China's government work report says to steadily increase auto consumption

China will steadily increase auto consumption and remove unreasonable restrictions on used car trading, according to the government work report delivered to the delegates of the National People's Congress as part of the annual "two sessions" for their review and approval.

China will increase the number of parking lots, charging piles, battery swap stations, and other facilities, and build a power battery recycling system, the report said.

The report proposes measures and targets for auto consumption, rural consumption, and investment in new urbanization construction, so these are likely to be the key policy support directions in 2021, Guosen Securities said.

According to data recently published on the website of the National Bureau of Statistics, China's private car ownership was 243.93 million units by the end of 2020, an increase of 17.58 million units from 2019.

China's new energy vehicle production will be 1.456 million units in 2020, an increase of 17.3% over the previous year.

Many local governments have also introduced policies to promote auto consumption and given policies such as subsidies for car purchases and increased license plate resources.

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