It will take time to change the policy

According to the statistics of China National Automobile Association, since the implementation of the “car to the countryside” policy in March, the sales volume of light trucks in the country totaled 162,800 units, down by 0.7% year-on-year, while micro-vehicles increased by 39.5% year-on-year to 165,900 units. In April, mini-vehicle sales further increased to 171,600 units, an increase of 70.66% year-on-year, while sales of light trucks were only 146,700 units. Although slightly higher than the same period of last year, the sales volume of micro-vehicles decreased and the gap between micro-vehicle sales further widened.

For the "car to the countryside" process, light trucks and micro-vehicles, the difference between heaven and earth, many light truck manufacturers can be seen in the eyes, eager to heart. According to sources, not long ago, when more than 70 automobile production enterprises in the countryside went to Beijing to sign the “Sale Service Commitment”, the representatives of the light truck companies attended the meeting and called on the relevant government agencies to cancel the light card redemption request. .

Industry sources told reporters that the original intention of light truck redemption is good, to promote the upgrading of agricultural vehicles, eliminate backward production capacity, improve vehicle safety, environmental protection and comfort, but after the implementation of the implementation is counterproductive. It is understood that, as a supplement to and adjustments to the “automobile to the countryside” policy, the cancellation of light truck redemption has been referred to the relevant agenda by the relevant departments, and the formal introduction is just around the corner.

However, it has been more than three months since March until now, watching the growing growth of the mini-vehicle market, watching other people make money, light truck manufacturers can be described as anxious. In addition, this “just around the corner” is still unknown. Who knows how many days after the unknown will be introduced?

As a result, some light truck companies are making self-adjustments as soon as possible, increase marketing efforts, and actively participate in the competition with micro-vehicles. It is understood that in order to catch the “fast car to the countryside”, some light truck companies have received financial support from local governments in addition to the enterprises’ own formulation and introduction of various preferential measures.

It is reported that in order to promote the sales of light trucks, some provinces have issued special rules for the implementation of "automobiles to the countryside" in this province, and have set up special funds for this purpose. For example, the Liaoning provincial government has paid 30 million yuan to subsidize farmers for 10,000 Jinbei sea lions, and Jilin province has invested 100 million yuan to subsidize the purchase of products by the farmers; Jiangxi has invested nearly 1 billion yuan to implement Agricultural machinery went to the countryside, and Hunan, Anhui, and Guangxi also invested a lot of money.

Wang Du, deputy secretary-general of the China Automobile Dealers Association, said that the “5 million yuan” subsidy for “automobiles going to the countryside” will be jointly financed by the central government and provincial finances, but it is certain that the funds for the above-mentioned provincial subsidies do not use central government funding. It should be local finances.

It is worth noting that, unlike the relevant national policies, the subsidy incentives of local governments are linked to specific car dealers. According to the regulations of the automobile-to-country activities implemented in Jilin Province, farmers purchase trucks under 5 tons (including 5 tons) produced by FAW Group in Jilin Province. Each vehicle will be given a 15% government subsidy, and the maximum subsidy for bicycles is 30,000 yuan. The time limit for subsidies ends from February 20, 2009 until the end of November. After the farmers have applied for approval at the agricultural machinery station in their township, they can purchase the car at the designated supplier's purchase price. It is reported that this is a preferential policy implemented by Jilin Province to encourage farmers to purchase cars. The provincial government will invest 100 million yuan to subsidize the purchase of related products by the FAW Group. This was jointly launched by the Jilin Provincial Government and FAW Group. In addition, Hunan Province piloted the “car to the countryside” campaign in Changsha County. Local farmers purchased cars. In addition to manufacturers’ preferences for profit, the government also provided subsidies and loan interest subsidies, but the products were limited to Foton Motors, which had production plants in Hunan Province. For every peasant consumer who purchases Foton Light Truck, the Changsha County Government grants a subsidy of 5,000 yuan; the peasant users who need the loan are provided with a car loan by the Changsha County Rural Credit Cooperative. The loan interest is paid by the Hunan Provincial Government and the loan period is 1 to 2 years. . This is a cooperation between Hunan Provincial Government and Foton Motor.

Judging from the current situation held by reporters, the policies jointly put forward by light-cargo enterprises and local governments have a superposition effect with the country’s “cars going to the countryside” policy. Local governments follow the national “rescue” policy to subsidize buyers. For the light-card market, It's a big plus.
However, there are also market participants who believe that the practice of subsidizing local light truck companies by local governments is conducive to the fair start of market competition and is debatable. The relevant departments need to supervise the implementation of local subsidies provided by local governments. Once there are places that issue relevant protection policies that interfere with fair competition and affect farmers’ freedom of choice, they should be corrected promptly.
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