The National 'Two Sessions' for 2025 have just concluded, bringing with them numerous benefits for the domestic auto market, as highlighted in Premier Li Qiang's government work report and the policy announcements made during the event. These benefits primarily focus on rectifying vicious competition, expanding domestic demand, accelerating the adoption of new energy vehicles, stimulating auto consumption, technological upgrades, and ensuring industrial chain security.

First, a comprehensive rectification of vicious competition fosters a healthy auto production and circulation ecosystem.

In his government work report, Premier Li Qiang emphasized the need to "eradicate local protectionism and market segmentation, address bottlenecks and obstacles hindering economic circulation in terms of market access, exit, and factor allocation, and comprehensively rectify vicious competition." The General Secretary also underscored during the deliberation of the Jiangsu delegation the importance of deepening the reform of factor market-oriented allocation and proactively eliminating local protectionism, market segmentation, and vicious competition.

Delegates and committee members at the 'Two Sessions' also put forth suggestions, calling for expedited centralized rectification efforts and comprehensive optimization of the business environment.

Second, expanding domestic demand remains a priority, with auto consumption playing a crucial role.

In his government work report, Premier Li Qiang outlined a series of policy directions centered around "expanding domestic demand," aiming to unleash the potential of the domestic market through measures such as enhancing consumption capacity, optimizing supply structures, and expanding effective investment. These policies bode well for the domestic auto market.

Third, strengthening policies for new energy vehicles to solidify their market dominance.

This is manifested in three key areas: Firstly, the continuation of the purchase tax exemption for new energy vehicles, which reduces vehicle acquisition costs and spurs consumer demand. Secondly, the expansion of charging infrastructure. The government work report proposes adding over 600,000 new charging stations in 2025, with a focus on covering both urban and rural areas as well as highway networks, alleviating range anxiety, and accelerating the adoption of electric vehicles. Thirdly, promoting battery swapping models and battery recycling initiatives. During the 'Two Sessions', the Ministry of Industry and Information Technology stated its commitment to fostering the unification of battery swapping standards, encouraging the cascade utilization of batteries, and lowering the barriers for vehicle acquisition and post-purchase maintenance costs for consumers.

Fourth, boosting consumption of traditional energy vehicles and revitalizing the replacement and entry-level markets.

Key initiatives include increasing subsidies for trade-ins, reviving the auto-going-to-the-countryside policy, and accelerating the facilitation of used car transactions. This year, the central government has allocated special funds to provide subsidies of tens of thousands of yuan to users who scrap vehicles that meet National III emission standards or lower and purchase new ones, thereby promoting the upgrading of existing vehicles. Special subsidies for vehicle purchases are also offered for the rural market, accompanied by the construction of county-level charging networks to tap into the potential of the entry-level market. The policy restricting the migration of used cars has been fully abolished, simplifying the transaction process, promoting the nationwide circulation of used cars, and indirectly stimulating demand for new car replacements.

Fifth, accelerating advancements in intelligent connectivity and autonomous driving.

Delegates from various regions have proposed accelerating the legislation for autonomous driving and the commercialization of high-level intelligent driving models. (End)