According to the recently media report, the Measures for Automobile Replacement, issued by Ministry of Commerce in July, will be adjusted substantially due to the undesired effect. As specified by the Measures, most subsidies for auto replacement will be greatly increased. It is report that the revised Measures will be launched at the next month and implemented by the end of this year. So, how many subsidies will be enough for stimulating the auto replacement? In order to learn about the consumers’ opinions, the on-line survey, themed as “What is the Best Way to Subsidize the Auto Replacement”, is jointly carried out by Sina’s Auto Channel and Sinotrust. So far, 324 copies of effective questionnaires have been collected.
90% interviewees have the auto replacement plan. So, the “Auto Replacement Policy” will be well accepted
The statistics show that 95.4% of the interviewees have their own cars, among which the proportion of compact car and that of small-sized car are highest, accounting for 27.2% and 21.9% respectively, and then are the medium-sized car and mini car, accounting for 16.7% and 16.4% respectively. Also, the interviewees with minibus account for nearly 10% among all the interviewees.
As per the survey on the “Consumer’s Recently Auto Replacement Plan”, nearly 90% interviewees expect to replace their cars; 30.8% interviewees hope to replace their cars within six months; 33.8% interviewees hope to replace their cars within a year; also, 25.2% interviewees expect to replace their cars within two years, while the interviewees who have replaced their cars only account for 2.3%.
When the consumers replace the car, they will surly consider the disposal of previous cars. As shown by Sinotrust’s survey, the “Measures for Auto Replacement”, currently launched by the state, is gradually recognized by more and more consumers besides the traditional disposal of old cars through “selling to the secondhand car broker” and “auto replacement via 4S shops”. Also, the “Measures for Auto Replacement” is now the first choice of interviewees here to dispose their old cars.
The auto replacement policies from abroad are quite different as compared with those in China; insufficient subsidies frustrate the consumers’ enthusiasm for auto replacement at home
For the other interviewees who do not choose the “Auto Replacement”, they commonly think the subsidies from the Measures for Automobile Replacement are insufficient
The data from the secondhand car market show that currently, the deal price for secondhand car is much higher than the subsidies for car disposal and subsidies from the “Auto Replacement”. Therefore, it is difficult to implement the “Auto Replacement” for the cars, particularly the private cars. As taking this factor into account, the car owners tend to sell their old cars. Such way of car disposal is better than like-for-like replacement.
Actually, since the global financial crisis occurred at the end of last year, many western countries have launched the favorable policies for car replacement and buying the energy-saving cars. Such policies are well promoted and achieve good results.
However, the data from relevant departments in China show that since the implementation of “Measures for Automobile Replacement”, the auto replacement is not well carried out as expected. Meanwhile, the Measures fail to obviously stimulate the sales of new cars as well as achieve the purpose for phasing out the old cars with heavy pollution.
The survey shows that 80% interviewees think “insufficient subsidies” in China cause the obvious gap between the Measures in China and those from abroad.
The consumers expect the subsidies could be increased to at least RMB 10,000
So, what do the consumers expect if the measures for auto replacement are substantially adjusted? The survey shows that “Increase the Subsidies” are commonly wished by 77.0% interviewees. Furthermore, some interviewees hope that as the subsidies for auto replacement are increased, certain funds could be also adopted to directly subsidize the new cars or environmental-friendly cars, which means other favorable policies could be enjoyed at the same time when the Measures for Car Replacement are continuously implemented.
On November 4, the Proposal for Adjustment of Auto Replacement Measures was submitted by the National Passenger Cars Association. As suggested by this proposal, the price for purchasing the old cars should be substantially improved and the enterprises should be encouraged to participate in the subsidizing, so as to change the situations as loss of old car resources and abnormal procedures for old car disposal.
Also, as pointed out by this proposal, tax on buying vehicles should be fully remitted if the small-displacement vehicles under 1.6 L were bought via old car replacement. The policies from Japan and USA for “Subsidizing the Auto Replacement” could be adopted for reference, so as to launch the new measures for guiding the consumers to buy the more environment-friendly cars.
Then, what subsidies will be accepted by the consumers for auto replacement? Due to the consumers’ psychology of “maximized benefits”, over RMB 17001 is chosen by many interviewees. So, if removing the above factor of “maximized benefits”, we find out RMB 9001-12000 is deemed by most interviewees as the “appropriate subsidies“, which are particularly welcomed by the consumers who buy the mini-cars.
In addition, the industry insiders think the current measures for auto replacement should be in accordance with the place. The requirements for car replacement are different at each region in terms of model, service life and urban management. Thus, the subsidies from local government should be also subject to the specific conditions.
Conclusion
According to the above survey, we find out the Measures for Auto Replacement are further accepted in a substantial way by more and more consumers who want to replace their cars, but the low subsidies are still the major containment on auto replacement. Thus, the increase of subsidies is not only suggested by the specialists, but demanded by the consumers.
Author: Zheng Xueqin, Editor, Motorlink (www.motorlink.cn), Sinotrust
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