① Recently, the State Council issued the “Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-In”, which proposes to organize and carry out a national automobile trade-in promotion campaign to eliminate old cars that meet mandatory scrapping standards according to law and regulations. ② Cui Dongshu, Secretary General of the Passenger Transport Association, said that promoting car trade-in and scrapping has a huge effect on the development of the automobile market and can achieve effective and complete circulation throughout the entire life cycle chain of automobiles.
Recently, the State Council issued the “Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-In”. The “Action Plan” proposes to organize and carry out a national automobile trade-in promotion campaign to eliminate old cars that meet mandatory scrapping standards according to law and regulations. By 2027, the recycling volume of end-of-life vehicles will approximately double compared to 2023, and the volume of used car transactions will increase by 45% compared to 2023. In addition, banking institutions are also encouraged to appropriately reduce the down payment ratio for passenger car loans and reasonably determine automobile loan terms and credit lines on the premise that they are in compliance with the law and that risks are manageable.
In response to the “Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-in” issued by the State Council, Cui Dongshu, Secretary General of the Passenger Transport Federation, told reporters that promoting car trade-in and scrapping has a huge effect on the development of the automobile market. In particular, it can promote the development of end-of-life renewal, and can achieve effective and complete circulation throughout the entire life cycle chain of automobiles. “In particular, the smooth export trade of used cars can effectively divert the domestic market to enable the purchase of new cars and the consumption of relatively young cars. This has brought great impetus to the sustainable development and sales growth of the Chinese car market. In particular, NEVs will reach a market size of 14 million vehicles in 2027, and we believe their potential is enormous.”
According to the Finance Federation's theme library, among the relevant listed companies:
China Automobile obtained the first batch of used car export pilot business qualifications in the country and is actively cultivating the vehicle export business. China Automobile Engineering, a wholly-owned subsidiary, has completed a number of integrated die-casting engineering design projects.
New energy vehicle brands supported and covered by spare parts products and logistics services include well-known electric vehicle companies and leading new car builders such as BYD, NIO, Xiaopeng, and Ideal Auto.