The car purchase restriction policy will not be lifted in the short term
2023-10-02
Due to the signs of fatigue in the Chinese automotive market since the beginning of the year, both car companies and industry associations have turned their attention to the restrictive car consumption policy issued by Beijing at the end of last year. Some media reported last Friday that the National Development and Reform Commission and other departments collectively submitted a petition to adjust or cancel policies restricting automobile consumption. Recently, officials from the National Development and Reform Commission replied that there was no such matter, and relevant personnel from the China Association of Automobile Manufacturers also denied participating in the application. Regardless of the truth or falsehood of this news, there is no doubt that many car companies are fanning the flames behind it. However, will the car purchase restriction policy really be lifted in the short term? I don't think so, for four reasons:
Firstly, policy-making is a very serious matter. The purchase restriction policy has only been implemented for half a year and its effect has not yet been apparent. If it is cancelled at this time, it will not only show the government's carelessness in formulating policies, but also make the public feel confused about the direction of national policies, thereby causing consumers and the automotive industry to misunderstand the government. Due to the car restrictions in big cities, many car companies have started to focus on the third and fourth tier markets. One of the ways for car companies to cope is to vigorously develop joint venture and independent brands. Once the car restrictions are lifted, car companies will have to re plan. When the government puts the car restrictions on the agenda again due to various pressures in a few months, car companies will only feel at a loss, which will affect the relationship between enterprises and the government, and is not conducive to the overall continuous development of the industry.
Secondly, the controversial car restriction order issued by the Beijing Municipal Government was a decision made under the dual pressure of traffic and urban environment. Excluding purchase restrictions, it seems that mega cities such as Beijing are unable to produce more effective solutions to traffic congestion in the short term. The measures of increasing car usage fees, including raising parking fees and peak hour fees on key road sections, have not been immediately effective. In order to promote the harmonious development of the entire city, the government cannot cancel the purchase restrictions that have already been heavily implemented.
Thirdly, the decline in the automobile market has had an impact on the national economy and industrial chain, and it seems that it is not yet necessary to solve the problem. The explosive growth in the past two years was an abnormal growth stimulated by several major national policies, which is not the normal state of the Chinese automobile market. Automobile companies should learn to calm down from the joy of high-speed growth and think about the path of sustainable development in the future.
Fourthly, the overall automobile market was sluggish in the first half of the year due to various factors, including the Japanese earthquake, high oil prices, and inflation. Therefore, it is too far fetched to attribute the temporary decline in the domestic automobile market solely to the car purchase restrictions in Beijing.
Therefore, the author believes that it is impossible to cancel the purchase restriction order in the short term, and cities such as Shanghai, Guangzhou, and Shenzhen are also considering following up due to environmental and social considerations. Therefore, car companies should not rely on policy incentives, but rather walk their own path steadily and find a solution as soon as possible.
Firstly, policy-making is a very serious matter. The purchase restriction policy has only been implemented for half a year and its effect has not yet been apparent. If it is cancelled at this time, it will not only show the government's carelessness in formulating policies, but also make the public feel confused about the direction of national policies, thereby causing consumers and the automotive industry to misunderstand the government. Due to the car restrictions in big cities, many car companies have started to focus on the third and fourth tier markets. One of the ways for car companies to cope is to vigorously develop joint venture and independent brands. Once the car restrictions are lifted, car companies will have to re plan. When the government puts the car restrictions on the agenda again due to various pressures in a few months, car companies will only feel at a loss, which will affect the relationship between enterprises and the government, and is not conducive to the overall continuous development of the industry.
Secondly, the controversial car restriction order issued by the Beijing Municipal Government was a decision made under the dual pressure of traffic and urban environment. Excluding purchase restrictions, it seems that mega cities such as Beijing are unable to produce more effective solutions to traffic congestion in the short term. The measures of increasing car usage fees, including raising parking fees and peak hour fees on key road sections, have not been immediately effective. In order to promote the harmonious development of the entire city, the government cannot cancel the purchase restrictions that have already been heavily implemented.
Thirdly, the decline in the automobile market has had an impact on the national economy and industrial chain, and it seems that it is not yet necessary to solve the problem. The explosive growth in the past two years was an abnormal growth stimulated by several major national policies, which is not the normal state of the Chinese automobile market. Automobile companies should learn to calm down from the joy of high-speed growth and think about the path of sustainable development in the future.
Fourthly, the overall automobile market was sluggish in the first half of the year due to various factors, including the Japanese earthquake, high oil prices, and inflation. Therefore, it is too far fetched to attribute the temporary decline in the domestic automobile market solely to the car purchase restrictions in Beijing.
Therefore, the author believes that it is impossible to cancel the purchase restriction order in the short term, and cities such as Shanghai, Guangzhou, and Shenzhen are also considering following up due to environmental and social considerations. Therefore, car companies should not rely on policy incentives, but rather walk their own path steadily and find a solution as soon as possible.
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