Jinwu Financial News | SPDB International said that on April 26, the “Automobile Trade-In Subsidies Implementation Rules” jointly issued by 7 departments including the Ministry of Commerce and the Ministry of Finance were released to the public, clarifying the automobile trade-in financial subsidy policy. The rules clarify the scope and criteria of the subsidy.
The bank believes that the impact of this automobile trade-in subsidy can be partly based on demand release and sales growth brought about by the previous large-scale automobile consumption stimulus policy. It should be noted that since the subsidy targets individual car owners who meet the requirements after the models are scrapped, the actual base is lower than the scope of previous policy concessions, so the driving effect will also be reduced.
The bank continued that the strength of the current automobile trade-in subsidy rules is in line with expectations. The bank believes that during the Beijing Auto Show, the implementation of car trade-in policy rules will ease consumers' wait-and-see sentiment about buying cars, and greatly boost potential consumers' desire to buy cars, especially new energy vehicles. The bank believes that the demand trend in China's NEV market this year is expected to be similar to last year, starting to gradually strengthen in the second quarter. The implementation of the trade-in policy rules is expected to push the sales volume of China's NEV industry into a pivotal position in the 11 million 12 million vehicle range this year. At the same time, the subsidy policy favors price-sensitive consumers, that is, potential car buyers of models under 200,000 yuan. As a result, car companies with major model layouts such as BYD (01211) and Zero Run (09863) are more likely to benefit from this price segment. Xiaopeng Motor (09868), which will soon be released, is also expected to benefit from the model below 200,000 yuan.