Monday 1 February 2016

Automakers support governance cheating up subsidies fall back just forced a new energy automobile market progress

Posted by doll on 07:43:00 with No comments
Subsidies for new energy vehicle decline every year, is the Ministry of finance, Ministry of science and technology, the Ministry of stated policy, national development and Reform Commission and other relevant departments, and over-reliance on subsidies for new energy vehicles in China, makes the Central fall back just ahead of the subsidy policy mechanisms.

On January 27, the a new energy automobile executives said in the China Business Journal reporter, as the direction for long-term development of new energy vehicles vehicle manufacturers, subsidy policy tightening, conducive to the steady development of the present market.

Central ministries issued the relevant instructions, most car companies of Central, a new energy policy expressing support. On one hand, subsidies fall back just a mechanism to speed up startup and can stimulate consumer purchases in advance new energy vehicles in the short term, on the subsidies squeeze is also conducive to the orderly development of new energy vehicle market, accelerating new energy automobile enterprise's survival of the fittest.

In fact, as early as 2014, before and after the four ministries had issued a circular on further improving notification of popularization of new energy vehicles, overall guidance for financial subsidies for new energy vehicle lines will be reduced year by year. Subsidies and now part of the new energy car chases, the overall market situation of cohabitation, that pays top academics, is undoubtedly the basic factors prompted the Central Government to adjust its policies.

Subsidy policy tightening

A few days ago, 2016 electric hundred Forum held in Beijing, China, attended this forum interested parties, have reached a consensus. Early in the development of new energy vehicles, central both to maintain the subsidy policy, promoting the development of new-energy auto industry. But at the same time, subsidies are only leverage the automakers should gradually reduce policy dependent on.



Earlier media reports, some domestic companies use data fraud in obtaining subsidies, become the focus of the Forum discussions. "Four ministries have jointly issued a notice also organized special examinations, cheat on verified completion rules dealt with according to law, inspection and processing of the results to the public. "Minister of finance Lou Jiwei said.

Treasury's latest policy change is that 2017-2018 new energy auto subsidy levels from 2016 20%, 2019-2020 40%, after 2020 subsidy policy exit. This also means that in the next few years, the State subsidies for new energy vehicles "gate" gradual tightening.

Treasury's idea is that early release policy is for the enterprise to form a reasonable expectation. And then also to strengthen financial supervision and crack down on swindlers and rent supplement. Lou Jiwei, fake lie to make up, not only on violations of the laws and regulations and financial discipline, also seriously damaged the market environment must establish dishonest corporate blacklist system, filling and rent-seeking behavior against swindlers.

In fact, the "Twelve-Five" period, the four ministries have been issued a number of policies and measures, including subsidies, tax incentives, government procurement, technical research and development, charging infrastructure innovation incentives, standards and regulations, institutional mechanisms, policy research and development, production, consumption, and other aspects of operation, strongly supports the new energy automobile industry in China.

"The consumption subsidy policies designed to foster in the primary market, practice has proved that this policy works. "Mr Lou said, but long-term implementation of consumer subsidies, companies likely to suffer from the Government's policy of" addiction ", lack of technological development and upgrading of power and pressure industries are prone to low levels of blind expansion, the formation of new overcapacity. Therefore need to adjust subsidies, establishing selection criteria and mechanism.

Adjustment of, on the one hand, to increase the subsidy threshold, highlighting support for enterprises, not up to the standards of corporate subsidies cannot be obtained to curb blind expansion and disorderly development of the industry on the other, subsidies fall back just standard, forcing enterprises to speed up market development.

Forced market transformation

The foregoing policies are national policies of "adjustment" of new energy vehicle market means.

Analysts believe that, gradually reduce subsidies for new energy vehicles, actually determine the subsidies for new energy vehicles to exit mechanism. Follow-up will continue a subsidy policy was just extended the subsidies for new energy vehicles "exit" buffer time, essentially subsidies for new energy vehicles will decrease to an ultimate abolition.

In fact, in previous national sustained policy support for new energy automobile industry, new energy vehicles in China has achieved fast development.

In the past four years, insufficient domestic new energy cars from vehicles shot up to 2015 more than 400,000 vehicles. In particular, in this case of the traditional auto industry as a whole, new energy automobile market to buck, showing explosive growth. According to authoritative statistics show that, in 2015, the surge in sales of new energy vehicles in China 4 times, new-energy auto production and sales volume of about 340,000 vehicles and 330,000 units, compared with 334% and 343% respectively.

Previously such as BYD, part new-energy auto production enterprises, some of its hybrids such as "Qin" below similar new energy vehicles more impact on the prices of the domestic market, because I hope that through the promotion of private demand in the regional market, forcing the regional government to give "Qin" and BYD more policy support.

But behind the sales blowout of new energy vehicles, some enterprises for short-term interests and even lied to fill. Meanwhile, long-term policy benefits, is not conducive to the overall development of new-energy auto industry. Subsidies fall back just mechanisms will accelerate new energy car technologies and capabilities in key areas such as cost.

New of policy of implementation, undoubtedly will pour forced market accelerated transformation: simple by Lee of car enterprises will change sets fill, and cheat fill of behavior; long-term development new energy car of car enterprises, will in products competitiveness upper and lower more of Kung Fu; specification market, on new energy car has highlight contribution of car enterprises and models, will has relative fair of treats; reduce Central and the place of subsidies funds pressure.

"Simply relying on subsidies to and not to the manufacturer responsibility, is the electric vehicle development quality and efficiency one of the reasons. "Academician Yang Yusheng also believes that policies to support promotion of core technologies and products.

According to its forecasts, new energy vehicles to achieve the 2020 goal of 5 million cars, "Thirteen-Five" Central Government subsidies of about 390 billion yuan during the period. "Now that some cities can't afford to subsidize the policies should accelerate the fall back just. "Yang Yusheng said. If calculating subsidies according to fall back just 25%, "Thirteen-Five" during the subsidies needed 177 billion yuan from the Central Government.

Some analysts after the supporting policy of new energy vehicles in contrast to developed countries, are also considered to fall back just mechanisms for financial subsidies, can regulate the market on the one hand, on the other hand can gradually reduce the interference of local protectionism for popularization of new energy vehicles, subsidies end exit is inevitable, should transition to support policy of tax cuts, no longer subsidized by the local government from a new tax on energy companies and to consumers.

"Before policy was originally developed by driving up the sales of new-energy cars, sell products as long as the are successful. "The auto industry of Tsinghua University, Dean of Zhao said. Change car mentality of short-term arbitrage is an important measure is to speed up the subsidies fall back just. Both promote scale process and transition to unsubsidized, how to find a balance, a test of policy makers are smart.
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