China’s latest push to revitalize consumer spending through eco-friendly upgrades and smart tech adoption is driving bullish forecasts for the automotive sector. The China Passenger Car Association (CPCA) projects significant economic growth by 2025, fueled by government-backed trade-in incentives targeting durable goods like automobiles.
Secretary-General Cui Dongshu of the CPCA highlighted to CGTN that policies promoting 'greening and intelligent upgrading' are reshaping demand. 'These measures not only accelerate the retirement of older vehicles but also boost adoption of energy-efficient and smart cars,' he said. Analysts note a surge in hybrid and electric vehicle sales, aligning with Beijing’s sustainability goals.
The initiative, part of broader efforts to stabilize domestic consumption, has drawn interest from businesses and overseas investors in the Chinese mainland. With the automotive industry contributing 10% of China’s retail sales, experts anticipate ripple effects across manufacturing and tech sectors. Meanwhile, international markets eye opportunities in China’s expanding green tech supply chains.
