China: Plan on the Revitalization and Restructuring of Autom
Date：2016-08-23 18:36:10 Source：未知 Click：
To cope with impact of the international financial crisis and implement the general requirements of the CPC Central Committee and State Council for security growth, expansion of domestic demand and structural adjustment, stabilize automobile consumption, speed up the structural adjustment, enhance the capability of independent innovation, promote industrial upgrading and the continuous, healthy and stable development of China’s automobile industry, hereby the plan is specially formulated, as an action plan of comprehensive counter-measures for the automobile industry. The planning period is between 2009 and 2011.
I. Status and Situation of the Automobile Industry
Since the beginning of 21st century, China’s automobile industry has been rapidly developing, forming a production and support system of vehicles and parts of all types and complete series. The industrial concentration has been increasingly enhanced and the level of product technology has been significantly improved. China has become the world’s largest producer of automobiles. However, problems, such as irrational industrial structure, low technological level, weak self-development capacity and imperfect consumer policy, are still outstanding, and constraints of energy, environmental protection and urban transportation are become more and more evident. Since the second half of 2008, along with the spread and deepening of international financial crisis and the serious decline of the international automobile market, the domestic automobile market has been seriously affected, resulting in negative growth in the production and sales volume of the whole industry, downturn in the economic efficiency of key companies and weak development of cars of original brands. The development of our automobile industry is facing a grim situation.
It should be noted that restructuring is an essential requirement for further development of the industry. After experiencing years of rapid growth, the automobile industry is bound to be greatly adjusted, in order to solve the accumulation of numerous contradictions between the internal structure and external environment. The international financial crisis has just caused the early arrival of the period of structural adjustment. At present, China’s automobile market is at the growth stage, the demand of the urban market has a huge potential and the development of the automobile industry has not changed fundamentally. To actively respond to international financial crisis and maintain stable and rapid economic development, we must speed up the restructuring and revitalization of the automobile industry.
II. Guiding Ideology, Basic Principles and Objectives
(1) Guiding Ideology
We should comprehensively implement the spirit of the 17th CPC National Congress, regard Deng Xiaoping Theory and important thought of “Three Represents” as guidance, thoroughly apply the scientific development concept, develop urban and rural markets, stabilize and expand the automobile consumption demand though the implementation of positive consumer policies; with the restructuring as the main line, promote automotive companies’ merger and restructuring, strengthen the research and development of key technologies, speed up the technical reform and enhance the corporate quality; with new energy automobiles as breakthrough, enhance the independent innovation, nurture original brands and create new competitive advantages, to promote the continuous, healthy and stable development of the automobile industry.
(2) Basic Principles
We would expand the domestic demand and focus on the combination of finance & taxation policy incentive and consumer environment improvement; not only base ourselves on the current situation and take financial incentives, to expand the demand of domestic automobile market and ensure economic growth, but also focus on the long term, improve the consumer policy and foster the consumer market.
We should adhere to the restructuring and focus on the combination of market role exertion and government guidance reinforcement; make use of market mechanisms and macro-control means, to promote company merger and restructuring, integrate factor resources and enhance the degree of industrial concentration, to achieve the organizational and structural optimization and upgrading of the automobile industry.
We would adhere to independent innovation and focus on the combination of the transformation of traditional products and promotion of new energy automobiles; strengthen the technical transformation, improve the level of R & D, accelerate product updating and upgrading, and structural adjustment, make efforts to foster original brands and actively develop energy-concerving and environment-protective new-energy automobiles.
We would adhere to the industrial upgrading and focus on the combination of industrial development and value-added service; automotive manufactures should not only enhance the manufacturing capabilities, but also expand automobiles’ financial service and after-sales service, strengthen the interrelationship between production and service and promote mutual support, to achieve the coordinated development of automobile manufacturing and service industry.
(3) Planning Objectives
1. Steady growth should be achieved in automobile production and sales. The automobile production and sales volume and three-year average growth rate should reach over 10000000 and 10% respectively.
2. Automobile consumption environment should be improved significantly. A complete framework system of automobile consumer policies and regulations, scientific and rational system of automobile taxes and fees, modern automobile service system, intelligent traffic management system and electric vehicle infrastructure supporting system should be established in order to ensure the stable development of the automobile market.
3. Market demand structure should be optimized. The market share of passenger vehicles of 1.5 liters and below should reach over 40% including that 15% of small vehicles below 1.0L. And the market share of heavy goods vehicles should reach over 25% of cargo vehicles.
4. Significant progress should be made in merger and restructuring. Through merger and restructuring, 2 to 3 large-scale automobile enterprise groups with production and sales scale more than 2 million and 4 to 5 automobile enterprise groups of scale more than 1 million should be established. The number of automobile enterprise groups with production and sales scale accounting for 90% of the market share should be reduced from the current 14 to less than 10.
5. Proportion of the automobile market of original brands should be expanded. The market share of passenger vehicles of original brands should reach over 40% including that 30% of automobiles. The export proportion of original automobile brands should account for nearly 10% of the production and sales volume.
6. Scale of the production and sales of electric vehicles should be formed. We should transform the existing production capacity, form a capacity of 0.5 million new energy automobiles, including pure electric type, plug-in hybrid type and common hybrid type, of which sales volume should account for 5% of the total volume of passenger vehicles. Such products of major passenger vehicle manufacturers should be certified.
7. Level of vehicles’ R & D is to be substantially improved. Vehicle products under self-research and development, especially the energy-saving, environmental protection and safety indicators, should reach the international advanced level. The main car products should meet regulatory requirements of developed countries. The safeness and comfort should be close to the international level. The overall technology of new energy automobiles should reach the international advanced level.
8. Independence should be achieved in the technology of key parts and components, such as engines and transmissions, and those in steering systems, braking systems, drive systems, suspension systems and bus control systems. Besides, the technology of key parts and components specially used for new energy automobiles should reach the international advanced level.
III. Main Tasks of the Industrial Restructuring and Revitalization
(1) Foster of the Automobile Consumption Market
We should take effective measures to keep the decline in automobile production and sales within limits and ensure a steady growth in 2009. As to the purchase, use, disability and updating of automobiles, we would adjust and introduce policies and measures to encourage automobile consumption and restore the market’s confidence. Besides, we should sort out and cancel various regulations which are not conducive to the development of small automobiles, guide and increase its consumption through taxes and other economic means.
(2) Promotion of the Restructuring of Automobile industry
We should encourage FAW, Dongfeng, SAIC, Chang’an and other large automobile companies to have mergers and acquisitions across the country, and support the regional merger and restructuring of Beijing Auto, Guangzhou Auto, Chery, Sinotruk and other automobile companies, and the scale expansion of key automotive parts companies through merger and restructuring so as to increase the share in the automotive supporting market share at home and abroad.
(3) Support for Companies’ Independent Innovation
Taking companies as the mainstay, we should strengthen the construction of product development capacity. Firstly, it is important to establish a set of vehicle design and development processes and master the body and chassis development technology, matching technology of vehicle, engine and transmission, exhaust and purification technology; break through the collision safety, NVH (vibration, noise and harshness) and other key technologies; control the design and manufacturing costs for new energy automobiles. Secondly, the technical level of energy-saving, environmental protection and safety of traditional passenger vehicles should be improved. We should give key support for the research and manufacturing of auto direct-injection gasoline engines reaching State IV emission standards and diesel engines below 1.5 liters and with power per liter over 45 kilowatts; break through the key technology of chassis integration of heavy commercial vehicles and improve vehicles’ drive comfort and control stability. Key support should be given to the research and development of high-power diesel engines and its electronic control system for high-pressure fuel injection and post-processing system, commercial vehicles’ automatic machinery transmission (AMT) and other key technologies. Thirdly, we should establish a strategic alliance for the automobile industry and form a long-term cooperation mechanism integrating industry, academia and research.
(4) Implementation of Special Technical Reform Projects
We should formulate the Technical Progress and Reform Project and Product Lists of the Automobile Industry, support the technical process and restructuring of the automobile industry and increase the technical transformation efforts; focus on the support for the power modules industrialization of new energy automobiles, technical upgrading of internal combustion engines, the industrialization of advanced transmissions and key parts, and construction of independent public testing agencies and technology center for key automotive parts.
We should develop key parts for the upgrading of vehicle performance. Key support should be given to the development and research of electronic control systems, such as those for the body stability, suspension control, anti-slip control, electronic hydraulic brake, body bus, digital instruments and so on, and products including over-six-speed manual and automatic transmissions, dual-clutch automatic transmissions, step-less automatic transmissions, automatic mechanical transmissions for commercial vehicles, and other products.
(5) Implementation of Strategies for New Energy Automobiles
We should promote the industrialization of pure electric vehicles, plug-in hybrid vehicles and their key parts. It is important to master the technology for optimal design, large-scale production processes and cost control of special-purpose engines and power modules (electric motor, battery and management system, etc.) for new energy automobiles. A power module production system should be established and a one-billion Ah production capacity of high-performance single power batteries for automobiles should be created. Besides, we should develop special parts for common hybrid automobiles and new fuel automobiles.
(6) Implementation of Strategies for Original Brands
We should formulate policies related to technology development, government procurement, financing channels and etc., guide automobile manufacturers to regard the development of original brands as the focus of corporate strategies and support them in this development through self-development, joint development, domestic and overseas mergers and acquisitions and in various other ways.
(7) Implementation of Strategies for the Export of Automotive Products
We should speed up the construction of the state automobiles and parts export base; build up the public service platforms for automobile export information, product certification, R & D of technology with common features, testing, inspection and training.
(8) Development of Modern Automotive Service Industry.
We should accelerate the development of automotive research and development, productive logistics, automotive retailing and after-sales service, car rental, second-hand automobile trade, automobile insurance, consumer credit, parking service, disability recycling and other services, improve relevant laws, regulations and management systems, and support the backbone of automobile manufacturers in accelerating the establishment of automobile finance companies and carrying out automobile consumer credit and other businesses.
IV. Policies and Measures
(1) Reduction of Passenger Vehicle Purchase Tax
From 20th January 2009 to 31st December, 2009, 5% will be reduced from the purchase tax of passenger vehicles of 1.6 liters and below.
(2) Development of “Vehicles’ Spread to Countryside”
RMB 5 Billion Yuan from the newly added central investment will be allocated for the provision of one-time financial subsidies for farmers who disable three-wheeled and low-speed vehicles, and purchase new light trucks and minibuses of 1.3 liters or below on a barter basis.
(3) Acceleration of Old Vehicles’ Disability and Updating
We will adjust the financial subsidy policy for old vehicles’ disability and updating, enhance the subsidy support and standard, and speed up the elimination of old vehicles. The total subsidy fund 2009 for old vehicles’ disability and updating is increased from RMB 0.6 Billion Yuan in 2008 to 1 Billion;
(4) Sorting and Cancellation of Unreasonable Restrictions on Vehicle Purchase
Various regions and departments should seriously sort out and cancel current unreasonable restrictions on vehicle purchase, including the number of license registrations, vehicle model restrictions, various regional market protection measures, various types of administrative fees and out-of-region tolls, and other measures with direct or indirect impact on vehicle purchase, and report the sorting situation to the National Development and Reform Commission before the end of March 2009. As to those restrictions which need to be retained, they should be suspended from 1st April 2009 to 31st December, 2009, of which can not be suspended should be reported to the State Council for approval before 10th March 2009.
(5) Promotion and Regulation of Automobile Consumer Credit.
We will modify and improve the automobile consumer credit system and pay close attention to the formulation of automobile consumer credit regulations, so that standardization and systematization can be achieved in the whole process of automobile consumer credit, including credit investigation, credit processing, vehicle mortgage, loan guarantee, default disposal and etc.
We will support the backbone of eligible domestic automobile manufacturers in the establishment of automotive finance companies, promote the diversification of the automobile consumer credit mode and normal development of the securitization of credit assets, and support automotive finance companies in issuing financial bonds.
(6) Promotion and Regulation of the Development of Second-hand Automobile Market
We will set up national standards for second-hand automobile identification and assessment and system for temporary property rights registration and adjust the VAT collecting mode for second-hand automobile trade; greatly develop professional second-hand automobile dealers and promote the automobile brand dealers to develop old-for-new, old-for-old and other automobile trading businesses; cancel unreasonable charges in the second-hand automobile market and reduce the trading costs.
It is also important for us to strengthen the supervision of the second-hand automobile market, strictly manage the main market access, standardize the second-hand automobile transactions and safeguard the market order; actively promote sample of second-hand automobile trading contract and protect legitimate rights and interests of consumers; give full play to the role of industrial associations, strengthen industrial self-discipline and promote honest operation of companies.
(7) Acceleration of the Construction of Urban Road Traffic System
We plan to develop a comprehensive modern urban traffic and transportation system and improve the overall management efficiency and level of modernization; implement the project of free flow of traffic and encourage the acceleration of construction of urban rail transit facilities. People’s government of all cities should take positive measures to promote the car parking construction and regulate parking charges. Large parking areas should be constructed at the transit hub, to facilitate the transfer of public transport and the pressure of traffic jams.
(8) Improvement of the Automobile Company Restructuring Policy
We will formulate policies and measures to support automobile company restructuring, properly resolve the problems including: placement of surplus staff, transfer of corporate assets, debt assessment and disposal, estate tax and interest allocation; support automobile manufacturers in integration of product resources and development of new products through merger and restructuring; encourage them to jointly develop and manufacture new automotive products and key assemblies in Technical Progress and Reform Project and Product Lists of the Automobile Industry. The establishment of new automobile manufacturers and out-of-region factory branches must base on the merger of the existing manufacturer.
(9) Strengthening of the Investment for Technical Progress and Reform
In the next three years, RMB 10 Billion Yuan from the newly added central investment will be allocated as a special fund for technical progress and reform. We will focus on supporting automobile manufacturers in product upgrades and improvement of the level of energy saving, environmental protection, safety and other key technologies; develop key assemblies to fill the domestic gaps; construct a R & D and testing platform of automobiles and parts technology with common features develop new energy vehicles and special-purpose parts.
(10) Promotion of the Use of Energy-saving and New Energy Vehicles
National energy-saving and new energy vehicle demonstration project will be launched. Subsidy funds will be allocated by the central government for the support to big and medium-sized cities’ demonstration promotion of hybrid vehicles, pure electric vehicles, fuel cell vehicles, energy-saving and new energy vehicles. People’s government above the county level should formulate a plan to initially promote and use new energy vehicles in fields including urban public transport, rental, public affairs, sanitation, postal services, airports and etc. We will establish a fast charging network for electric vehicles and speed up construction of automobile parking lots and other public charging facilities in public places.
(11) Implementation and Improvement of Automobile Industry Development Policies
We will pay close attention to the formulation of road motor vehicle regulations and improvement of the regulatory system of motor vehicle management; launch standard research formulations which will greatly enhance and protect the industry, pay close attention to the formulation of product standards and testing methods for new energy vehicles; implement the withdrawal mechanism for vehicle (including motorcycles, three-wheeled motor vehicles, low-speed trucks) manufacturers; formulate the access standard for key assemblies of new energy vehicles; carry out research on the formulation of measures for encouraging three-wheeled motor vehicle and low-speed truck manufacturers to transfer to relevant industries.