Chapter 29
President Li's Attention
Li Shanhe took the document, which was titled "Development and Planning of New Energy Vehicles". He wasn't too surprised by the title. The country has been showing interest in supporting new energy vehicle projects in the past two years, and it's not hard to find that if you pay attention.
Last year, the country sent positive signals regarding the development of new energy vehicles.
The General Office of the State Council issued the "Guiding Opinions on Accelerating the Construction of Electric Vehicle Charging Infrastructure," which provided a clear direction for the layout and construction of charging piles and promoted the rapid development of the charging and swapping industry.
The Ministry of Finance, the Ministry of Industry and Information Technology, and other departments have clarified preferential policies for vehicle and vessel tax on energy-saving and new energy vehicles and vessels, encouraging consumers to purchase new energy vehicles.
Furthermore, the policy of exempting new energy vehicles from purchase tax was implemented in 2014 and continued in 2015, further reducing the cost of purchasing vehicles for consumers.
However, the new energy vehicle sector is still in the exploration and experimentation stage. In short, everyone is feeling their way across the river. No one knows whether the new energy vehicle sector will work or how far it can go.
However, regardless of whether the report is practical or appropriate for the development and planning of new energy vehicles, the person who wrote it has already surpassed many others in terms of their keen awareness of national policies and their ability to keep up with the leadership.
At first, Li Shanhe didn't take it too seriously. He thought that out of respect for Secretary Zhou, he would just take a look and offer some suggestions, which would be considered as helping a junior.
As a result, the very first sentence piqued Li Shanhe's interest.
Cars have become a common household item, and the people have long suffered from their dependence on them!
Next, the report mentioned car sales data in recent years, from imported cars to joint venture cars, and then to domestic cars. The huge difference in sales volume forced Li Shanhe, the helmsman, to take it seriously.
To put it simply, in last year's sales ranking of Chinese car brands, the top five were all foreign car companies: Volkswagen, Hyundai, Toyota, Buick, and Honda.
In terms of sales share, the top three car companies are SAIC Motor, Dongfeng Motor, and FAW Group. Without exception, all three groups have joint venture vehicles as their top sellers.
SAIC Volkswagen mainly produces joint venture brands such as SAIC Volkswagen, Shanghai GM, and Shanghai GM Wuling.
Dongfeng Motor Group mainly produces joint venture brands such as Dongfeng Nissan, Dongfeng Honda, Dongfeng Citroën, and Dongfeng Peugeot.
FAW Group mainly produces joint venture brands such as FAW-Volkswagen, FAW-Audi, FAW-Mazda, and FAW-Toyota.
Looking at the report in his hand, Li Shanhe unconsciously frowned. In fact, he knew the sales data very well, and no one knew the current situation of the country better than him.
But every time Li Shanhe saw this data comparison, he was still shocked and couldn't calm down for a long time.
Continuing on, the report also provides examples of various irregularities in different regions, such as having to queue up or even pay extra to buy imported or joint-venture cars, while domestically produced cars are ignored due to quality issues.
Compared to imported and joint venture cars, domestically produced cars are ignored while imported and joint venture cars are purchased at inflated prices. This stark contrast displeased Li Shanhe, who couldn't understand what the person who wrote the report was trying to express.
Next, the report shifted its focus, echoing the beginning: How do foreign automakers refer to our people? They call them leeks, they call them suckers, selling their discarded technologies and automobiles to our country at exorbitant prices!
Therefore, as cars gradually transform from luxury goods to necessities, my country's automotive industry must reform itself and cannot continue to be held hostage by foreign countries.
We cannot allow foreign companies to make money off our people while arrogantly mocking us!
However, gasoline-powered vehicles have been developed abroad for many years. Technological barriers and patent protection have forced my country to accept those unfair and unfair terms in order to develop and progress its gasoline-powered vehicles.
High patent fees and expensive imported components!
Gasoline-powered vehicles won't work; we must find a new way!
New energy vehicle projects are just beginning in countries around the world, and this is my country's only chance to overtake others. my country must implement new policies.
First: Carbon credits will be accumulated from the sale of new energy vehicles. These carbon credits can be redeemed for national subsidies, but the specific redemption policy is yet to be determined.
Secondly, the National Academy of Sciences will personally participate in the research and development of new energy batteries, new energy motors, and a full range of supporting facilities, thus using the state to support enterprises and promote their rapid development.
"hiss……"
Upon seeing the carbon credits and the concept of state-owned enterprises supporting businesses, Li Shanhe finally took it seriously. He adjusted his glasses and looked down with a solemn expression.
What followed shocked Li Shanhe even more, because the report proposed that not only should the purchase tax be reduced or exempted for purchasing new energy vehicles, but the vehicle and vessel tax should also be completely waived, with zero payment required.
The report writer also pointed out that although cars are necessities, they are not fast-moving consumer goods. What should be done for families who have already bought cars?
He then came up with another ingenious idea: the government should take the initiative to introduce policies to increase the enthusiasm of the people to purchase new energy vehicles!
Two brilliant policies were subsequently proposed:
Trade in your old car for a new one and receive a trade-in subsidy!
Scrapping your old car comes with a government subsidy!
The proposal suggests that if people sell their old cars within the specified period and replace them with new energy vehicles, the government will provide a subsidy of 10,000 to 15,000 yuan.
If a car that has reached its scrap age applies for scrapping and a new energy vehicle is purchased, the government will provide a scrapping subsidy of 20,000 yuan.
Upon seeing this, even Li Shanhe, with his composed nature, couldn't help but marvel. The two national policies mentioned in the report were truly insightful and would make those who already owned cars tempted to buy one.
First, carbon credits were used to incentivize companies manufacturing new energy vehicles. Then, various policies were introduced to encourage people to buy cars. It can be said that this report has woven a large net, encompassing everything from production to sales, and from car companies to the general public.
Li Shanhe could even foresee that once the carbon credit policy was introduced, all state-owned enterprises would rush to research and sell new energy vehicles, and with replacement subsidies and scrapping subsidies, there would be no fear of not being able to sell new energy vehicles.
Therefore, in theory, the new energy vehicle project has achieved a sustainable development path...!
Inside the conference room, a group of bigwigs watched as President Li stared intently at the documents, his expression growing increasingly serious. They exchanged glances, their eyes filled with curiosity.
Given Mr. Li's knowledge, what exactly was written in this report that would make him take it so seriously?
Of those present, only Zhou Qingguo truly empathized with President Li. He still remembered the shock he felt when he finished reading the report. He had only briefly listened to Gao Yuliang's oral presentation and thought it might work, but it was only a possibility.
However, Gao Yuliang's report, with its application of various national policies and its grasp of the psychology of car companies and the people, can be described as perfect.
Even the details in the report were handled very well. It felt as if... the content of the report was not speculation or suggestions at all, but a practical solution that had been tested and proven to be feasible!
That's how things came to this day. Zhou Qingguo personally handed the report to President Li and, in front of all the Standing Committee members, personally acknowledged that Gao Yuliang was his junior!
More than half an hour later, General Manager Li slowly raised his head, his deep gaze fixed on Zhou Qingguo. "Qingguo, who wrote this report? Was it written by a public official?"