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How about mini-bus for sale to the countryside and trade-in?

On December 10, at a regular press conference held by the Ministry of Commerce.  Gao Feng, the spokesperson of the Ministry of Commerce, said that in order to expand car consumption, a new round of car trips to the countryside and trade-in activities will be launched, including mini-bus for sale.

Mini-bus for sale

In terms of promoting commodity consumption, efforts for promoting the expansion of consumption of key commodities.

Firstly, encourage relevant regions to optimize automobile purchase restrictions. Such as carry out a new round of automobile sales to the countryside and trade-in for new ones. Implement a comprehensive cancellation of second-hand vehicle restrictions and improve the recycling system for scrapped automobiles; actively develop automobiles, including mini-bus for sale maintenance, repair, insurance, leasing; and other automotive aftermarkets unblock the circulation of new cars, used cars, and scrapped cars.

Secondly, places, where conditions permit, are encouraged to subsidize the elimination of old home appliances and furniture and purchase green smart home appliances, and environmentally friendly furniture. 

Thirdly, encourage the development of a new model of “Internet + recycling of waste materials”. To promote the upgrading of home appliances and furniture.

In order to get rid of the impact of the epidemic on the economy, my country has repeatedly introduced measures to boost consumption.

On November 26, the Ministry of Commerce held an on-site meeting to promote the consumption upgrade action plan, which emphasized the need to accelerate the release of the consumption potential of goods and services, stabilize and expand the consumption of automobiles and boost consumption of home appliances and furniture. Consumption of imported goods, promotion of catering consumption, and innovative consumption promotion activities.

Why is the expansion of automobile consumption an important measure to stimulate consumption growth?

Pan Helin, is the executive dean and professor of the Institute of Digital Economy of Zhongnan University of Economics and Law. He said in an interview with a reporter from Beijing Business Daily that this is because of automobile consumption. Also accounts for a large proportion of the total retail sales of consumer goods. “The automobile industry chain accounts for a very large proportion of the entire consumption. This is why we often use cars as an entrance to stimulate consumption.”

The automobile is an important consumer product related to the national economy and people’s livelihood. Automobile consumption, including mini-bus for sale, accounts for about 10% of the total retail sales of consumer goods. In 2019, the total retail sales of consumer goods in my country was about 41 trillion yuan, and automobiles, including mini-bus for sale, accounting for nearly 4 trillion yuan.

At present, my country’s automobile production and sales, including mini-bus for sale, have shown a recovery trend. In October, the total retail sales of consumer goods increased by 4.3% year-on-year.  And the growth rate was 1 percentage point higher than the previous month, achieving positive growth for three consecutive months.  Among them, automobile consumption, including mini-bus for sale, continued to rebound, and retail sales increased by 12% year-on-year, double-digit growth for 4 consecutive months.

Sales growth

According to data from the China Association of Automobile Manufacturers, in October, the production and sales of automobiles were growing. Including mini-bus for sale, there were 2.552 million and 2.573 million. Respectively, up 0.9% and 0.1% month-on-month, and 11% and 12.5% year-on-year. As of November, automobile production and sales, including mini-bus for sale, have shown growth for 7 consecutive months. The sales growth has remained above 10% for 6 consecutive months.

In Pan Helin’s view, there is little room for growth in automobile consumption in first and second-tier cities. “At present, the first- and second-tier cities are subject to various urban diseases. Such as traffic congestion. These cities have relatively high car ownership, so the entire growth space of car consumption has limitations. In the vast third- and fourth-tier cities and in the countryside, the consumption power has increased. And you can buy cars worth tens of thousands or tens of thousands of dollars. Pan Helin said, “At the same time, we actually have a lot of used cars, and we have basically entered the inventory stage now. Therefore, to expand automobile consumption, including mini-bus for sale, we must start from the perspective of trade-in.”

A series of strategic plan

In November of this year, the state made a series of the strategic plan. Such as for boosting bulk consumption, key consumption, and promoting the release of rural consumption potential. In order to promote consumption in the automobile market, a new round policy of car going to the countryside and trade-in was started.

In the new round of cars going to the countryside and trade-in, including mini-bus for sale, areas, where conditions permit, are encouraged to purchase trucks of 3.5 tons or less and passenger cars with displacements of 1.6 liters or less for rural residents.  And eliminate national III and below for residents emission standard cars. Also purchase new cars, including mini-bus for sale, are given subsidies.  Strengthen the construction of parking lots, charging piles, and other facilities.

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