China's Personal Consumption Loan Policy Boosts Car Sales with New Dynamics
The National Press Office of the State Council held a press conference on August 13, introducing the personal consumption loan policy and the service industry operating entity loan policy related information.
According to the "Implementation Plan for Personal Consumption Loan Financial Subsidy Policy" issued by the Ministry of Finance and other three departments jointly, the subsidy range includes single loans below 50,000 yuan for consumption, as well as single loans above 50,000 yuan for home-used automobiles, elderly care, and other key fields. At the same time, the Ministry of Finance and nine other departments also issued a joint plan for "Implementation Plan for Service Industry Operating Entity Loan Financial Subsidy Policy".
Passenger cars are the main objects of household automobile consumption. Since this year, China's passenger car consumption has tended to stabilize. Data from the Passenger Car Market Information Alliance (hereinafter referred to as the Alliance) shows that in July, nationwide passenger car sales reached 1.826 million units, with a growth rate of 6.3% over the same period last year; cumulative sales from January to July reached 12.728 million units, with a growth rate of 10.1%.
Alliance Secretary-General Cui Dongshu interviewed by DH Finance Reporters stated that the three departments' personal consumption loan financial subsidy policy through reducing residents' credit costs, activating consumer potential, and forming a coordinated economic stimulation mechanism, its core significance lies in:
One is to directly alleviate consumers' burden, with an annual interest rate of 1% and a maximum coverage of 3,000 yuan, effectively reducing the cost of car loans and boosting consumer willingness.
Two is through the "four-point" effect of financial funds, guiding financial resources to precisely support consumer upgrading, with an interest rate of 5% per single loan above 50,000 yuan, covering large-scale consumption needs.
Three is to strengthen inclusiveness, covering the middle class and flexible employment groups, relying on commercial banks, consumer finance companies, and other multi-institutional platforms to expand policy coverage.
Four is to form a combination with the service industry operating entity loan financial subsidy policy from the demand side, stimulating consumption, optimizing supply, and coordinating the expansion of domestic demand and economic circulation.
"This policy through marketization and legalization operation, not only stabilizes consumer expectations but also injects new dynamics into the high-quality development of car sales." Cui Dongshu said.
Editor: Tao Jiyan | Reviewer: Zhang Yipeng | Auditor: Li Zhen | Supervisor: Gudou