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            "Motorcycle prohibition" hinders the transformation and upgrading of China's motorcycle industry

            "Motorcycle prohibition" hinders the transformation and upgrading of China's motorcycle industry

            • 分类:Industry News
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            • 来源:
            • 发布时间:2021-07-14 15:43
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            "Motorcycle prohibition" hinders the transformation and upgrading of China's motorcycle industry

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            • 分类:Industry News
            • 作者:
            • 来源:
            • 发布时间:2021-07-14 15:43
            • 访问量:
            detail
            The proposal to cancel the city's "ban on motorcycles" has attracted much attention from the motorcycle industry. At this year’s two sessions, Tu Jianhua, member of the National Committee of the Chinese People’s Political Consultative Conference, chairman of the Chongqing Federation of Industry and Commerce, and chairman of the board of directors of Loncin Holdings Co., Ltd., promoted "civil participation in the military" to form a new pattern of deep development of military-civilian integration in the motorcycle industry and renewable resources industry. Seven proposals were submitted for malicious registration of trademarks and optimization of the business environment. Among them, the "Proposal on Canceling the Purchase Tax on Motorcycles with Displacement Below 250CC and the Consumption Tax on Motorcycles with Displacement Above 250CC" and the "Proposal on Proposing the State to Promulgate the "Regulations on Access to Motorcycle City"" aroused strong responses from the society.
             
            Motorcycle consumption tax restricts the development and innovation of the entire industry
             
            According to Commissioner Tu Jianhua, at present, my country's motorcycle purchase tax is 10%, which is paid by consumers. The predecessor of the vehicle purchase tax was the vehicle purchase surcharge that was levied in 1985. The original intention of the tax was to be used as a special fund for highway construction.
             
            Motorcycle consumption tax is paid by the manufacturer. At present, motorcycles below 250CC are exempt from consumption tax, and motorcycles with 250CC and above are levied at 3% and 10% respectively. The original intention of the state to establish a consumption tax is to guide the consumption structure and reduce the gap between the rich and the poor. Therefore, the consumption tax is levied on large-displacement motorcycles as luxury goods.
            The main market for motorcycles below 250CC is in rural areas. According to relevant data, there has always been a huge gap between the number of motorcycle certificates uploaded and the number of licenses issued by the Ministry of Public Security. The reason is that a large number of motorcycle buyers in the rural market do not pay the purchase tax in order to save money, and do not follow the regulations on the motorcycles they purchase. Handling procedures for vehicle registration and insurance, resulting in a large number of "black motorcycles" on the road without a license.
             
            The main market for motorcycles above 250CC is in cities. Most of the prices are less than 40,000 yuan, and they are no longer considered luxury goods. The reason for collecting consumption tax in the past seems unreasonable today. At the same time, consumption tax restricts the development and innovation of the entire industry.
             
            How to guide the high-quality development of the motorcycle industry at the national level is of great practical significance to the adjustment of the purchase tax on motorcycles with displacement below 250CC and the consumption tax on motorcycles with displacement above 250CC.
             
            The biggest beneficiaries of the abolition of the motorcycle purchase tax are farmers and urban low-income groups
             
            Motorbikes have been banned and restricted on a large scale in many cities across the country. In actual use, the area of ??the road occupied by a motorcycle is much smaller than that of a car, and the actual right of way is much smaller than that of a car.
             
            From the perspective of industry development, due to the impact of automobiles and electric bicycles and the ban on motorcycles, the market of China's motorcycle industry has continued to decline in recent years, and corporate profits have been meager and the situation is severe. Tu Jianhua believes that in the critical period of transformation and upgrading, if the motorcycle consumption tax is reduced or exempted, it will help enterprises to increase the development of mid-to-high-end motorcycle demand.
             
            The abolition of the motorcycle purchase tax, the biggest beneficiaries are farmers and urban low-income groups, which is a tangible measure to reduce the burden of low-income people and improve the living standards of low-income people.
             
            In addition, Tu Jianhua suggested that the national level introduce the "Regulations on Access to Motorcycles in the City" to abolish the urban ban on motorcycles.
             
            "Forbidden and restricted motorcycles" across the board violates the scientific nature of urban management and hinders the transformation and upgrading of China's motorcycle industry
             
            According to Tu Jianhua, there are currently nearly 200 cities across the country that implement the “restricted motorcycles” regulations. Among the 4 municipalities directly under the Central Government, 23 provincial capital cities, 5 autonomous regional capitals, and 2 administrative special zones, only Chongqing, Lhasa, Hong Kong, and Macau do not. Motorbikes are forbidden." Since 1985, this policy has continued for more than 30 years.
             
            In 2018, China's motorcycle industry entered a downward channel again, and the overall performance of the industry's production and sales was relatively sluggish. The entire industry sold 15.57 million motorcycles, a decrease of 9.13% over the previous year. 7.3 million motorcycles were exported, a decrease of 2.7% over the previous year. The "ban on motorcycles" has made the transformation and upgrading of China's motorcycle industry difficult. China's motorcycle industry has gradually surpassed India and other countries from its international position as the world's number one in output for more than 20 consecutive years.
             
            Since July 1, 2019, the national four standards for motorcycles have been fully implemented. Compared with the national three standards, the national four standards have been upgraded from carburetor upgrades to full electronic injection, which will greatly improve the environmental protection level of motorcycles. It also provides conditions for the abolition of the "ban on motorcycles".
             
            Tu Jianhua said that the one-size-fits-all approach of “banning and restricting motorcycles” violates the scientific nature of urban management and may aggravate urban traffic congestion, hinder the transformation and upgrading of China’s motorcycle industry, and even cause bad money to drive out good money in the market, causing a lot of inconvenience. Electric bicycles conforming to national standards are flooding.
             
            To this end, Tu Jianhua suggested:
            First, the local government should respect the people's travel choices from a high degree of concern for people's livelihood. The common people should have the freedom of travel choice. It is obviously unreasonable for local governments to forcibly cut off user needs by administrative means. China's motorcycle industry is a completely market-oriented industry and has strong demand. According to the newly revised "Legislative Law of the People's Republic of China" and the "Administrative Licensing Law", local governments have no legal basis for "banning and restricting motorcycles", which has seriously violated the legitimate rights and interests of China's motorcycle industry and users.
             
            The second is to abolish the "ban on motorcycles" and open up a channel for transformation and upgrading of the motorcycle industry. With the implementation of the "National Four" standard in the whole industry in the middle of the year, China's motorcycle industry is undergoing collective transformation and upgrading. If supported by the city's high-end purchasing power, the motorcycle industry will open a new channel for transformation and upgrading, and one will participate in the global motorcycle industry. Opportunities for competition in the auto industry.
             
            The third is to recommend the introduction of the "Regulations on Motorcycle City Access" at the national level. On the one hand, it guides the local government to manage scientifically, and on the other hand, it guides the motorcycle industry to achieve high-quality development. By improving the quality standards of motorcycle city access, improving the management level of motorcycle examinations, implementing a licensed sales policy, and increasing the cost of traffic violations, etc. , To solve the problem of urban traffic management more scientifically.
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