Financial Services Association, April 17 (Reporter Liu Yang) After 14 departments including the Ministry of Commerce issued the “Action Plan to Promote Trade-In of Consumer Goods” on April 15, local governments intensively introduced “trade-in” policies.

On April 16, Suzhou launched a “trade-in” policy for automobiles and home appliances in response to the “trade-in” partnership, with a total subsidy of 120 million yuan. Among them, the total subsidy for the “Home Appliance Trade-In” consumer season campaign launched on April 20 is 20 million yuan. Meanwhile, Suzhou's 2024 automobile “trade-in” and car purchase subsidy policies will also be officially implemented on April 20. The total amount of red envelopes for car purchase subsidies reached 100 million yuan, or 50 million yuan each for “trade-in” and direct new purchases.

On the same day, the “Henan Province's Implementation Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-In” was issued. The target is that by 2027, the recycling volume of end-of-life vehicles will about double compared to 2023, and the volume of used car transactions will increase by 45% compared to 2023, etc. The day before, Shanghai held an executive meeting of the municipal government to promote large-scale equipment upgrades and consumer goods trade-in in accordance with the municipal committee's deployment.

The reporter didn't finish the statistics. In April alone, Guangdong, Henan, Hunan, Shandong, Jiangsu, and Hainan vigorously promoted car trade-in. Among them, Guangdong Province issued the “Guangdong Province Action Plan to Promote Trade-in of Consumer Goods”, which highlights both the construction of an automobile cycle system and the expansion of automobile consumption; Shanghai issued the “2024 Shanghai Old Vehicle “Trade-In” Subsidy Implementation Rules, which provide a one-time car purchase subsidy of 2,800 yuan to eligible individual users; and the Hunan Provincial People's Government issued the “Hunan Province's Implementation Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-in”, which mentions that the entire chain promotes automobile trade-in. Furthermore, as the first stop of the “Home Appliance Trade-In and Green Distribution Theme Campaign” hosted by the Ministry of Commerce, the Hainan International Consumer Season was launched in Haikou City. Eligible residents can enjoy certain subsidies and one-stop shopping for new products. While attending the event, Vice Minister of Commerce Sheng Qiuping pointed out that the Ministry of Commerce adheres to the “Policy+Campaign” two-wheel drive, focuses on promoting the trade-in of consumer goods, carries out the “Consumption Promotion Year” series of activities, and takes more measures to stabilize and expand consumption to consolidate and enhance the positive trend of economic recovery.

According to data from the China Automobile Association, in January-March, China's automobile production and sales completed 6.66 million units and 6.72 million units respectively, up 6.4% and 10.6% year-on-year respectively, achieving a good start in the first quarter. Among them, domestic automobile sales were 5.396 million units, up 6.2% year on year; automobile exports were 1.324 million units, up 33.2% year on year. According to Chen Shihua, Deputy Secretary General of the China Automobile Association, factors such as numerous new car launches, offline events such as auto shows, and the introduction of trade-in promotion policies in some regions are important forces driving the rapid growth of the car market in March. “The trade-in policy may be a key factor in determining whether the auto market can grow positively this year.”

While local governments are intensively introducing local “trade-in” policies, they have reported four consecutive years of NEV activities to the countryside, which will soon be launched again in 2024. On April 16, the China Association of Automobile Manufacturers issued the “Notice on the 2024 Recommended Catalogue Application for New Energy Vehicles Going to the Countryside”, which clarifies the declared models.

“In the current context of a 'good start' in the automobile market, 'trade-in' is expected to further enhance consumers' desire to buy cars and unleash consumption potential.” The chief economist of CITIC Securities clearly believes that promoting “trade-in” automobiles and stimulating market demand has four areas of focus: one is to further improve and refine “trade-in” related policies, such as increasing subsidy policies for new energy vehicles and lowering the threshold for consumers to buy cars; the second is to optimize automobile loan policies, according to the latest “Notice on Adjusting Policies Related to Automobile Loans” to reduce the burden of car purchases; the third is to improve the trading environment in the used car market, increase market transparency, simplify the transaction process, and increase consumer confidence; the fourth is to increase the right The promotion of new technology vehicles such as new energy vehicles has promoted the healthy development of the automobile market while achieving a dual upgrade of environmental protection and technology.