The Poster News APP:
How is the performance of the automobile market in the first half of this year? What measures will the MOFCOM take to spur automobile consumption? Thank you.
Zhu Xiaoliang:
Thank you for your concern about the automobile market. I will answer this question. The auto industry has always been a pillar industry in our national economy, serving as an engine to expand domestic demands and boost consumption with its long industrial chains and strong driving effects. In recent years, retail sales of automobiles have accounted for about one-tenth of the country's total sales. The CPC Central Committee and the State Council attach great significance to this sector. This year's government work report proposed to keep vehicle and other major consumption stable and to remove unreasonable restrictions in the second-hand car dealing market. The MOFCOM has been implementing these policies with great care and has worked with other departments to promote cross-province registration of second-hand cars, providing convenience for used car dealing. We have also promoted new energy vehicles in villages and handed out guidelines to the local commerce authorities on how to spur car consumption as part of the efforts to help them boost car consumption.
With various policies and measures in place, the automotive market has maintained a good momentum of steady growth. In the first half of the year, all major indicators exceeded levels from before the epidemic. First, sales of new vehicles achieved rapid growth, reaching nearly 12.9 million, a year-on-year increase of 25.6% and an increase of 4.4% compared to the same period in 2019. Second, sales of new energy vehicles increased substantially. In the first half of the year, 1.2 million vehicles were sold, a two-fold increase from the same period last year and close to the full-year sales of 2019. As I mentioned earlier, sales of new energy vehicles accounted for more than 9% of total vehicle sales. Approximately 256,000 new energy vehicles were sold in June, a new record for a single month. Third, the automotive aftermarket became more vibrant. The transaction volume of used cars exceeded 8.4 million, and the volume of recycled scrapped motor vehicles reached 1.31 million, an increase of 52.9% and 41.3% year-on-year, respectively. Meanwhile, the ratio of used car sales to new car sales has risen to 0.65:1.
Judging from the situation in the second half of the year, as China's economy continues to recover steadily, more policies and measures have been rolled out to promote consumption, which will provide strong support for the development of the automotive market. Meanwhile, factors such as a chip shortage and rising raw material prices will also have a certain impact on the automotive market. Based on comprehensive research and judgment, we believe that automotive sales for the whole year are expected to achieve positive growth, reversing the continuous decline for three consecutive years.
By the end of June this year, China's car ownership had reached 292 million, with an average of over 200 cars for every 1,000 people. In the next step, the Ministry of Commerce (MOFCOM) will thoroughly implement the decisions and deployments of the CPC Central Committee and the State Council. In accordance with the new situation and changes, the MOFCOM will work with relevant departments to boost automobile consumption and accelerate the construction of a new development paradigm featuring step-by-step consumption upgrading, efficient use of vehicles, and a green cycle.
First, we will accelerate the transformation of automobile management from emphasizing purchase to use, adjust and optimize automobile management policies, remove obstacles restricting automobile purchase and use, and release the potential of automobile consumption.
Second, we will deepen reforms to streamline administration and delegate power, improve services in automobile circulation and promote the introduction of related measures to stimulate the vitality and internal driving forces of the automobile market.
Third, we will promote the removal of unreasonable restrictions on used car transactions; further facilitate the standardized, branding, and large-scale development of the used car industry; and boost the market.
Fourth, we will improve the relevant management systems in the field of automobile circulation and speed up the revision of the Measures for the Administration of the Circulation of Secondhand Automobiles and Provisions on the Standards for Compulsory Retirement of Motor Vehicles to optimize the automobile consumption environment. Thank you.
