A-share auto sector surged 4.6% after Beijing's auto purchase restriction policy was loosened, or 100,000 additional targets were added

March 24, the Ministry of Commerce released an announcement that Beijing is currently studying auto consumption stimulus policies. The policy includes three directions of promoting the replacement of old cars with new ones, releasing no less than 100,000 new energy vehicle purchase targets in the first half of the year and launching suburban license plates. It is expected to add about 20 billion yuan of new social retail sales.

Automobile-related manufacturing consumption in China's economy accounts for a huge proportion of the country's GPD of about 10%. Because of the arrival of the "new crown epidemic", so that China's auto sales in February fell 80% year-on-year, automobile-related industries have been severely hit.

According to statistics from the Ministry of Commerce. Automobile consumption is the largest commodity category in Beijing's commodity consumption, and in 2019, the retail sales of automobile commodities, which accounted for 13.8% of the share of social retail sales, declined by 8.0% year-on-year (the national growth rate for the same period was -0.8%), pulling down the growth rate of social retail sales in the city of Beijing by 1.3 percentage points.

So in order to revitalize automobile consumption, the Ministry of Commerce put forward three specific measures are as follows:

One is to launch as soon as possible the elimination of high-emission old car renewal policy, release a portion of the old car stock index, through the setting of subsidies and incentives and time limits for the purchase of the car, in the year, transformed into the contribution of the consumption of new purchases of automobiles.

The second is for the city without a car and in the waiting range of new energy vehicle demand families, the first half of the release of no less than 100,000 more car purchase target, to promote the just need families to buy a car consumption, is expected to be quickly converted into consumption within this year incremental will be added to the social zero amount of about 20 billion yuan.

Thirdly, the study launched a special minibus license plate limited to driving in the suburbs, not included in the city's motor vehicle ownership control indicators, effectively meet the demand for suburban families to buy a car to travel at the same time, and orderly guide the non-capital function of the dissolution of the region and the synergistic development of the region.

But the Ministry of Commerce's website has now taken down the article. That puts a question mark over the enforceability of the stimulus.

An industry expert commented that if this stimulus policy is true, then the stimulus is quite large. 2019 annual new energy minibus indicator 60,000. Among them, the individual indicator is 54,000, the unit indicator is 3,000, and the operating indicator is 3,000.

100,000 new energy vehicle purchase indicators are approximately equal to the number of new energy personal indicators in Beijing for two years. It's equivalent to front-loading the number of car buyers for the next two years, which is a huge release.

After entering March, the central and local governments have issued a series of documents instructing them to promote automobile consumption.

The document issued by the Ministry of Industry and Information Technology (MIIT) on March 2 proposed, "We should actively stabilize the traditional bulk consumption of automobiles and other vehicles, and encourage automobile purchase-restricted areas to appropriately increase the quota of automobile license plates, and drive the consumption of automobiles and related products."

March 13, the Development and Reform Commission and other twenty-three departments jointly issued a document proposed to "promote automobile purchase restrictions to guide the use of policy changes to encourage automobile purchase restrictions on the appropriate increase in automobile license plate quota areas."

Beijing, if the launch of automobile consumption promotion policy, then for the national local governments to promote the implementation of automobile consumption policy, will be a huge demonstration effect. Influenced by this news, auto stocks collectively soared. Great Wall Motor A shares, BAIC Blue Valley rose, Yutong Bus, SAIC Group, Changan Automobile collective rose more than 7%. The automobile whole car plate rose 4.62%.

Recently affected by the "new crown epidemic", the capital market also suffered a heavy blow, the automobile consumption promotion measures have just released the signal, the capital market has made a rapid response to the good. This shows that the capital and the real economy is now close to the bottom, not far from the counterattack.

This article comes from the author of the automobile home car family number, does not represent the views of the automobile home position.