Agencies estimate that demand for new car purchases is expected to reach 2.58 million units
Guangzhou introduced an implementation plan to promote large-scale equipment renewal and consumer goods trade-in.
The “Plan” is divided into six parts and 24 items. It is clear that Guangzhou will implement four major actions: large-scale equipment renewal, consumer goods trade-in, waste recycling, and standard upgrading, to promote industrial upgrading and transformation, release investment and consumption potential, and accelerate the development of new quality productivity.
According to the goals proposed in the “Plan”, by 2027, the scale of equipment investment in the industrial, construction, transportation, agriculture, education, cultural tourism, medical and other fields in Guangzhou will increase by more than 25% compared to 2023; the energy efficiency of major energy equipment in key industries has reached the energy efficiency level, and the proportion of production capacity with environmental protection performance reaching A level has increased dramatically; the penetration rate of digital R&D and design tools and the numerical control rate of key processes in industrial enterprises above scale will exceed 90% and 75% respectively; the annual recycling and dismantling volume of used cars will exceed 300,000 vehicles, and the share of recycled materials in the resource supply will exceed 300,000 vehicles Further improvement, and the level of recycling continues to rise.
According to the CITIC Construction Investment Research Report, unlike previous rounds of purchase tax relief policies, the current automobile trade-in rules mainly targets the potential replacement needs of long-time users. The market is generally concerned about how many eligible models are in stock. We believe that in addition to this, the conversion rate of subsidies to new car purchases will also increase significantly, and the final driving effect may exceed expectations. We estimate that the demand for new car purchases is expected to reach 2.58 million vehicles.
Electric vehicle related companies:
BYD (01211), Ideal Automobile-W (02015), Xiaopeng Automobile-W (09868), NIO (09866), GAC Group (02238), Great Wall Motor (02333), Geely (00175), etc.