Policy does not touch the parts and components companies hope the regulations "care"

On July 24, 2013, Premier Li Keqiang presided over the executive meeting of the State Council and decided that from August 1, 2013 onwards, VAT and business tax should be temporarily exempted for small and micro enterprises with monthly sales of no more than 20,000 yuan. We must pay close attention to studying relevant long-term mechanisms. In this regard, the person in charge of a small-scale manufacturing company stated that the scope of “monthly sales of no more than 20,000 yuan” is basically inconsistent with the tax reduction conditions for manufacturing companies. I hope the government can further increase policy support in the future.

In fact, since 2011, the state has introduced a series of taxation and preferential policies for the development of small and medium-sized enterprises, especially small and micro enterprises. At the same time, it has also given more support to the development of private enterprises and has reduced the burden of taxation on these enterprises and promoted them. Its healthy development has played an active role.

As an important part of the manufacturing industry, most auto parts companies are small and medium-sized enterprises, and there are also small and micro enterprises. Private enterprises account for a large proportion. Can they benefit from these policies? What support is needed?

Policy does not touch the enterprise hard to benefit

“This policy can only benefit individual businesses such as small business hawkers, and auto parts companies will not be involved at all. Even if the standard is raised to 200,000 yuan, general enterprises will not be able to benefit. The production enterprises have monthly sales of less than 20,000 yuan. If we can hire a few people, can such a company still exist?” said Zhu Yuanxian, technical director of Chengdu Witt EFI Co., Ltd.: “Our company has sales of tens of millions of yuan per month and at least five or six million yuan.” Said that for auto parts companies, the monthly sales of small and micro enterprises must be at least 300,000 to 500,000 yuan.

Chu Yue, deputy secretary-general of the Filter Division of the China Internal Combustion Engine Industry Association, also believes that the standard must mention at least three to four million yuan for companies to benefit. “Now the average white-collar workers' monthly wages can exceed 20,000 yuan, and it is unrealistic for the production enterprises to sell 20,000 yuan per month. The member companies of our clubs are at least 100,000 yuan and hundreds of thousands of yuan in sales per month,” he said. .

“But environmental products may have the opportunity to enjoy the country’s preferential tax and fee policies.” Chen Qizhang, general manager of Sichuan Zhongzi Exhaust Gas Purification Co., Ltd. stated: “In order to support the environmental protection industry, the Ministry of Environmental Protection or the National Development and Reform Commission has a preferential tax policy for environmental products. At present, it should be at the stage of soliciting opinions, and it has not yet been officially released."

Thirst for a good market environment, we hope to crack down on counterfeiting

“The state’s support policy for parts and components companies does have some, for example, the “12th Five-Year Plan” of internal combustion engines mentioned the filtration system, and the State Council’s opinion on energy-saving and emission reduction of internal combustion engines also mentioned this industry at the beginning of this year. The policy is certainly good, but how the policy is actually implemented in the enterprise is a problem." Pu Yue said: "The filter industry is dominated by small and medium-sized enterprises, enterprises must first survive, and then to talk about development, and now many companies have problems in their survival. There is also more capacity and strength to invest funds in the research and development of advanced technologies and products, and the projects supported by national policies all require strong strength to achieve. Therefore, many companies cannot really enjoy even if they take note of state support and cannot take action. To the preferential policy."

“The state’s support policy for the auto parts industry is still there. We have received some support from the country, the province, and the city in the past two years.” Zhu Yuanxian said: “But the most critical thing is that the market environment facing companies is too Bad, this is the biggest challenge facing the company."

First of all, in the automotive industry, the so-called rules set by the OEMs for upstream component companies are too harsh and are not conducive to the development of component companies, and double standards are applied to domestic and foreign companies. “Regulations and unspoken rules of the industry are issues of people's mindsets and it is difficult to change them. I myself are very much lost about them.” said Zhu Yuanxian.

Chu Yue concluded that if filter companies cannot develop well during the 12th Five-Year Plan period, they will certainly be marginalized. The primary reason for the difficulty of business survival is that the market is not very normative. He said: "The market needs to be standardized, domestic independent filter companies want to do a good job to meet the national IV emissions of products, but the host plant is not willing to give domestic companies the opportunity to produce it and can not be tested and proved to be useless." Therefore, The filter branch now proposes to strengthen links and mutual support for the automotive upstream and downstream industrial chains, hoping to lead the filter industry to develop filter paper that meets China IV emissions and contribute to the development of the automotive industry.

According to Zhu Yuanxian, the country’s support is the most important. "First of all, we must be inclined from the policy, especially to encourage and support the development of core basic parts and components enterprises," he said. Second, he believes that the country is now investing a large amount of support funds into new energy vehicles, especially electric vehicles. Although there is also support for the traditional auto parts industry, the intensity is almost insignificant compared with new energy vehicles. "It is correct to support the direction of the new energy industry, but it is a medium and long-term solution. To solve the problem in the current period of 5 to 10 years, we must rely on traditional automotive technology," said Zhu Yuanxian.

Zhu Yuanxian believes that in order to create a good market environment for the enterprise, the government must continue to strengthen a series of policies such as the support of environmental protection laws and regulations and the implementation of automobile safety regulations. "For example, to increase punishment and impose strict punishments on falsification of decks, it will certainly exert greater pressure on end users and the market will improve." He said: "On the one hand, more support for advanced things; On the one hand, falsification will be punished. Once the rewards and punishments are met, the sinister ways are suppressed and positive energy will appear."

“Whether it is to reduce taxes for small and micro enterprises or tax cuts for environmental products is only one aspect.” Chen Qizhang believes that the real use of products in the market is the greatest support for companies and industries. “Now the severity of counterfeiting in the auto parts industry is as great as that in other industries such as food and medicine.” He said that a serious shortage of government supervision has led to a large number of frauds in the industry, which is detrimental to the development of the company.

"Especially the environmental protection industry, because the product does not involve personal interests, mainly social benefits and environmental protection benefits, fraud is a common phenomenon. I heard that Beijing Environmental Protection Bureau sampling a lot of cars in the test center in Yizhuang, Beijing, exhaust emissions are not qualified, ' North Shangguang’s demanding areas are like this, and it can be imagined that other regions have done even worse.” Some industry insiders said: “A lot of companies engaged in EFI and other energy-saving and environmental-friendly industries have been maddened and made an annoyance. ”

Laws and regulations cannot have the imperative of lack of impetus for technological progress

The poor market environment has made the gap between China's spare parts companies and international giants growing. “I think the current pattern of parts and components has basically taken shape. At present, there is no domestic company that can compete with Bosch, Denso, Delphi and other international giants. The gap is very large and growing.” Zhu Yuanxian was very sad. Pu Yue said that the domestic high-end filter market is basically dominated by wholly foreign-owned and joint ventures. The market for leading filter companies is only in the low-end market, especially in the mid-range market, and the share of high-end market is almost negligible. , "The industry is currently not even ready to meet the national III emission filter, the State IV has come in, how to do a good job in the current situation?"

“Now the entire downstream company has no confidence in the national laws and regulations. When the wolf comes, everyone is not going to work now, so there is no incentive for technological advancement.” Zhu Yuanxian said: “If companies lack the momentum for technological progress, Then how can we mention product upgrading and industrial upgrading? Our technological gap with the world's level will be greater and greater, resulting in the automotive industry, especially the parts and components industry will be marginalized in a few years."

Regardless of whether or not the tax burden is reasonable, Chen Qizhang believes that the government’s support for enterprises is far less effective than the serious implementation of laws and regulations. “Post-treatment is an emerging industry that is contributing to environmental protection. Companies have made preparations in strict accordance with the requirements of the country. As a result, the policy is pushed and pushed again, and we feel more sad.” He said.

Therefore, if you want to truly support the development and expansion of parts and components companies, the first thing is for the government to implement policies and regulations that are mandatory and strictly regulated. "Actually, for self-tail gas, I don't want to cut taxes. I only hope that after paying the tax, the national standards can be implemented and implemented seriously after the announcement. Other policies are irrelevant to us." Chen Qizhang said: "At this stage, I feel that there is no more pressing need than strict enforcement of regulations, and that the parts and components companies really need to implement them. This cannot be implemented, and others have no meaning."

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