Automotive industry: Commercial vehicles may receive national policy support

According to the Yutong Bus Company website, on the morning of March 27, Liu Tienan, deputy director of the National Development and Reform Commission, was accompanied by provincial and municipal leaders such as Deputy Governor Shi Jichun and Mayor Zhao Jiancai. Issued supportive policies and measures to investigate Yutong. The full text of the report is attached in the text.

At present, the state has already issued a plan for the revitalization of the automobile industry, involving fewer commercial vehicle sub-sectors, and only car-going to the countryside involves light trucks. From the sales performance of various sub-sectors in the previous two months, commercial vehicles are even more worrying. In January-February 2009, 10,268 large and medium-sized buses were sold in China, a year-on-year decrease of 39.2%; 40,344 heavy trucks were sold, a year-on-year decrease of 48.1%.

From the perspective of media reports, the Automobile Industry Association is now actively seeking commercial vehicle support policies. From all aspects of news, we believe that in the second quarter, the state has introduced a policy of supporting the development of commercial vehicles.

If the country introduces commercial vehicle development support policies, such as consumption tax or purchase tax relief, commercial vehicles will benefit. The sales of commercial vehicles in the first quarter were sluggish. With the arrival of the peak sales season, the second quarter results will improve. We have upgraded the commercial vehicle sub-industry rating to “overweight”. Among the listed companies, leading Yutong buses and Jinlong buses in the medium and large passenger car industry, Weichai Power, the heavy truck industry leader, and Sinotruk will benefit. Looking at the current valuation level, we recommend Yutong Bus and Weichai Power.