NPC & CPPCC: eye-catching low-carbon

　　According to Xiaoxiang Morning Edition, in terms of auto industry, how to overcome the financial crisis is the keyword in NPC& CPPCC last year. As Chinese auto industry has gained drastic promotion and Chinese auto market has become the NO.1 worldwide, this year low-carbon and quality become keywords in NPC& CPPCC. How to transfer China from a large auto manufacturing nation to a powerful one is a pressing matter of the moment.

　　Even Premier Wen Jiabao's government work report has mentioned issues related to the auto industry 23 times. Automobile has undoubtedly become a hot topic.

　　The proposal of Geely CEO Li Shufu claimed since a historical progress that China is transforming from “bicycle community” to “car society” has been irreversibly achieved, all aspects of preparations should be well made.

　　Key word: low carbon

　　Low-carbon is undoubtedly so a hot topic this year that a number of members from the automobile industry propose to encourage the development of small displacement cars and building a low-carbon auto society. Maybe the angles are different, but all rivers run into the sea. Zeng Qinghong, general manager of Guangzhou Automobile Group made a recommendation that the government should adopt more effective measures to promote the development of small cars and micro-cars, including to remove consumption tax of low-emission passenger cars, to adjust consumption tax rate of middle-emission and high-emission cars, to increase grades and grade differentials of vehicle and vessel tax, reflecting the characteristics of property taxes and to promote the consumption tax rate of per liter gasoline and diesel since oil prices in neighboring regions and countries are al higher than those in China.

　　In her proposal o to build a low-carbon auto society and increase support for high-quality energy-saving environment-friendly vehicles with low emissions, Great Wall Motor corporation president Wang Fengying expressed that to develop low-carbon economy and increase support of high-quality energy-saving environment-friendly vehicles with low emissions is the best way to practice low-carbon model within global auto industry. Wang Fengying suggested the Government intensify the supportive policy efforts and adopt a more lasting and effective preferential policies for low-emission cars, including the links of manufacturing, consumption, the State Department procurement and other related aspects to push the development of high-quality energy-saving environment-friendly small cars as well as to win the controlling right of in the new round of global competition.

　　Expecting around 2012 a climax of industrialization of international pure electric vehicles will come, Yin Jiaxu, vice-chairman of Changan Auto Group proposed to accelerate industrialization of pure electric vehicles. Consequently, China should advance the industrial development of pure electric vehicles through policy guidance and financial support. For example, the government should encourage auto manufacturers to drive spare parts suppliers and provide preferential policies in consumption tax, acquisition tax, parking concessions in the early stage.

　　Keyword: Automotive Quality

　　Recently the famous the global large-scale recalls of Toyota cars aroused a high degree of concerns of representatives.

　　Zuo Yan’an, JAC Group Chairman proposed to introduce automotive liability insurance. Products liability insurance refers to harmfulness caused by quality defects of products should result in liability to pay compensation. Both consumers and auto manufacturers need this automotive liability insurance. Since at present China lack this kind of automotive liability insurance, Zuo Yan’an proposed the government to publish specific implementation plan. Maybe the premiums and its rates should be determined by the risk attributes, the required liability limits, export regions, annual sales and other factors. The vehicles exported, especially the ones to the North American should be charged a higher premium rate. The government can give the companies providing and purchasing automotive liability insurance appropriate policy incentives such as financial subsidies and tax breaks.

　　Zeng Qinghong, general manager of the Guangzhou Automobile Group, advised to add automobile insurance-related content to the recall system. 2010 is the seventh year since implementation of auto recall system in China. According to the statistics from “recalled communiqué” in the website set specifically for the auto recall management by AQSIQ Defective Product Management Center, there have been about 210 recalls from 2004 June 18 to 2009 December 31.That is to say, both Vehicle and parts manufacturers are confronted with great risk of vehicle recalls and risk management is eagerly in demand. In fact, the defects of automotive products have much to do with the public safety. The risk of vehicle recalls is insurable risks. The gradual promotion of vehicle recall insurance, which features a practical viability from foreign experiences, can lead to a win-win situation.

　　Key word: merger and reorganization

　　Since the introduction of last year’s National Automotive Industry Revitalization Planning, there has continuously come the news of mergers and reorganization. Merger and reorganization has certainly become a hot topic. Last year, when Guangzhou Automobile Group purchased shares of Changfeng, Zeng Qinghong said this year there would be further action. Automobile industry planning of Anhui province has also aroused many speculations about the reorganization of Chery and JAC. Merger and reorganization may form a new structure of Chinese auto industry.

　　Yin Jiaxu, vice chairman of Changan Auto Group proposed the government to provide policy support to merger and reorganization of auto companies. To his view, since merger and reorganization is a unavoidable stage during the development of Chinese auto industry, the government should publish views on automotive industry merger and reorganization promotion as soon as possible to encourage the merger and reorganization among auto corporations and rule related implementation details. He suggested that employees of the reorganized companies be viewed as the “transferred state-owned enterprise employee”; and operating incomes within the first five years after reorganized given preferential policies of “two exemptions and three reductions”.

　　Key word: to develop local brands

　　In recent years, the development of China’s domestic auto brands has always been a hot topic of NPC& CPPCC. Last year, China topped the throne of the world’s largest auto market, with a sales volume of 13.6 million units. Besides, the self-owned brands are developing quite so fast that this year’s production and marketing planning are confidently determined by a very high growth rate.

　　In the proposal of Wang Fengying, Great Wall Motor CEO national auto brands development strategy planning, “Chinese automobile” is clearly defined.

　　Wang believed that “Chinese automobile” should be featured by China’s self-owned brands, a certain proportion of independent intellectual property rights as well as advanced technologies. Besides, it should meet the national quality standards and satisfy demands of the domestic auto market or target export market. Wang recommended certification standards be built up and the self-owned brands reach the standards of certification system be provide with tax and credit preferences. In addition, relevant preferential policies should be enacted to encourage the consumers to purchase “Chinese automobile”.

　　Keyword: Automobile to countryside

　　In the year of 2009, benefiting from the national simulative policies, especially the automobile to countryside policy, the mini-car gained rather rapidly growth.

　　The proposal of Zeng Qinghong, general manager of Guangzhou Automobile Group, suggested that automobile to the countryside policy be implemented permanently. To his viewpoint, firstly, to the state this policy has expanded automobile consumption, stimulated the domestic demand and promoted relevant industries with no reduction of financial incomes and taxes while secondly, to auto manufacturers it has boosted the sales and increased economic benefits, and finally has not only given the farmers some practical benefits but also pushed consumption of cars, a modern means of transportation, to China’s poorest farmer class, which can speed up the poverty alleviation.

　　As a result, it is advised that this policy which favors both the development of rural economy and structural adjustment of automotive products, to be taken as a long-term strategic measure of the Chinese government.

　　（Translator: Yalong/Jessie）

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100311/n270737101.shtml