Across the Chinese mainland, consumers are seizing the opportunity to upgrade their homes and vehicles through substantial discounts and government subsidies. Whether purchasing online or in physical stores, there’s a surge in demand for new furniture, household appliances, and cars.
This year, China launched a large-scale trade-in program focusing on equipment renewals and upgrades, as well as consumer products. The initiative aims to stimulate domestic consumption and boost development across multiple industries.
According to data from the Ministry of Commerce, the program has significantly bolstered market confidence, particularly in the automotive sector.
Automotive Sales Soar
In September, domestic passenger vehicle retail sales reached 2.112 million units, marking a 4.5 percent increase year on year. The momentum continued into October, with sales in the first three weeks rising 16 percent compared to the previous year and 12 percent over September. As of October 24, more than 2.83 million vehicle upgrade subsidy applications had been submitted nationwide, with demand still climbing.
Home Appliance Market Revitalized
The policy has also invigorated the home appliance market. By October 25, over 14.2 million consumers purchased more than 20.7 million units across eight eligible appliance types, contributing to a sales revenue of 95.07 billion yuan. Additionally, consumers bought approximately 6.3 million subsidy-eligible products for home renovations, generating an extra 19 billion yuan in sales revenue.
A Nationwide Initiative
First introduced in February, the national trade-in program was arranged for implementation by the State Council in March. Three months later, the National Development and Reform Commission (NDRC) and the Ministry of Finance announced plans to utilize around 300 billion yuan (approximately $42.5 billion) of ultra-long-term special government bond funds this year to support the program. Subsequently, the initiative expanded from industrial equipment to include home appliances, vehicles, and even real estate.
Stimulating Consumption and Growth
The large-scale trade-in program represents China’s commitment to stimulating domestic consumption and fostering economic growth. By offering substantial incentives for consumers to upgrade, the program not only boosts sales but also promotes the development of various industries.
Reference(s):
China's large-scale trade-in program ignites market enthusiasm
cgtn.com
