In November, the auto market increased by 10% from the previous month. New energy development needs policy boost

In November, the sales volume of narrow passenger vehicles in China was 2,472,704, an increase of 3.9% year-on-year, and a year-on-year increase of 9.9%. The height of the auto market in November was in line with the characteristics of purchase tax preferential policies that began in October 2015, which promoted the gradual acceleration of sales volume at the end of the year; however, due to the reduction of the working day, many car companies have difficulty in achieving their annual targets and will focus on the impact of next year. The performance of the auto market in December was hardly optimistic.

At the same time, although the market for new energy passenger vehicles in China continues to rise, financial subsidies are significantly lower for new energy passenger vehicles, and the policy that “non-private users purchase more than 30,000 kilometers of new energy vehicles to receive state subsidies” policy The great pressure on the cost of auto companies will not be conducive to the overall development of China's new energy auto industry.

On December 8, the National Passenger Car Market Information Association (hereinafter referred to as "CCC") released data: In November 2017, the sales volume of narrow passenger vehicles in China was 2,472,704, an increase of 3.9% year-on-year, and a 9.9% increase from the previous month. According to the data from the first 11 months, the cumulative sales volume of narrow passenger vehicles in China from January to November exceeded 20 million to reach 21,527,530 units, a year-on-year increase of 2.3%.

It is worth noting that in November, the auto market grew nearly 10% month-on-month, which is a good performance in November. It also shows that the auto market continues to pick up at the end of the year. At the same time, in the same period of last year, the auto market has entered explosive growth. In November, the passenger vehicle market sales continued to grow 3.9% year-on-year, showing better-than-expected performance, which also drove the annual growth rate of the auto market to 2.3%.

In response, Cui Dongshu, secretary-general of the National Passenger Vehicle Market Information Association, analyzed that the height of the auto market in November was in line with the characteristics of purchase tax preferential policies that began in October 2015, which promoted the gradual acceleration of sales volume at the end of the year; while sales volume was higher in the same period of last year. Under the environment of the base and purchase tax concessions this year, the auto market sales in November still rose 3.9% year-on-year, indicating that the structural pull effect of the tax reduction policy is still relatively obvious.

November performance exceeded expectations or caused sluggish December

In terms of specific models, in November, sales of cars, SUVs, and MPVs all saw significant growth. However, only SUV models continued to grow year-on-year and double-on-quarter, SUVs remained the main driving force for the growth of the auto market; the sedan market was highly-based last year. Affected, the third consecutive month of negative sales growth compared to the same period last year; continued sluggish MPV, this month became the largest increase in the chain sales, the year-on-year downward trend has also slowed down.

Among them, although the SUV model still maintains a double-digit growth compared to the previous quarter, its growth rate has been slowing down. In November, SUV models sold a total of 1,085,415 vehicles, an increase of 10.0% from the previous quarter. The year-on-year growth rate showed a declining trend for three consecutive months. The year-on-year growth rate of 12.5 percent declines also dragged down the cumulative increase to 16.5%. However, in November, the sales of SUV models lag behind only 97,601 sedan sales, and the completion of the surpassing sales of cars is just around the corner.

In November, a total of 1,813,016 cars were sold, an increase of 8.5% from the previous month. Based on the ultra-high sales base of the same period of last year, the sales volume only slightly decreased by 0.2% year-on-year, which further reduced the declining trend of the cumulative sales of cars throughout the year, 1- In November, a total of 10,337,193 cars were sold, a year-on-year decline to 3.6%. In view of this, Cui Dongshu believes that the continuous sales of new energy vehicles are the main force supporting and driving the stability of the car market. In November, sales of new energy vehicles reached 80,700 vehicles, an increase of 16,000 vehicles from the previous month, an increase of 87% year-on-year.

The downturn in the MPV market has ushered in a short-term bounce. In November, MPVs sold a total of 204,273 vehicles, an increase of 18.9% from the previous quarter, which was the fastest growth year-on-year for all models; at the same time, the sales volume of MPV models also decreased to 12.6% year-on-year, but the accumulated sales in the first 11 months still remained. The decline of 18.1% compared to the same period last year, the pattern of weakness is obvious. Cui Dongshu analyzed that MPVs and SUVs whose functions and uses overlapped form a see-saw effect. The popularity of SUVs will inevitably affect the sales of MPVs. At the same time, although the sales of high-end models have surged in the MPV market, the low-end home MPVs occupying 90% of sales have continued to persist. The downturn has caused the weak pattern of the MPV market.

For the auto market performance in the last month of 2017, Cui Dongshu predicted that there will be 21 working days in December, one less working day than the same period in 2016, and that the last two days of the year are holidays, so it is expected that some of 2017 sales will be carried forward. In 2018, at the same time, as the purchase tax incentives in 2017 are not as high as the previous year, the sales pressure will be greater than the same period. In addition, each car company is expected to have a higher sales volume in 2017 at the beginning of the year. Today, most car companies have difficulty in achieving their goals. Therefore, at the end of 2017, manufacturers will not do their best to impact sales. Based on the above factors, the performance of the auto market in China in December will be more worrying.

New Energy Passenger Vehicle Structure Strengthens Industrial Development Needs Policy Boost

In November, the new energy passenger vehicle market showed a structural strength. In November, sales of new energy vehicles reached 80,700, an increase of 87% year-on-year. Among them, the growth rate of pure electric cars reached 71%, which reflects the differential pulling effect of the regional market; and due to the impact of low base, the sales of plug-in hybrid vehicles in November increased by 222% year-on-year.

However, the continued rise in the new energy passenger car market is not easy. In 2016, the publicity information for the subsidies for the promotion and application of new energy vehicles (the second batch) revealed that of the 16.76 billion yuan in the second batch of subsidies, 16.2 billion yuan were passenger car subsidies, while the subsidy for passenger cars was 500 million yuan, which only accounted for the total amount of subsidies. 3%, the amount of subsidy for passenger vehicles is seriously low.

At the same time, in order to plug up the loopholes of "cheat compensation," the current policy that "the number of new energy vehicles purchased by non-private users that have accumulated more than 30,000 kilometers in length before they can receive state subsidies" has resulted in long periods of recovery, leading to new energy vehicle companies recovering funds. The pressure is great, which is not only unfavorable to the fairness of financial subsidies, but also because the high cost of capital has greatly restricted the R&D, production and promotion of new energy vehicles by new energy vehicle manufacturers.

In addition, in the world, the development of new energy passenger vehicles with wider coverage is the common trend. If the Chinese auto industry wants to rely on new energy vehicles to achieve breakthroughs, it is necessary to strengthen the development of new energy passenger vehicles, so that new energy passenger vehicles. Successful subsidy can be successfully obtained to make our country's new energy vehicles develop faster.