To consolidate the continued rebound in consumption, China’s Ministry of Commerce will work with other government departments to launch a series of consumption promotion efforts at the end of this year and early next year, said Gao Feng, a spokesman for the ministry, at a regular briefing on December 10.
He said that in promoting consumption, efforts will be made to promote the expansion of consumption of key products. For example, local governments will be encouraged to optimize auto purchase restriction measures, automakers will be encouraged to enter the rural market, and customers will be encouraged to do trade-ins.
He also mentioned that China will improve the recycling system of end-of-life cars, actively develop auto after-market such as auto maintenance, repair, insurance, and leasing, and optimize the circulation cycle of new cars, used cars, and end-of-life cars.
Commenting on this, China Galaxy Securities said that against the backdrop of China’s steady economic recovery, the introduction of policies such as encouraging cars to enter the rural market is conducive to the expected rise in Chinese passenger car retail sales in November-December.
They believe that the market share of the leading car companies will continue to rise, which is expected to form a strong support for valuation.
Minsheng Securities believes that China’s passenger car market is in a V-shaped recovery trend, and residents’ willingness to purchase cars will be further released in the future, and the strong growth trend of auto consumption is expected to continue.
They mentioned that China’s new energy vehicle segment is expected to explode under the expansion of new model supply, with the growth of consumer demand.
