In August, the auto market rebounded strongly and the "energy saving subsidy car" gradually became a force

For four months in a row, the double drop will keep the national auto market waiting for the arrival of spring, and the hot summer days have not completely ignited the enthusiasm of buyers. However, the production and sales figures for August seem to make people see the golden fruits of the upcoming harvest. According to the data, the country's vehicle sales volume for the month was 1,215,500 units, an increase of 15.09% from the previous period.

Auto market enters sales season ahead of schedule

On September 1, the China Automotive Research Center (hereinafter referred to as China Automobile Center) released the August domestic auto industry production and sales data. In August, the country’s auto production reached 1,204,200 units, a decrease of 2.74% compared with the previous period and an increase of 10.15% year-on-year. Sales volume reached 1,125,500 units, a year-on-year increase of 15.09% and a year-on-year increase of 55.72%. After experiencing a sales trough in July, the market rebounded strongly and entered the sales season ahead of schedule.

Zhao Hang, director of the China National Automobile Industry Center, said that in August, the output of autos was “lower and higher”, and the output of four natural weeks was 21.93 million units, 237,600 units, 307,400 units, and 329,400 units, which were increasing week by week. In the first half of the year, the company moderately controlled its output so as to effectively control its inventory. In the second half of the year, the company actively arranged production to prepare for the upcoming "Golden 9 Silver 10" automobile sales peak. According to the inventory cycle, the automobile inventory cycle in August was 57 days, which was a one-day decrease from July, and the monthly growth momentum was curbed. The inventory cycle of passenger cars was reduced from 60 days to 58 days, and the inventory of commercial vehicles was from 50 days increased to 51 days. From January to August, the cumulative production and sales volume of automobiles were 109.915 million and 945.69 million, respectively, a year-on-year increase of 35.45% and 31.53% respectively, and the overall development situation was good. Su Hui, former general manager of the Automotive Market Center of Beijing Asian Games Village and senior automotive marketing engineer, proposed in an interview with “Daily Economic News” that production and sales in August have become more balanced, which is a good phenomenon for the domestic auto market. This shows that automakers have adjusted their output, treated the market calmer, and no longer blindly expanded their production. Inventory levels have also curbed the trend of continued growth and prompted the healthy development of the entire market. However, the focus of attention in the second half of this year is the September and October which the industry calls "Golden 9 Silver 10". Whether it can complete the full-year expected production and sales target will still be verified by the market situation in the past two months.

Energy-saving vehicle subsidy policy "contribution"

In August, the state issued the second batch of energy-saving vehicle subsidies, and with the newly announced 132 models, the energy-saving subsidies covered 203 models, and the influence of subsidy policies gradually increased. The sales of 132 energy-saving auto products in August were 12.96 million vehicles, an increase of 32.04% from July, higher than the overall growth of the car. In August, sales of energy-saving automotive products accounted for 13.26% of passenger car sales, and accounted for 19.88% of passenger car sales of 1.6L and below. The introduction of energy-saving vehicle subsidy policies has not only stimulated the popularity of energy-saving models, but has also promoted price reductions for some other models, thus driving the overall development of the passenger car market.

With the successive release of energy-saving automotive product catalogs and the further enhancement of policy-driven actions, the proportion of energy-saving automotive products in passenger vehicles will also increase rapidly. Zhao Hang said that the energy subsidies policy has played a very good role in the rebound of the passenger car market in August; at the same time, the energy saving subsidy policy has effectively stimulated the consumer’s desire to purchase energy-saving and eco-friendly cars, prompting August’s 1.6. The passenger car market in L and below performed well. "The implementation of the energy-saving vehicle subsidy policy has not only accelerated the promotion of 132 energy-saving automotive products, but also stimulated the development of the 1.6L and below displacement passenger car market, which is conducive to China's structural adjustment of automotive products."

Since the implementation of the energy-saving subsidy policy, due to the distribution channels and other reasons, it has not achieved people's expected results, but it has also played a significant role in promoting the development of the auto market. As people's understanding of the subsidy policy increases, the effect becomes more obvious. Su Hui said that the effectiveness of the previous energy-saving subsidy policy was not effectively implemented because it was not implemented well enough for people to feel the actual benefits of subsidies. With the increase in people’s awareness and attention, the effect of the policy will gradually be reflected. More obvious, and the effect of this policy guidance is far greater than the impact of market demand on the auto market.