The commercial vehicle market is still depressing.

In recent statements, the China Automobile Industry Association highlighted the challenges faced by commercial vehicle manufacturers due to a lack of strong policy support. The absence of clear market direction has made it difficult for companies to operate effectively. Many enterprises are calling for more favorable policies specifically tailored for the commercial vehicle sector. According to the association’s representative, the government should prioritize balanced industry development to ensure the successful implementation of the automobile industry’s adjustment and revitalization plan. Compared to passenger cars, commercial vehicles have not benefited from similar policy advantages such as reduced purchase tax or the “car to the countryside” initiative. As a result, while passenger car sales showed signs of recovery, commercial vehicle sales continued to decline. In addition to broader economic stimulus measures and improved macroeconomic conditions, commercial vehicle companies are urging the government to introduce targeted policies that support their growth and eliminate any unreasonable regulations that hinder their development. The hope is to help the industry overcome its current difficulties and enter a period of renewal and growth. Regarding trucks, several industry leaders have called for tax relief. Huang Gang, Party Secretary and Deputy General Manager of Dongfeng Commercial Vehicle Co., Ltd., proposed fully exempting commercial vehicles from purchase tax. He pointed out that the “car to the countryside” policy has significantly supported light trucks and micro-vans, but heavy trucks have been hit harder by the financial crisis. Reducing the purchase tax could lower user costs and boost demand. “If it's not possible to fully exempt, 50% would be acceptable,” he said, adding that a full exemption is the ideal goal. Guo Zhenlu, General Manager of Zhengzhou Nissan, also advocated for the removal of purchase tax on commercial vehicles. He emphasized that rural market vehicles are primarily used as tools for income generation, with commercial vehicles being the preferred choice. Removing the tax would reduce the cost of upgrading for farmers and support the “car to the countryside” initiative. This measure could also prevent the commercial vehicle industry from experiencing a severe downturn during the financial crisis. Interestingly, Li Daokui, a member of the National Committee of the Chinese People's Political Consultative Conference and a professor at Tsinghua University, proposed abolishing the car purchase tax altogether during the “two sessions.” He suggested shifting the tax burden to the usage stage. Under the context of boosting domestic demand, this move could significantly benefit the auto industry and stimulate consumption. For commercial vehicles, the impact on energy conservation and environmental protection would be even greater. On the passenger car side, there is an urgent need to reconsider the consumption tax. A representative from Yutong Bus stated that the government aimed to reform the consumption tax to adjust the automotive product structure, but this did not achieve the desired effect. The direct taxation on passenger cars under 7 meters has led to a shrinking market share. These vehicles are primarily used in suburban and rural transportation, where they play a crucial role. The representative urged the government to revise the policy to better align with the needs of the rural market. Changan Bus also reiterated the call for the removal of excise duties on medium and light buses. They emphasized that buses under 7 meters are the main models used in rural transport and serve the majority of farmers. It remains unclear why these vehicles are subject to consumption taxes. “When introducing new policies, the government should consider the purpose and whether it makes sense,” the representative added. The small plate passenger cars, though often overlooked, play a vital role in connecting rural areas with cities and facilitating inter-city travel. Their importance in mass transportation is no less than that of regular passenger cars. From this perspective, they deserve supportive policies.

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