"Old-for-used" subsidy policy to start the auto parts market to pick up

On August 26, 2013, the Ministry of Finance and the National Development and Reform Commission and other five departments issued notices. In 2013, pilot projects were conducted on remanufactured products such as automotive engines and transmissions , and one-time subsidies were paid to buyers of remanufactured products for “ old-for-new ” remanufactured products. After the start of the policy, the auto parts market picked up, and in addition to the above policy subsidized auto parts sales, auto parts such as the steering wheel also rose.

According to the statistical data of the steering wheel portal, since the beginning of August, the turnover rate of the auto parts market, such as the steering wheel, has increased by 15%, but it is worth noting that the sales volume of auto parts online platform is much higher than that of the offline market. Taking Hebei Yutian County Lianhe Automotive Components Manufacturing Co., Ltd. as an example, the company sold only about 40% of the total sales volume of the steering wheel in the middle of this year in August, and the remaining 60% were completed through the steering wheel portal.

It is reported that after the “old-for-for-new” subsidy policy was initiated across the country, the 4S stores’ auto parts purchases have been greatly increased due to the increase in market demand, but most 4S stores have chosen to purchase on e-commerce platforms. Auto parts products, the supply chain of the traditional front-line market is gradually broken, and the domestic first auto parts e-commerce information platform—the steering wheel has become the major trading platform for the majority of purchasers.

Li Lianhe, an expert in the auto parts industry, analyzes that the recovery of auto parts market is limited to the online market, because with the increasingly prominent role of the steering wheel e-commerce platform, both auto parts suppliers or purchasers choose to trade on this platform, the online market The degree of activity has far exceeded the offline market.

“For auto parts suppliers, the e-commerce platform on the steering wheel can quickly promote their own products and achieve cross-regional sales, without geographical restrictions, and greatly expand the market, and for auto parts buyers, The platform can filter inexpensive products, saving a lot of time and costs." Li Lianhe explained.

However, Li Lianhe experts also said that although the online market for auto parts has picked up quickly, it does not mean that the offline market will continue to be deserted. Therefore, auto parts suppliers must also pay attention to the offline market while laying out the e-commerce market. The development of the market, because the transaction of auto parts and physical products can only be completed through offline transactions.

Judging from the current market for auto parts and components, the start-up of the "old-for-for-new" subsidy policy drove the market to pick up, but with the gradual increase in the number of owners benefiting from the policy, the gradual increase in the coverage area and the implementation of specific subsidy measures, The auto parts market will continue to heat up, which is undoubtedly the most welcome development trend for many auto parts suppliers.

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