Many places will advance the national six standard car companies to digest inventory pressure on July 1

Currently, 16 regions have announced that they will implement the National VI Phase B emission standards ahead of schedule on July 1.
Chinese auto companies have begun to readjust their product development plans and actively respond to the early switch of emission standards.
However, as passenger car sales in these regions have accounted for half of the country’s total sales, the scope is much larger than expected.
Self-owned brand car companies are adopting measures such as price cuts and promotion, and promotion of obsolete vehicles to renew their obsolete vehicles.
"Track" switching-starting from July 1, in accordance with the requirements of the "Three-year Action Plan for Winning the Blue Sky Defense", key areas (Beijing-Tianjin-Hebei and surrounding areas, Yangtze River Delta, Fenwei Plain), Pearl River Delta, The Chengdu-Chongqing region will implement the National Sixth Emission Standard in advance and promote the use of fuel vehicles that meet the National Sixth Emission Standard.
Since many regions only announced this decision in 2019, it is now less than one month before the implementation of the new standard, and many car companies were caught off guard.
For a time, price cuts became the main tone of the auto market.
"Comprehensively judged, if there is no strong promotion policy support, in areas where the National VI standard is implemented in advance, it will be difficult to fully digest the National V vehicle inventory before July 1.
" Ye Shengji, deputy secretary general of the China Association of Automobile Manufacturers, said in an interview with a reporter from the Economic Daily.
Localities can accelerate the promotion of obsolete and renewal of old vehicles, and give a sufficient transition period for the National V models.
Standard implementation ahead of scheduleAccording to the China Association of Automobile Manufacturers, the National VI emission standards for light vehicles were officially released in December 2016.
According to the plan, the National VI standard should be implemented in phases from July 1, 2020, that is, the National VI a standard will be implemented in July 2020, and the National VI b standard will be implemented in July 2023.
At present, 16 regions have announced the early implementation of the National VI B standard.
Among them, some provinces and cities still have not clarified the specific content such as the implementation of the model and the implementation stage.
Judging from the compulsory insurance data of passenger car traffic in the past two years, passenger car sales in these regions have accounted for half of the country's total sales, and the scope is beyond the expectations of automakers.
"The automobile industry firmly supports the national air pollution control policies.
" Ye Shengji said that after the "Three-year Action Plan for Winning the Blue Sky Defense" put forward the requirements for early implementation of the National VI emission standards, auto companies began to readjust their product development plans.
Actively respond to early switching of standards.
Ye Shengji said that the regions that announced the early implementation of the National VI emission standards, such as Hebei, Henan, Shandong, and Shanxi, have covered the entire province, expanding the areas where the "Blue Sky Defense" is implemented in advance.
From an industrial perspective, the early implementation of the National VI emission standards will indeed cause tight supply in the product and supporting supply chain in the short term, and bring certain hidden dangers to industrial safety.
In addition, the Ministry of Ecology and Environment estimates that the cost of upgrading a light gasoline vehicle from the National V standard to the National VI standard is about 1,200 yuan.
This is also a big burden for car companies whose bicycle profits have declined overall since last year.
Auto companies digested inventory pressures soaring.
Since 2019, the passenger car market has continued its downward trend since last year.
The reduction in the value-added tax in April has affected the pace of dealers entering cars, consumers have more expectations for market promotion policies, and the early implementation of the National Sixth Standards have further intensified consumers' wait-and-see sentiment.
  Ye Shengji said that the superposition of multiple factors has exceeded industry expectations, causing a significant slowdown in demand for automobiles, an increase in the inventory backlog of national five models, and a decline in corporate efficiency.
  As of April 2019, the sales ratio of passenger garages in my country was as high as 3.
1, much higher than the industry’s 1.
5 warning line; the industry’s overall inventory was about 4.
5 million, and the national five vehicle inventory was about 3.
2 million.
  "Since April, the industry has accelerated the pace of destocking.
Companies and distributors have sharply cut prices to stimulate the market, with a view to speeding up the digestion of inventories before July 1.
" Ye Shengji said.
  The data shows that from January to April, the main economic indicators of 17 key automobile industry enterprises (groups) fell across the board.
The total profits and total profits and taxes of automobile enterprises fell by 20.
5% and 20% year-on-year respectively.
Compared with the data from January to March, The decline was expanded by 3.
8 and 4.
1 percentage points respectively.
In terms of output, in accordance with the relevant requirements of the "Blue Sky Defense" to implement the National Sixth Standard in advance, most automobile manufacturers concentrated on implementing the switch between National V and National VI models from April to June.
  According to data from the China Automotive Technology Research Center, the industry's production rhythm in April has shown obvious signs of "reducing the production of national five models and increasing the proportion of national six models", but it has not yet achieved rapid switching (affected by factors such as parts supply and production preparation) , In April, the output of the National V models was still close to 50%.
It is estimated that in May, the proportion of national V vehicle production in some companies is still high, and mainstream manufacturers have completed the switchover work in areas where the national VI standards have been implemented in advance or postponed to June.
  Ye Shengji said that from the production situation of key enterprises in April, compared with independent brand car companies, mainstream joint ventures have more technical reserves in the National VI, and the production of National VI products is relatively fast, especially luxury brands have fully realized the national VI model switching.
The output of most joint ventures in China’s National V models dropped to about 40% in April; the switching pace of national V models of independent brands was relatively slow, and many companies were still actively putting into production in April, accounting for more than 65% of China’s V models.
It is expected that they will not be able to do so in the short term.
Fully realize the supply of products in areas where the National Sixth Standard is implemented in advance.
Promoting obsolete vehicle scrapping and renewal   puts pressure on the auto industry.
Ye Shengji believes that it should start with encouraging the elimination of vehicles with outdated emission standards and granting a sufficient transition period for National V models.
  "It is recommended to encourage the elimination of vehicles with backward emission standards.
In areas where the National Sixth Standard is implemented in advance, the scrapped vehicles and purchases of National Five vehicles and the purchase of National Five vehicles are allowed to be sold and registered.
The time limit is up to the national six emission standards implemented in the country.
Date (July 1, 2020).
" Ye Shengji said that from the perspective of controlling the total amount of pollutants and improving the overall environmental protection governance effect, we encourage the elimination of vehicles with outdated emission standards, and promote the scrapping and renewal of old vehicles of the second country and below, and Efforts will be made to solve the inventory backlog of National V vehicle models in areas where the National VI standard is implemented in advance.
  Local inspection agencies can strengthen law enforcement inspections on the emissions of old cars, and promote the elimination of vehicles with excessive emissions.
At the same time, awards and supplementary support will be given to the scrapped and updated vehicles of National 2 and below to National 5 and National 6 emission vehicles.
  At present, vehicle sales in key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta account for nearly 70% of total sales.
Due to the superposition of multiple factors, the decline in automobile consumption has exceeded industry expectations, and most companies have a serious inventory backlog of National V models.
  In addition, Ye Shengji also suggested that in areas where the National Sixth Standard is implemented in advance, local governments can provide a sufficient transition period based on the inventory of National Five vehicles in the region; at the same time, it is clear that the scrapping policy for National Five models remains unchanged to avoid consumer confidence.
Affected to ensure market stability and allow enterprises to smoothly pass the switching period.