Auto market inventory: A review of the new auto industry policy in 2004


The implementation of the new policy is undoubtedly a vane for the development of the automotive industry and guides the gradual development of the Chinese auto industry. Looking at the new or newly implemented policies related to the automobile industry this year, it is not difficult to see that this year not only the details of the relevant industrial policies have been introduced frequently, such as the “Administrative Measures for Automobile Brand Sales” and the “Administrative Measures for Circulation of Used Vehicles”, and many Policies related to the automotive industry have also been implemented this year, such as the "Automobile Loan Management Measures," "Defective Automobile Product Recall Management Regulations," and "Automobile Industry Development Policy." In summary, the new policy implemented or introduced this year continues to be the direction of encouraging automobile consumption and supporting the development of the automobile industry. It is also more rational, more flexible, and more practical. It regards humanity as the basic and the domestic automobile industry. Development has an important influence. 1. “Road Traffic Safety Law of the People's Republic of China” Implementation date: May 1st This year, on May 1st, the new road traffic safety law was formally implemented, marking that China’s road traffic undertaking has fully advanced to the era of the rule of law. The new traffic law begins with the implementation of minor traffic accidents that can be private, high-speed vehicles will be subject to heavy penalties, accidents escaping from driving forever, and vehicles without parking berths. The provisions of the new method of negation that negate “hit the crash” and the motor vehicle’s full responsibility for hitting people have also caused great discussion in the society. Beijing, Guangdong, and other places have added corresponding provisions in the implementation of the new diplomatic law. Where violations are committed and the driver of the motor vehicle has taken necessary measures, the motorized vehicle may not be responsible for the entire person. The principles of people-centeredness, fairness, and convenience are the most important features of this law: for example, pedestrians have absolute priority in crosswalks; compulsory insurance and social assistance funds, etc. At the same time, the law seeks to cultivate lawful traffic driving habits and violates traffic rules. The fines of drivers and pedestrians have been increased. If the pedestrian rushes to the red light, fines will be imposed, and 7 types of traffic offenders such as drunk driving will be detained, which will have a positive impact on the road traffic industry in China. 2. "Automobile Industry Development Policy" Implementation time: June 1 and 1994, "Auto Industry Industrial Policy" compared to the new policy, there are six major changes: First, canceled WTO rules and China's accession to the WTO The part that the commitment is against, such as the cancellation of policies requiring foreign trade balance, localization ratio, etc.; 2. Significant reduction of administrative examination and approval, emphasizing on guiding industries through laws and regulations and technical standards; 3. Proposing a brand strategy and encouraging independent development with independent intellectual property rights. The products provide a clear policy orientation for the auto industry's independent development. Fourthly, it promotes the domestic auto group to become bigger and stronger, and guides the merger and reorganization of existing companies. Fifth, it requires auto companies to pay attention to establishing a brand sales and service system to eliminate the worries of consumers; Sixth, guidance on the creation of better consumption and use of the environment. The new industrial policy is conducive to promoting the structural adjustment and reorganization of the automobile industry, avoiding scattered, chaotic, low-level redundant construction, and motivating auto manufacturers to improve their research and development capabilities and technological innovation capabilities, actively develop products with independent intellectual property rights, and clarify China in the future. Automotive industry development direction. 3. “Implementation Measures for Automobile Brand Sales Management” (Draft for Comment) Implementation time: On November 25th, as one of the specific operation methods in the “Automobile Trade Policy” system, “Implementation Measures for Automobile Brand Sales Management” made an appearance first to solicit opinions. The Opinions stipulate that since January 1, 2005, passenger cars should implement brand sales and services; since December 1, 2006, all automobiles should implement brand sales and services. The same brand of network planning should be developed and implemented by the only domestic company. An overseas automobile manufacturing company may be directly responsible for formulating and implementing network planning, and may also authorize a domestic company as its general automobile dealer to be responsible for formulating and implementing network planning. The industry believes that the introduction and implementation of brand sales policies on the one hand will play a significant role in regulating the marketing activities of the automotive market. On the other hand, as a distributor who has not obtained the supplier's authorization, if the new policy is issued in this way, it will certainly cause great shock to them. Therefore, some people in the industry believe that brand sales management measures are more considered from the perspective of manufacturers, while less consideration is given to car dealers, which will increase the burden on car dealers. 4, "Second-hand car circulation management measures" (Draft for Comment) Promulgated: September 23 "Second-hand car circulation management measures" (draft for comments) clearly encourage the establishment of a competitive mechanism, expand the distribution channels, and gradually liberalize the used car business, Encourage the operating entities such as qualified car brand dealers to operate second-hand cars, set up branches in other places, and carry out chain operations. The industry believes that this is undoubtedly a stimulant for the long-term sluggish used car market. The diversification of business entities and the diversification of transaction methods will greatly stimulate the used car market. Once used car transactions become active, they will not only drive relevant appraisals and evaluate the development of the industry, but will also stimulate the sales of new cars and drive the development of the entire automobile industry. 5. Management Regulations on Recall of Defective Automobile Products" Implementation date: On October 1, this year, the "Defective Automobile Product Recall Management Regulations" issued on March 15, is the first implementation of the recall system for defective automotive products in China. According to regulations, consumers or car owners find that the car may have defects and have the right to complain to the competent authorities, relevant manufacturers, sellers, renters, or importers or reflect the defects of the car products, and may submit the recall of defective products to the competent authority. Related survey recommendations. At the same time, owners should actively cooperate with manufacturers to carry out recalls of defective automotive products. For a car manufacturer who knows to have a defect or does not report it, the competent department shall, in addition to ordering it to recall, publish it to the public and impose a corresponding amount of fines in accordance with the seriousness of the case. The establishment and implementation of a system for recalling defective automobile products will play a positive role in protecting the legitimate rights and interests of consumers, urging auto operators to improve their quality levels, and promoting the improvement of the integrity of the society as a whole. 6. Time for implementation of the "Administrative Measures for Auto Loan": Compared with the "Management Measures for Automobile Consumption Loans" issued in 1998, the "Auto Loan Management Measures" on October 1 will undergo major changes: First, the scope of lenders will be expanded. The lenders were expanded from wholly state-owned commercial banks to include various commercial banks, urban and rural credit cooperatives, and non-banking financial institutions that were approved to operate automobile loan business; second, borrowers were subdivided into individuals, car dealers, and institutional borrowers, and borrowers were different. People apply for auto loans to provide different qualification conditions and put forward corresponding risk management requirements. Third, different loan deadlines, maximum loan limits, and corresponding risk prevention measures are prescribed for different types of auto loans. Car loan risk management. Some experts commented that the introduction of the new method shows that after experiencing a chaotic situation in the car loan market, central management began to rectify the car loan market, which will help the healthy development of the entire car loan market. At the same time, the implementation of the New Auto Loan Program has opened the door for foreign investment in the auto finance industry. The increase in the number of competitors will make the people’s choice of auto loans more abundant. 7. “Automobile Trade Policy” (Draft for Soliciting Opinions) Implementation date: October 26th, “Automobile Trade Policy” (Draft for Soliciting Opinions) in Automobile Sales, Circulation of Used Vehicles, Circulation of Auto Parts, Automobile Scraping and Recycling, Automobile Trade, etc. Made many provisions. For example, automobile suppliers and distributors should define the rights and obligations of both parties by signing a written contract. They will also implement automobile brand sales and services, encourage the circulation of used cars, and fully release auto parts distribution. As China's entry into the WTO must pass, the introduction of this policy means that China's auto industry from accessories, production and sales to the use of old cars to foreign investment is fully open, and some non-brand sellers will face obsolescence, while foreign-owned foreign investment is expected to enter the second-hand auto market and auto parts, To a certain extent, it will cause a full reshuffle of the auto market. 8. “Limits on Fuel Consumption of Passenger Cars” Implementation date: October 28 “Limits on Fuel Consumption of Passenger Cars” was issued jointly by the General Administration of Quality Supervision, Inspection and Quarantine and the National Standardization Administration Committee. The quality puts forward requirements for the limits of fuel consumption of passenger vehicles. For example, the fuel consumption limit of a passenger vehicle with a full vehicle mass of 1 ton is 8.3 liters/100 km in the first phase, and 7.5 liters/100 km in the second phase. The standard will be implemented in two phases. For newly-developed vehicles, the implementation date of the first phase is July 1, 2005, and the second phase is implemented on January 1, 2008. The models under production are implemented one year behind the new development vehicle respectively. The implementation of the new standard is expected to reduce the energy waste caused by the increasingly low energy efficiency due to the increase in car ownership; at the same time, it will also help domestic joint venture car companies introduce real advanced technologies. 9. "Mid-term and long-term energy-saving special plan" Implementation date: November 25th "Energy-saving medium and long-term special plan" proposes that China will study the fiscal and taxation policies that encourage the development of energy-saving models and accelerate the elimination of high-fuel-consuming vehicles, and implement the fuel tax reform plan at the right place; Cancel all unreasonable regulations that limit the use and operation of low-fuel consumption, small-displacement, low-emission vehicles; at the same time, study and encourage the production and consumption policies of hybrid vehicles and pure electric vehicles. This means that small-displacement cars will no longer be limited. With the implementation of the fuel tax reform plan, the market position of small-displacement vehicles may change drastically.

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