Jiangxi to Build a Car Industry with Steady Development Policy


Wu Xinxiong, deputy secretary of the Jiangxi Provincial CPC Committee and executive deputy governor, said at a news conference that during the “Eleventh Five-Year Plan” period in Jiangxi Province, the scale of the auto industry will be further expanded, the total volume of the auto industry will be expanded, and the province’s automobile production enterprises will accelerate development and expansion. The production of automobile brands really makes the automobile industry an important growth point for the industrial economy in Jiangxi.

2010 sales revenue of 50 billion

The “Eleventh Five-Year Plan” of the Jiangxi Machinery Industry defines the automobile industry as one of the five key development industries. Jiangxi plans to form an annual production capacity of 750,000 cars and special vehicles in 2010, achieve a sales income of 50 billion yuan, and a total profit and tax of 6.5 billion yuan. Under this goal, Wang Xigao, chairman of Jiangling Motors Corporation, stated that Jiangling will achieve an annual production and sales of 300,000 vehicles at the end of the “Eleventh Five-Year Plan”, with sales revenue of 30 billion yuan, and profits and taxes of 3 billion yuan; Changhe Automobile Co., Ltd.’s chairman Liu Hongde The company stated that Changhe will strive to achieve the goal of selling 400,000 complete vehicles, 300,000 engines, 18 billion yuan in sales revenue, and 1.8 billion yuan in profits. It will become a first-class enterprise that produces and operates economical, small-displacement cars in China.

71 billion construction of the top ten automotive industry projects

Focusing on the overall goal of the “Eleventh Five-Year Plan” of the automotive industry, Jiangxi will start construction of the top ten automotive industry projects starting from this year: Jiangling Holdings will invest 810 million yuan to form an annual production capacity of 100,000 passenger vehicles; Jiangling shares investment 9. RMB 2.1 billion to form an annual production capacity of 40,000 light-duty passenger vehicle projects; Jiangling Co., Ltd. invested RMB 350 million to form an annual production capacity of 40,000 PUMA diesel engine projects; Jiangling Chassis invested RMB 250 million to form an annual output of 300,000 sets. Various types of automobile drive axle projects; Jiangling Group invested 697 million yuan to form an annual production capacity of 60,000 VM engine projects; GETRAG (Jiangxi) Transmission Systems will invest 1.53 billion yuan to form an annual output of 1 million yuan. Taiwan car transmission project. At the same time, Changhe Suzuki Motor Co., Ltd. has invested 498 million yuan to form an annual production capacity of 70,000 YK5 series new model projects; an investment of 300 million yuan to form an annual output of 50,000 sets of K series engine second-phase projects; an investment of 1.1 billion yuan Yuan, forming an annual production capacity of 300,000 sets of K-Series engine projects; investment of 700 million yuan to form Changhe Suzuki Jiujiang Company with an annual output of 200,000 vehicles.

Provincial Motors Incorporated into Government Procurement Plan

The "Opinions on Supporting the Sound Development of the Automotive Industry", which will be implemented starting in May, clearly puts provincial-produced automobiles into the scope of government procurement, and implements market competition in government procurement and preferential policies for enterprises in the province under the same conditions. These include the use of buses by government departments, and work vehicles purchased by units at the county level and below. In addition, the construction and transportation administrative departments and the urban people's government must organize and guide city bus companies and taxi companies to actively purchase provincial-produced automobiles.

The "Opinions" also introduced series of concrete measures in encouraging the promotion of independent innovation, strengthening coordination services, providing production guarantees, and increasing credit support. Among them, the automobile manufacturing enterprises will be listed as the focus of the support of the political and monetary joint meeting, and coordinate the commercial banks to increase their credit support to auto manufacturers and distributors. For purchasing provincial auto consumption credit, the down payment ratio can enjoy the bank's lower limit preferential policies.

Encourage social purchases

The "Opinions" pointed out that users who purchased new provincial automobiles and settled in Jiangxi Province will be subject to one-stop processing, and will be exempted from the new automobile inspection fee; the one-time discount on road maintenance fees will be 50%, including the purchase of new provincial products ( Refers to the passenger car within two years from the date of listing, and then increases the discount by 30%. Users outside the province purchase provincial-produced automobiles, which can be registered in the province and enjoy the same preferential treatment as users in the province.

According to industry analysts, the introduction of the Opinions not only promotes the steady development of the Jiangxi automobile industry and accelerates the development of the automobile pillar industry, but also radically expands the total volume of the Jiangxi automobile industry. The automobile industry will become the “Eleventh Five-Year Plan” period in Jiangxi One of the highlights of industrial economic growth.

Jiangxi Provincial People's Government's Opinions on Supporting the Development of the Automotive Industry

The people's governments of cities, counties (districts) and departments of the provincial government:

In order to further support the steady development of the province's auto industry, speed up the development of the automobile pillar industry, and expand the total volume of the auto industry, we hereby make the following observations:

First, incorporate government procurement. Provincial production cars will be included in the scope of government procurement, in the implementation of market competition in government procurement, under the same conditions preferential policies for enterprises in this province priority. Including: the use of buses by government departments, and work vehicles purchased by units at the county level and below.

The construction and transportation administrative departments and the urban people's government shall organize and guide the city bus companies and taxi companies to actively purchase provincial-produced automobiles.

Second, encourage the community to buy. A one-stop solution for newly-produced provincial automobiles and users who have settled in Jiangxi Province will be exempted from the new automobile inspection fee; a one-off discount of 50% on road maintenance fees, including the purchase of provincial-produced new listings (referring to the date of listing) In the first two years, passenger cars are used, and the discount is increased by 30%. Users outside the province purchase provincial-produced automobiles, which can be registered in the province and enjoy the same preferential treatment as users in the province.

Third, promote independent innovation

(I) Make good use of the country's current preferential policies.

1. The costs incurred by auto manufacturing companies in the research and development of new products, new technologies, and new processes are not subject to the proportionate limit and are included in the administrative expenses.

2. Automobile manufacturing enterprises may tax their income at the low end of the year when 150% of the actual technology development costs incurred in the year are low. The part of the actual technology development expenses that was deducted in the year may be carried forward within 5 years as stipulated in the tax law. If the employee education fund drawn by the automobile manufacturing enterprise is within 2.5% of the total taxable salary, it may be deducted before the enterprise income tax.

(3) The equipment and equipment used for research and development of automobile manufacturing enterprises, whose unit value is less than 300,000 yuan, may be divided into management fees once or several times, among which the standard for the functional assets of the past shall be managed separately, but no depreciation shall be taken; If the value is more than 300,000 yuan, it may adopt a policy of shortening the depreciation period of fixed assets or accelerating depreciation.

4. Automobile manufacturing enterprises implement technological transformation projects that meet industry policies. The required 40% of the investment in domestic equipment can be credited against the newly added enterprise income tax in the year of the company's technological transformation project equipment purchase. If the newly added enterprise income tax amount is not creditable, the amount of investment that has not been credited can be credited with the additional corporate income tax amount for the year before the company purchases equipment, and the credit period is 5 years.

5. Imported equipment required by the automobile manufacturing enterprises in line with national industrial policy projects shall be exempt from customs duties and import value-added tax in accordance with relevant regulations.

6. The above preferential policies shall be implemented by the Provincial Development and Reform Commission, the Provincial Economic and Trade Commission, and the taxation, customs, and other departments in accordance with the basic construction and technological transformation management intelligence respectively.

(2) To vigorously support the technological progress and industrial upgrading of automobile manufacturing enterprises.

Relevant provincial departments must raise funds by adjusting existing budget funds and seeking support from relevant parties, etc. to support auto manufacturing companies to accelerate technological innovation, implement technological transformation, optimize product structure, and promote technological progress and industrial upgrading. Among them: the Provincial Development and Reform Commission mainly supports Changhe Automobile Co., Ltd. The Provincial Economic and Trade Commission mainly supports the Shangrao Bus Factory and Pingxiang Bus Factory. The Provincial Department of Finance focuses on supporting the Jiangling Motors Corporation, and the Provincial Department of Science and Technology selects and supports the technology innovation research and development projects of auto manufacturers. The automobile manufacturing companies are located in districts and cities must also increase their special fund support.

Fourth, strengthen coordination services. Development, economic and trade, finance, land and resources, construction, quality and technical supervision, customs and other relevant departments must actively develop their respective functions and formulate specific policies and measures to support the rapid development of automobile manufacturing enterprises. Priority will be given to guarantee the land for the construction of automakers' projects, allowing the approval of the Provincial Department of Land and Resources, the approval of the provincial people's government, and the use of land by authorized enterprises for the operation; increasing the intensity of cracking down on counterfeit automobiles and auto parts, and preventing counterfeiting outside the province. Fake and inferior products enter the market in our province; provide convenience for customs clearance of imported equipment, molds, and parts for automobile manufacturing enterprises; simplify procedures and shorten processing time; and actively help auto manufacturers solve problems and conflicts in construction, production, and operation.

Fifth, provide production protection. The automobile manufacturing enterprises have been listed as key protection units for coal, electricity and oil transportation, especially ensuring electricity supply. Strengthen the convergence of production and demand for raw materials such as steel used by enterprises, coordinate the establishment of a relatively stable strategic cooperative relationship between iron and steel enterprises and automobile manufacturers in the province, actively develop steel materials for automobiles, and enhance the ability to provide necessary steel materials. Improve the industrial supporting environment to support the development of supporting enterprises in the province, support a group of key auto parts industrial parks, and organize the connection between the supporting enterprises in the province and the vehicle manufacturers. Strengthen the support of talents, universities and colleges in the province must actively adapt to the requirements of the development of the automobile, reasonably adjust and set related professional and disciplines, and specifically cultivate the talents required by the automobile industry; carry out school-industry cooperation and strengthen the automotive industry in our province. Need all kinds of talent training.

Sixth, increase credit support. The automobile manufacturing enterprises will be listed as the focus of the joint meeting of the Political and Banking Corporation and will coordinate the commercial banks to increase their credit support for auto manufacturers and distributors. For purchasing provincial auto consumption credit, the down payment ratio can enjoy the bank's lower limit preferential policies.

This opinion was formally implemented on May 1, 2005.






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