same time, by holding second-hand car live broadcast festivals, new energy vehicle exhibitions, and other sales promotion activities, as well as issuing car consumption coupons and car subsidies, the potential for car consumption is further released. Continuously improve the level of car consumption services, support motor vehicle scrapping and recycling dismantling enterprises to provide one-stop services such as door-to-door collection, scrapping, and cancellation, and encourage car 4S stores to provide convenient services such as loan, tax payment, insurance, and license plate handling, to enhance the consumer car purchase experience.

Shaanxi also vigorously promotes car replacement activities. The Shaanxi Provincial Department of Industry and Information Technology recently carried out new energy vehicle rural activities and replacement activities, selecting new energy vehicle models suitable for different markets, with good reputation, and reliable quality, to carry out product sales, test rides, and other activities. At locations with relatively concentrated personnel, such as schools and banks, hold special lectures on the development trend of new energy vehicles, policy interpretation, and other topics according to demand, and carry out online and offline special promotional activities for new energy vehicle policies, purchase, use, and maintenance. At the same time, encourage enterprises participating in the event to introduce various preferential concessions and carry out on-site promotional activities, encourage car companies to hold live broadcasts or online car purchase activities, and attract traffic by combining interactive lottery draws, limited-time flash sales, and other methods, allowing more people to experience new energy vehicles. This activity will last until the end of 2024.

According to statistics, in the first seven months of this year, the car production in Shaanxi Province was about 882,700 vehicles. Among them, the production of new energy vehicles was about 593,000 vehicles, ranking third in the country, with a year-on-year increase of 15.1%.

Smooth Replacement Chain

Recently, the Department of Commerce of Shaanxi Province and other 10 departments issued the "Shaanxi Province's Plan to Strengthen Support for Consumer Goods Replacement with Old Ones", increasing the amount of subsidies and promoting the work of replacement with old ones. Among them, the "standard for car scrapping and renewal subsidies" and the "standard for car replacement and renewal subsidies" were clarified.Xi'an Municipal Bureau of Commerce's Market System Construction Department Director, Dai Gaole, introduced that before January 10, 2025, individual consumers applying for scrapping and updating subsidies can submit relevant materials through the National Automotive Circulation Information Management System website or the "Auto Trade-in" mini-program. Individual consumers applying for replacement and updating subsidies can submit relevant materials through the unified service platform of Shaanxi Province. After review, the subsidy funds will be directly transferred to the bank account provided by the applicant.

It is understood that there is no order for transferring old cars and purchasing new ones. On the Henan Province Auto Replacement and Updating Subsidy Declaration System, consumers can search for the "Henan Province Consumer Goods Trade-in Service Platform" mini-program on the Yunshanfu APP, log in to the car replacement subsidy area, and apply to the subsidy acceptance place (i.e., the county, city, or district noted on the "Motor Vehicle Sales Unified Invoice"). After review and approval, the subsidy funds will be directly transferred to the consumer's bank account. It should be reminded that the same new passenger car cannot apply for both car scrapping subsidies and replacement and updating subsidies at the same time. The transferred old passenger car should be registered in one's own name before July 25, 2024, based on the registration date indicated on the old car's "Motor Vehicle Registration Certificate."

In addition, in terms of car scrapping and updating, Zhengzhou, in accordance with the national unified standard, provides subsidies of 20,000 yuan and 15,000 yuan respectively for individual consumers who scrap fuel passenger cars with emission standards of National III and below, or new energy passenger cars registered before April 30, 2018, and purchase eligible new energy passenger cars or fuel passenger cars with a displacement of 2.0 liters and below between April 24 and December 31.

Shi Zhusheng, a deputy researcher at the Economic Research Institute of the Inner Mongolia Autonomous Region Social Sciences Academy, said that the car trade-in policy directly reduces the cost of car purchase by providing replacement subsidies, bringing real benefits to consumers. At the same time, it helps to accelerate the elimination of backward production capacity and promote the optimization and upgrading of the automotive industry structure. Shi Zhusheng suggested that the subsidy for replacing new energy vehicles could be appropriately increased to encourage consumers to purchase and use new energy vehicles, reducing carbon emissions. By policy guidance and standardized supervision, the recycling model of scrapped cars can be continuously optimized, the reuse rate of car dismantling can be improved, and the development of related industries can be promoted.

However, some industry insiders also reminded that considering the increased expectation of car purchase discounts by consumers may affect subsequent car sales, it is hoped that some long-term and sustainable measures to encourage car consumption can be introduced.