Energy Saving Subsidy Threshold Improves New Deal from October 1
The 2011 China Automotive Industry Development International Forum, with the theme of “Automobile Society and Industry Futureâ€, opened on September 2, 2011 in Tianjin Binhai New Area. Senior officials from government departments, experts and scholars, and companies have conducted extensive and in-depth discussions on the development of the automotive industry. Sina car video broadcast this forum.
The Director of the Department of Economic Development of the Ministry of Finance gave a speech to Di Hai: "Improve policies, innovate mechanisms, and continue to guide the consumption of energy-efficient cars." The following is a report of the actual speeches.
The Director of the Department of Economic Development of the Ministry of Finance Xiangdihai Xiangdi: Dear leaders, ladies and gentlemen, very fortunate to participate in this international forum for the development of the automotive industry, I am not an expert in the automotive field, but I am very fortunate enough I am also very pleased to focus on this topic and to discuss the future of China’s automobile development with the leaders and experts of the delegation.
I will discuss three points in the following fiscal policy:
First, supporting the development of energy-saving vehicles is an important measure for financial support for energy-saving emission reduction and response to climate change.
China is a large country with a large population. It is in the period of accelerated development of industrialization, urbanization, and modernization. With the rapid increase in income levels of residents and the dramatic changes in production and living standards, the consumption of automobiles has ushered in an explosive growth. At the same time, our resources and environmental resources are insufficient, and the constraints on energy and the environment that traditional car development faces are becoming increasingly apparent. To vigorously support the development of energy-saving vehicles is not only an effective way to break the constraints of China's automobile consumption and energy environment, but also a measure to promote energy conservation, emission reduction, and responding to changes in automobiles. It is also an inevitable requirement for our policy to support scientific development.
Second, China’s policy to support the promotion of energy-saving vehicles has achieved good policy results.
It is also a common practice worldwide to guide energy-efficient car consumption through fiscal policies. In June 2010, the promotion of energy-saving vehicles was launched. In just over a year, as of the end of 2011, it was the end of May this year. It has cumulatively supported and promoted 2.15 million 1.6-liter or lower energy-saving vehicles. The effect is mainly reflected in the following: In several aspects, first, the market share of energy-saving automobiles has increased substantially. Under the guidance of fiscal policies, the structure of the auto market has undergone active development. The number of passenger cars with 1.6-litre or lower models has increased from 101 before promotion to the present. Of the more than 400, so far, there should be more. As of May this year, the production capacity of energy-saving vehicles reached more than 300,000 units in a single month, accounting for more than half of the passenger cars with 1.6 liters or less. The pace of development of our passenger vehicles in the direction of energy conservation and miniaturization has accelerated significantly. This is the first effect.
Second, it has achieved good results in terms of expanding domestic consumption.
According to calculations, the 2.51 million energy-saving vehicles that we currently support and promote have directly stimulated consumption. At the same time, this policy has effectively promoted the scale-up and industrialization of energy-saving vehicles, driving the decline in the value of finished products and sales, and the rapid expansion of China's energy-saving automotive consumer market.
Third, it promoted the improvement of automobile fuel consumption standards.
We know that the ultimate goal of the fiscal policy is to guide the improvement of the overall industry standards. Through the promotion of energy-saving vehicles in the past year, the ratio of the 1.6-liter passenger vehicle or less to reach the third-phase fuel consumption target value in advance has exceeded 50%. This is a smooth implementation. The third stage fuel consumption target value creates a good policy environment and a condition.
Where do we financially support this energy-saving car promotion policy? How to go? The central government will further improve its policies and continue to support the development of energy-saving vehicles. Promoting energy-saving vehicles is not only an effective means of expanding automobile consumption, but also an important measure for advancing the adjustment of energy-saving vehicles. During the 12th Five-Year Plan period, China’s urbanization accelerated its development and consumption structure. During the critical period of the upgrade, the demand for automobiles will continue to maintain a relatively rapid growth. It is very important to adjust the consumption structure of automobiles and vigorously promote energy-saving vehicles.
Combining this situation, the next step will be to dynamically adjust the subsidy policy in accordance with the industry’s technological progress and fuel consumption standards. The implementation of the pre-subsidy policy plan to be implemented on September 30, 2011 and implementation of the new energy-saving vehicle subsidy policy starting from October 1, 2011 will raise the threshold and require the average fuel consumption per 100 kilometers to be reduced from the current 6.9 to 6.3 liters. . A mature energy-saving automobile market will ultimately rely on innovation and hard work. The government will only guide.
Moderator: Thank you very much for giving a very insightful speech to the Director. The policy support of energy-saving vehicles has achieved remarkable results, with 2.51 million vehicles, saving more than 700,000 tons, and the market share has also rapidly increased. And tell us a message, the support policy continues, and the threshold has also been increased accordingly, so this is very conducive to the development of energy-saving cars from the policy environment.
The Director of the Department of Economic Development of the Ministry of Finance gave a speech to Di Hai: "Improve policies, innovate mechanisms, and continue to guide the consumption of energy-efficient cars." The following is a report of the actual speeches.
The Director of the Department of Economic Development of the Ministry of Finance Xiangdihai Xiangdi: Dear leaders, ladies and gentlemen, very fortunate to participate in this international forum for the development of the automotive industry, I am not an expert in the automotive field, but I am very fortunate enough I am also very pleased to focus on this topic and to discuss the future of China’s automobile development with the leaders and experts of the delegation.
I will discuss three points in the following fiscal policy:
First, supporting the development of energy-saving vehicles is an important measure for financial support for energy-saving emission reduction and response to climate change.
China is a large country with a large population. It is in the period of accelerated development of industrialization, urbanization, and modernization. With the rapid increase in income levels of residents and the dramatic changes in production and living standards, the consumption of automobiles has ushered in an explosive growth. At the same time, our resources and environmental resources are insufficient, and the constraints on energy and the environment that traditional car development faces are becoming increasingly apparent. To vigorously support the development of energy-saving vehicles is not only an effective way to break the constraints of China's automobile consumption and energy environment, but also a measure to promote energy conservation, emission reduction, and responding to changes in automobiles. It is also an inevitable requirement for our policy to support scientific development.
Second, China’s policy to support the promotion of energy-saving vehicles has achieved good policy results.
It is also a common practice worldwide to guide energy-efficient car consumption through fiscal policies. In June 2010, the promotion of energy-saving vehicles was launched. In just over a year, as of the end of 2011, it was the end of May this year. It has cumulatively supported and promoted 2.15 million 1.6-liter or lower energy-saving vehicles. The effect is mainly reflected in the following: In several aspects, first, the market share of energy-saving automobiles has increased substantially. Under the guidance of fiscal policies, the structure of the auto market has undergone active development. The number of passenger cars with 1.6-litre or lower models has increased from 101 before promotion to the present. Of the more than 400, so far, there should be more. As of May this year, the production capacity of energy-saving vehicles reached more than 300,000 units in a single month, accounting for more than half of the passenger cars with 1.6 liters or less. The pace of development of our passenger vehicles in the direction of energy conservation and miniaturization has accelerated significantly. This is the first effect.
Second, it has achieved good results in terms of expanding domestic consumption.
According to calculations, the 2.51 million energy-saving vehicles that we currently support and promote have directly stimulated consumption. At the same time, this policy has effectively promoted the scale-up and industrialization of energy-saving vehicles, driving the decline in the value of finished products and sales, and the rapid expansion of China's energy-saving automotive consumer market.
Third, it promoted the improvement of automobile fuel consumption standards.
We know that the ultimate goal of the fiscal policy is to guide the improvement of the overall industry standards. Through the promotion of energy-saving vehicles in the past year, the ratio of the 1.6-liter passenger vehicle or less to reach the third-phase fuel consumption target value in advance has exceeded 50%. This is a smooth implementation. The third stage fuel consumption target value creates a good policy environment and a condition.
Where do we financially support this energy-saving car promotion policy? How to go? The central government will further improve its policies and continue to support the development of energy-saving vehicles. Promoting energy-saving vehicles is not only an effective means of expanding automobile consumption, but also an important measure for advancing the adjustment of energy-saving vehicles. During the 12th Five-Year Plan period, China’s urbanization accelerated its development and consumption structure. During the critical period of the upgrade, the demand for automobiles will continue to maintain a relatively rapid growth. It is very important to adjust the consumption structure of automobiles and vigorously promote energy-saving vehicles.
Combining this situation, the next step will be to dynamically adjust the subsidy policy in accordance with the industry’s technological progress and fuel consumption standards. The implementation of the pre-subsidy policy plan to be implemented on September 30, 2011 and implementation of the new energy-saving vehicle subsidy policy starting from October 1, 2011 will raise the threshold and require the average fuel consumption per 100 kilometers to be reduced from the current 6.9 to 6.3 liters. . A mature energy-saving automobile market will ultimately rely on innovation and hard work. The government will only guide.
Moderator: Thank you very much for giving a very insightful speech to the Director. The policy support of energy-saving vehicles has achieved remarkable results, with 2.51 million vehicles, saving more than 700,000 tons, and the market share has also rapidly increased. And tell us a message, the support policy continues, and the threshold has also been increased accordingly, so this is very conducive to the development of energy-saving cars from the policy environment.
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