Policy for China auto industry's high-quality development to be released, MOFCOM

Shanghai (Gasgoo)- The targeted policies and measures to support a high-quality development of automobile industry will be issued in a proper timing, said Ministry of Commerce spokesman Gao Feng on September 5 at a regular press conference.

The stimulus policies will come after the Ministry conducts in-depth research activities and discussions over auto-related enterprises and solicit their opinions, according to Mr. Gao.

(Photo source: China's Ministry of Commerce)

Chinese government is striving to boost the auto consumption amid a prolonged market downturn. Local governments of regions where the automobile purchase restriction policy has been implemented shall be encouraged to gradually relax or cancel the specific measures of buying limitation based on respective actual situations, the State Council's General Office said on August 27 in the Guidelines on Accelerating the Circulation Development and Promoting Commercial Consumption.

Prior to the August document, Chinese authorities issued in June the Implementation Plan for Promoting the Upgrading of Key Consumer Goods and the Recycling of Resources which said local governments were strictly prohibited from imposing any limit on the consumption and use of NEVs.

Moreover, local governments were encouraged to offer support for the purchase of first NEVs of car-free families and provide NEV owners with parking fee relief in eligible places.

It is evident that the latest guideline has shifted its focus on “relax” from “prohibit” in the June paper. The wording adjustment signifies that the state's government never stops considering the most appropriate method for the country to revitalize the auto climate.

As of July, 2019, China's automobile market had been hit by the 13th-month-in-a-row downturn in sales and outputs. For the first seven months, a total of 14,132,000 vehicles were sold across this country with a year-on-year decline of 11.4%, according to the China Association of Automobile Manufacturers (CAAM).

Lifting consumers’ confidence should be prioritized by the government and automakers under continuous downward pressure. Some people think the industry need stimulus more aggressive, while mild policies cannot substantially strengthen shoppers' confidence.