The Ministry of Commerce, the National Development and Reform Commission, the Ministry of Industry and Information Technology and other ministries and commissions issued notices on several measures to invigorate automobile circulation and expand automobile consumption. Promote the demand for new energy vehicles by starting from three perspectives: breaking restrictions, promoting demand, and accelerating supporting facilities: 1) Breaking down local protections, breaking down the setting of local new energy vehicle model registration catalogs, and setting unreasonable parameters for product sales and consumption subsidies Restrictions on behaviors such as indicators; 2) Deeply explore demand potential: study the extension of the exemption of purchase tax and further promote the activities of new energy vehicles in the countryside; 3) Support the construction of charging facilities such as communities, parking lots, and service areas, and improve supporting services , to further enhance the experience of using new energy vehicles, and guide charging pile operating companies to appropriately reduce charging service fees.
Oriental Fund Equity Research Department believes that the measures issued by multiple ministries and commissions to expand automobile consumption further demonstrate my country’s current high policy support for automobiles, especially the new energy automobile industry. Stimulated by multiple factors such as the release of consumer demand affected by the epidemic in April and May, the support of the national purchase tax reduction and exemption policy of RMB 60 billion, the support of passenger car subsidy policies in many places, and the resumption of production and supply after the epidemic, passenger car sales have increased since the end of April. Sales of automobiles and electric vehicles continue to recover, and the relative and absolute gains of the automobile and electric vehicle sectors are obvious. The continued performance of subsequent sectors depends on whether the strong support from the policy side can continue to realize the growth of terminal sales. With the smooth progress of the resumption of work and production on the supply side and the gradual alleviation of core shortages, the effect of demand-side policy support continues to be reflected. We believe that the fundamental reversal in the automobile and electric vehicle sectors is expected to be followed by the sentiment reversal, and we pay attention to the sustainability of the market.
(The market is risky, so investment needs to be cautious.)
