(資料圖)
BEIJING, June 29 (TMTPOST)— China’s auto association showed optimistic on sales in this month following the government’s new fiscal stimulus.
Source: Visual China
From June 1st to 26th, the wholesale volume of passenger cars rose 40% year-over-year (YoY) to 1.504 million units, increasing 49 percentage points from the YoY growth in the same period a month ago, and sales represented a 34% month-over-month (MoM) increase, according to China Passenger Car Association (CPCA).
CPCA said that overall performance in June would be promising as the retail sales seemed better than the industry’s forecast given authorities’ recent policies to spur economic growth. As the major auto makers saw rapid growth in wholesales deliveries in the month, the auto group expected sales of new energy vehicles (NEVs) including battery electric vehicles (BEVs), hybrid electric vehicles (HEVs) and other non-fossil fuel-powered vehicles, to nearly 500,000 units, which is likely to set a new monthly record.
CPCA attributed the strong momentum the auto market showed to recent economic stimulus including reduction of the purchase tax, as well as easing of Covid-19 restrictions.
The Ministry of Finance and the State Administration of Taxation announced in late May to cut the 10% purchase tax levied on certain passenger cars by half. The tax cut, effective from June 1 to December 31, 2022, can save RMB15,000 for any shopper who would buy a car under RMB300,000 ($45,000) and with 2.0-liter or smaller engines in the second half of the year. The tax incentives came in response to direction of a package of stimulus measures at an executive meeting of the State Council, including a phased reduction of RMB60 billion in the purchase tax for specified low-emission vehicles.
Last week, another executive meeting of the State Council proposed to boost supports for spending on the automobile. The meeting stressed to further unlock consumption potential in the auto market and estimated the stimulus would bring additional RMB200 billion of spending on vehicle and auto-related sectors.
The industry also expected more tax benefits from the government since Xin Guobin, vice minister of the Ministry of Industry and Information Technology (MIIT), earlier this month revealed that the authorities were considering extending a purchase tax exemption for NEVs.
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