Core Viewpoint - The recent adjustments in the domestic automotive consumption market are driven by the need for improved efficiency in subsidy fund allocation, with various regions suspending vehicle replacement subsidy applications due to rapid fund depletion [1][2][5]. Group 1: Policy Adjustments - Several cities, including Zhengzhou, Luoyang, and Xinjiang, have announced the suspension of vehicle replacement subsidy applications due to the rapid consumption of the initial subsidy funds [2][3]. - The suspension of subsidies is seen as a necessary measure to address structural contradictions and rampant arbitrage activities that have emerged following the implementation of the subsidy policies [5][6]. - The central government has allocated 300 billion yuan in special bonds to stimulate automotive consumption, but the mismatch between fund distribution and local demand has led to issues [5]. Group 2: Market Reactions - The suspension of subsidies has triggered a rush among consumers to complete their vehicle replacement applications, leading to a significant increase in daily application volumes prior to the system shutdown [3][4]. - Automotive analysts suggest that the recent policy changes represent a stress test for consumption stimulation models, indicating a shift from universal to more targeted subsidies [4][6]. - The automotive market is expected to experience sustained growth as the second batch of funds is allocated and policies are refined [4]. Group 3: Challenges and Solutions - The emergence of organized arbitrage activities around subsidies has led to significant financial losses for the government and disrupted market order [5]. - Recommendations for improvement include establishing a dynamic fund adjustment mechanism and implementing a full-chain traceability system using blockchain technology to prevent fraud [6]. - The industry is exploring innovative promotional models to adapt to the current policy "gap," while also facing the challenge of identifying genuine consumer demand as subsidies are expected to decline in the future [6].