Policies on expending consumption of new energy vehicles have become important tools to boost consumption in China, reported Securities Daily on Friday.
The Chinese government has proposed favorable policies to continue to exempt purchase tax for new energy vehicles and to launch pilot zones in cities for vehicle electrification in a note co-released on Nov 21 by the Ministry of Industry and Information Technology, National Development and Reform Commission, State-owned Assets Supervision and Administration Commission of the State Council.
In addition to the policies by central government bodies, local governments have also put forward consumption stimulation policies covering new energy vehicle purchasing including Fuzhou, East China's Fujian province on Nov 17; Southwest China's Guizhou province on Nov 22; North China's Tianjin on Nov 15; and Southwest China' s Sichuan province on Nov 17.
The automobile sector is the key field to stabilize economic growth and boost consumption, Guo Yiming, investment director of Jufeng Investment Information, said. The rapid growth in auto consumption is closed related to the supportive policies on new energy vehicles such as the exemption of purchase tax. Impacted by multiple factors, a sustained recovery in consumer demand is still to come. Expanding the consumption on automobiles will contribute to the recovery.
A series of policies to improve the consumption environment and expedite the construction of charging stations and piles for new energy cars will drive industrial consumption, resident consumption and societal consumption in order to achieve the same frequency resonance effect for investment and consumption, said Zhang Yiqun, a scholar from the Society of Public Finance of China.