Truck industry to welcome the double policy favorable. First, on July 25, the National Development and Reform Commission and the Ministry of Finance jointly issued the "Several Measures on Strengthening support for large-scale equipment renewal and the replacement of old consumer goods with new ones", which will use about 300 billion yuan of ultra-long-term special Treasury bond funds to strengthen support for large-scale equipment renewal and the replacement of old consumer goods with new ones. It is clearly proposed that it supports the scrapping of diesel trucks with emission standards of national III and below, and speeds up the updating of them into low-emission trucks. Scrap and renew qualified trucks, with an average subsidy of 80,000 yuan per vehicle; No scrapping, only renewal and purchase of qualified trucks, with an average subsidy of 35,000 yuan per vehicle; Only old operating diesel trucks are scrapped in advance, with an average subsidy of 30,000 yuan per vehicle. Subsequently, on July 31, the Ministry of Transport and the Ministry of Finance jointly issued the Notice on the Implementation of the Scrapping and Updating of Old Operating Trucks, further refining the subsidy policy for scrapping and updating and purchasing new energy or national six standard trucks, and clarifying that new energy heavy trucks can obtain a subsidy of up to 140,000 yuan (including scrap subsidies of 45,000 yuan and new purchase subsidies of 95,000 yuan). The national six heavy card can enjoy a maximum subsidy of 110,000 yuan (including scrap subsidy of 45,000 yuan and new purchase subsidy of 65,000 yuan). The introduction of these two policies undoubtedly injected a strong impetus to boost the demand for the truck market, and also indicates that the industry is about to usher in a new round of development climax.

 

Subsidy policies stimulate market vitality

 

"For the truck industry, the release and implementation of the two support policies is undoubtedly a major positive. It will not only lead the transformation and upgrading of China's transportation industry, but also bring new development opportunities for the truck industry." Zhong Weiping, secretary-general of the commercial Vehicle Committee of the China Automobile Dealers Association, said the subsidy policy aims to accelerate the elimination process of old vehicles through economic incentives and promote the popularity of low-emission trucks. This move has injected a shot in the arm into the truck industry, which is expected to further stimulate market vitality and boost industry confidence.

 

Liu Dacheng, vice president of the Internet Industry Research Institute of Tsinghua University and director of the logistics industry Research Center, analyzed that the subsidy policy takes the elimination and renewal of old vehicles and electric substitution as a breakthrough, and promotes the development of the truck industry to the green and low-carbon direction, which is conducive to enhancing the competitiveness and sustainable development of the industry. At the same time, the promotion and application of new energy operation trucks will drive the development of related industrial chains, including the production and sales of core components such as batteries, motors, and electronic controls, as well as the construction and operation of charging facilities, which will bring new growth points to the commercial vehicle industry.

 

Yang Jinguo, deputy general manager of Zhongqi Brothers and founder of Zhongqi Truck Brothers Club, said that old diesel trucks often have problems such as low transportation efficiency, high failure rate and safety hazards due to backward technology and aging equipment. By eliminating these vehicles and replacing them with better performance and more technologically advanced low-emission trucks, road transport efficiency and safety will be significantly improved.

 

Cui Dongshu, secretary general of the Passenger Car Market Information Joint Branch of the China Automobile Circulation Association, pointed out that the substantial increase in the amount of subsidies for the elimination of automobiles can not only alleviate the difficulties faced by the market due to excessive "price war", but also stimulate the internal power of the market by encouraging the replacement of old vehicles, and promote the development of the entire industry in a more healthy and orderly direction.
In addition, the release of subsidy policies will also bring a win-win situation. For transport workers, there are real subsidies; For truck manufacturers, they will usher in new market demand growth points, and then promote product upgrades and technological innovation; For the truck industry, the promotion of low-emission models is an important embodiment of accelerating the transformation of the energy structure, promoting the upgrading of the commercial vehicle industry, and achieving high-quality development of the industry.

 

We will further unleash market demand

 

Since The State Council issued the "Action Plan for Promoting large-scale equipment Renewal and replacing old consumer goods with new ones", many provinces have responded positively and introduced policy rules to promote the upgrading of transportation equipment. The policy has been deepened again, not only to effectively connect and complement the policies, but also to further clarify the direction of the replacement of transportation equipment, and provide strong policy guidance for the sustainable development of the industry.

 

"In the short term, the release of favorable policies will further boost truck market demand." Ren Shifa, an expert in the commercial vehicle industry, said that the high subsidies will attract a large number of transport workers to scrap old vehicles in advance and buy new or new energy vehicles, thereby promoting the growth of the truck market. Especially in the current market environment dominated by stock replacement demand, accelerating the elimination of old vehicles, or the biggest driver of new additions in the commercial vehicle market.

 

"Indeed, from the perspective of market sales, the subsidy policy is expected to rapidly increase truck sales." For those transport companies and car owners who were hesitant due to financial pressure, high subsidies will become a key factor in their determination to replace old vehicles. For those who use national III and below emission standard diesel trucks, upgrading vehicles not only means that they can enjoy the policy dividend, but also improve transportation efficiency and reduce operating costs." Yang further said.
In the interview, a number of industry insiders believe that the release of the two support policies will activate the potential of the elimination of old vehicles and new car replacement. The person in charge of a number of mainstream truck companies also said that the subsidy policy will gradually leverage the new growth point of the truck market. On the one hand, accelerating the elimination of old diesel trucks will release huge market potential and provide broad space for new car sales; On the other hand, the transformation of operating trucks to electrification can not only promote the upgrading of consumption structure, but also inject new vitality into the technological development of truck enterprises.

 

According to the data provided by the Beidou System, as of now, the national triple card has about 440,000 vehicles, including 102,600 tractors, 160,000 trucks, 96,000 dump trucks, 51,000 special vehicles, and 29,000 mixing trucks. The industry generally expects that under the catalysis of a number of favorable policies, national diesel vehicles are expected to usher in the peak of elimination this year and next year, bringing new growth drivers to the truck market.

 

In addition, the reporter learned during the visit that many truck manufacturers have begun to actively adjust their production plans and increase production efforts to meet the potential demand of the market. At the same time, dealers are also intensively preparing promotional activities, and strive to provide consumers with more convenient car purchase services.

 

"The recent introduction of a series of supporting policies is a major positive for dealers, and we have quickly adjusted our sales strategy to increase the promotion of new energy trucks and national six standard trucks." At the same time, we are also actively communicating with manufacturers to strive for more resources to cope with the possible surge in market demand." Beijing heavy truck dealer Liu Zhiwen said.

 

However, in the face of the opportunities brought by the policy, dealers are not without concern. Henan heavy truck dealer Zhang Qiang bluntly: "The implementation effect of the policy still needs time to test, and there is also a certain uncertainty in the market response." "We are concerned that some customers may be hesitant because they do not understand the policy thoroughly or lack of funds."

 

Multi-pronged efforts to promote the healthy development of the industry

 

Although the two policies have brought major benefits to the truck industry, in order to truly achieve the healthy and sustainable development of the industry, supporting measures need to continue to follow up and improve.

 

"The top priority is to establish and improve the vehicle scrapping supervision system and intensify the investigation and punishment of violations." Yang Jinguo said that through information means to achieve the whole process of vehicle scrapping supervision to ensure that scrapped vehicles are properly handled. At the same time, it is necessary to strengthen the management of scrapped vehicle dismantling enterprises, standardize the dismantling behavior, and improve the dismantling efficiency. In addition, the relevant government departments need to strengthen the supervision of diesel trucks in operation to ensure that old high-emission vehicles are withdrawn from the market according to law.

 

In Zhong's view, optimizing the vehicle renewal process and financial services are also key. He proposed that in the process of eliminating and updating old vehicles, it is necessary to provide convenient vehicle renewal paths for transport enterprises and owners, simplify vehicle renewal procedures, shorten the approval time, and reduce renewal costs. At the same time, car companies and dealers should also strengthen cooperation with financial institutions to provide convenient loan and insurance services for car owners.

 

In addition, the establishment of a reasonable tariff mechanism is also a crucial part. "In view of the current situation of the market with more cars and less goods and low freight rates, the relevant government departments should further strengthen the monitoring of the road freight market, timely guide and reasonable regulation of market transport capacity, and achieve the basic balance of supply and demand; Actively guide the market's freight rate expectations, establish a reasonable freight rate mechanism, promote the formation of a reasonable interest chain between cargo owners, logistics enterprises, platform enterprises, and truck drivers, and effectively maintain the healthy and stable development of the road freight industry. Only in this way can support policies be effective." Yang Jinguo finally said.

 

China Automotive News, August 6, 2024