Zhonghongwang.com:
What are the plans and considerations of the Ministry of Commerce concerning the work to promote consumption this year? Besides, automobiles are one of the major contributors to consumption, and recently many regions have issued documents to boost the consumption of automobiles. What specific measures is the Ministry of Commerce taking to expand automobile consumption? Thank you.
Xu Xingfeng:
First, thank you for your attention to the work on consumption. It was put forward in the report to the 20th CPC National Congress that we should strengthen the fundamental role of consumption in driving economic growth. According to the Central Economic Work Conference, we should prioritize economic recovery and boost consumption. On Jan. 28, the executive meeting of the State Council came up with clear requirements for the work on consumption. The CPC Central Committee and the State Council have consistently attached great importance to consumption. The Ministry of Commerce will fully implement the decisions and plans of the CPC Central Committee and the State Council and maintain the momentum of consumption demonstrated during the Spring Festival. As mentioned earlier, sales of major retail and catering enterprises in China during the Spring Festival increased by 6.8% over the previous year. At present, we will enhance our work's overall coordination and planning by grounding our efforts in the first quarter and setting our sights for the whole year. Our work will mainly focus on three aspects.
First, we will continue to strengthen the guiding role of policies. We will supervise and inspect the implementation of the policies that have been issued to ensure that these policies are fully implemented. In addition, based on the new situation this year, we will focus on key areas such as automobiles and homes. We will launch a batch of new policies to give full play to the role of policies.
Second, we will plan major events to unleash market vitality. We have designated this year as the "2023 consumption promotion year," and with a focus on that, we will launch events to promote consumption nationwide. At a press conference on Jan. 19, we briefed you on our plan to organize events for consumption promotion nationwide. With the joint actions of provinces and cities, interactions among regions, and cooperation of relevant associations, we will support businesses and boost market dynamism to promote a series of consumption booms.
Third, we will keep optimizing platforms and carriers to make more progress. Just now, I have talked about cities and the countryside. In urban areas, we will advance the development of international consumption center cities, enhance the supporting role of smart shops and smart business districts, further develop 15-minute radius community life circles to bring more convenience for people, and increase quality supplies through multiple channels. Surely, county-level commerce development is still one of our priorities. Our work generally involves the above three aspects. As a result, we will maintain the momentum established during the Spring Festival and deliver a satisfactory performance regarding consumption work in 2023.
The second question was about automobiles. Automobiles, together with the other three consumer goods categories, account for about a quarter of the total retail sales of consumer goods. Automobile sales account for 10% of the total retail sales of consumer goods. If you buy an automobile, you will consume gasoline. Therefore, sales of automobiles and gasoline together represent nearly 15% of the total retail sales of consumer goods. Therefore, automobiles deserve to be considered the top of the four major consumer goods. In 2022, 26.864 million new vehicles were sold in China, up 2.1% year on year, ranking first in the world for 14 consecutive years. Sales of new energy vehicles were most impressive, with a nearly one-fold increase in domestic sales and a growth rate of 93.4%. Penetration rates of new-energy vehicles reached 25%, accomplishing the national plan's goal three years ahead of schedule. What was the goal of the national plan? According to the development plan for the new energy vehicle industry issued in 2020, by 2025, new energy vehicles would account for 20% of the total sales of new vehicles. However, the proportion has already reached 25.6%, fulfilling the goal three years ahead of schedule.
As the number one of the four major consumption sectors, automobile sales receive consistent policy support. After MOFCOM issued relevant policies together with 16 other departments, we released information to the public in time. There are three key points to keep in mind. The first point is our easing of restrictions on used car relocation nationwide on Aug. 1, 2022, ensuring the free circulation of all second-hand cars that meet National-V standards. The second point is that on Oct. 1, 2022, the process of reverse invoicing began. Usually, a seller issues an invoice to a buyer, but for used cars, enterprises, as second-hand car buyers, can now issue invoices to individual sellers. The third point is that new measures came into effect on Jan. 1, 2023, to change second-hand car agencies into second-hand car dealers. At the end of last year, more than 40,000 second-hand car dealers were registered, up by 180% on a yearly basis. This demonstrates that our policies have delivered notable results.
Next, we will continue to work with relevant departments to stabilize and expand auto sales. We will roll out multiple measures that cover the whole industrial chain and focus on clear priorities. Our efforts will be focused on the following four areas:
First, we will stabilize new car sales. The country has issued a document to promote the transformation from the administration of purchase to the administration of use, as a limitation on car purchases still exists in some regions. In addition, we will carry out various promotional events to stabilize new car sales growth.
Second, we will support the consumption of NEVs. Just now, I said that good progress was made in NEV sales, which conforms with our goal to achieve carbon peak and neutrality targets. We will guide local authorities to further improve the NEV user experience, from license plate registration to charging and traffic, so that people will have no worries. Imagine the unpleasant experience of taking a long-distance trip and failing to find any charging piles. Therefore, our next step is to improve NEV users' environment.
Third, we will continue to expand the circulation of second-hand cars. The construction and improvement of a nationwide second-hand car information inquiry platform will be accelerated, and the Measures for the Administration of the Circulation of Second-hand Automobiles will be revised. As a result, information about cars will be released more transparently. We aim to create a worry-free atmosphere for second-hand car consumers so that they feel like new car buyers. If the second-hand car you bought had been soaked, burned, or undergone major repairs, and you didn't know about it before purchasing, that would certainly affect your consumption experience. Therefore, we must adhere to our aim and dedicate ourselves to achieving it. Expanding the circulation of second-hand cars will invigorate our vast auto market, with the total number of cars reaching 319 million, and promote sequential consumption in this sector.
Fourth, we will streamline the process of scrapping and trading-in automobiles. As previously mentioned, vehicles have a lifespan. Both brand-new and used cars have limited lifespans and must eventually be scrapped and disassembled. We will revise regulations on scrapping motor vehicles and improve the recycling system. Furthermore, we will encourage regions with suitable conditions to exchange old cars for new ones, thus promoting the circular consumption of cars.
By creating policy incentives and implementing specific measures, we will maintain a sound environment for auto sales to leverage their role in driving consumption. Thank you.
