Energy-saving automobile subsidy

　　Sohu Auto reports, among the listed companies, SAIC Motor takes the first place of energy saving. There are 25 units of automotives from the subordinated brands of SAIC Motor, including Shanghai GM, Shanghai Volkswagen, SGMW, to be nominated. The study of China Merchants Securities estimates that the growth rate of the overall auto demand in the second quarter will slow down. Taking the effects into consideration that purchase tax preferential policy will be terminated by the end of the year plus the energy-saving subsidies, the demand for vehicle in the fourth quarter will rise again.

　　Yesterday, the first energy-saving automobiles are released. 71 units of auto models from 16 car enterprises are nominated, which will be subsidized for 3000 Yuan. Four listed companies of stock markets in Shanghai and Shenzhen will benefit from it. SAIC Motor becomes the largest beneficiary that total 25 units of car models from SAIC are entered the list of energy-saving automotives. The insider expects next year's subsidies for energy-saving vehicles will exceed far more than this year. With the process of the policy of energy-saving emission reduction, the consumer demand for energy-saving autos will be boosted to 400 billions by 2012.

　　In order to encourage consumers to use more energy-efficient and environment friendly automotive products, the authority has launched one new policy on 1th June, which aims to encourage the consumption of energy-saving, environmental friendly and low-emission automobiles. The passenger cars of gasoline and diesel, whose engine emission is under 1.6 Liter and even lower and gas consumption of overall performance is lower than the current standard by 20%, are listed in "Benefiting the People with Energy Saving Products Project", and also will be promoted nationwide. According to relevant regulations, the central government will provide subsidies of 3,000 yuan for each consumer who buys the energy-saving vehicles mentioned on the list and the subsidies will be paid to consumers by car manufacturers when selling cars. National Development and Reform Commission, Ministry of Industry and Information Technology and Ministry of Finance will review the rest of the auto models recently, and launch the second list of fuel-efficient cars as soon as possible

　　In the promotion list of energy-saving vehicles (passenger cars with engines smaller than 1.6 liter) from Benefiting the People with Energy Saving Products Project, 71 auto models from 16 companies, including Jianghuai Auto (JAC), ChangAn Auto, Chery Auto, Shanghai GM, Shanghai Volkswagen, and SGMW are on the first list. The list shows the listed enterprises include JAC, ChangAn Auto, Yueda Investment, and SAIC affected by stock markets in Shanghai and Shenzhen. There are eight models from JAC nominated, six models from ChangAn Auto, 25 models from SAIC and its joint venture's brands, six models from Dongfeng Yueda Kia.

　　It is worth to mention that Shanghai GM has the most listed auto models as a single nominated enterprise up to 12. Insiders say that the approval from National Development and Reform Commission and other departments shows that Shanghai GM has a leading performance of energy saving and has completely taken off the title of oil tiger. General Manager of Shanghai GM Ding Lei regards it as layout in advance. "Since 2008, Shanghai GM has invested about 1.1 billion Dollars to optimize the powertrain. The current oil consumption and carbon emission have decreased by between eight and thirteen percent. The average power per litre has rise by approximately 10%." Auto industry forecasts, with the increase of subsidies for energy-saving automobiles, more and more car companies will follow the step of Shanghai GM in the future to put more effort on the development and research of energy-saving automotives.

　　Among the listed enterprises, SAIC Motor takes the first place of energy saving. 25 units of auto models from the subsidiary SAIC's brands, including Shanghai GM, Shanghai Volkswagen and SGMW are nominated. In addition, auto models from ChangAn Auto, JAC and Yueda Investment are at the top of the nominated vehicles, which are 25 units, 8 units, 8 units and 6 units. The executive from JAC said:"For the model of Tongyue with the price between 52,800 to 63,800 Yuan, the subsidy of 3000 Yuan will significantly boost the sales".

　　Some experts express, viewing from the influence of preferential policies since last year for market segmentation of nearly 70% market shares of passenger cars, potential consumers to purchase vehicles in this field are very sensitive to state subsidies. This subsidy policy for energy-saving vehicles will surely bring this market a large impact. The research report from China Merchants Securities predicts the growth rate of total automobile's demand will reduce in the second quarter this year. Considering the influences that the preferential policy of purchase tax will terminate by the end of this year plus energy-saving subsidies, the vehicle's demand will increase in the fourth quarter.

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100703/n273253325.shtml

　　(Jianfei Keke)