China's Trade-In Programme Spurs Growth In Car And Appliance Sales

A trade-in programme initiated by the Chinese government in March has led to increased sales of cars, home appliances, and furniture. This initiative aims to stimulate domestic demand and bolster economic growth, as reported by China Global Television Network (CGTN).

As of 25th June, the Ministry of Commerce (MOC) received 113,000 subsidy applications for vehicle trade-ins. In just the past week, new applications surged to 36,000, according to MOC data released on Tuesday.

From January to May, 2.2 million vehicles were scrapped in China, reflecting a 19.4 percent increase compared to the previous year. During the same period, sales of new energy vehicles (NEVs) reached 3.895 million units, marking a 32.5 percent year-on-year growth and making up 33.9 percent of total new car sales.

In May alone, overall car sales surpassed 2.27 million units, an 8.7 percent rise from the previous year. Sales of new energy passenger vehicles saw a significant jump of 38.5 percent during this month.

The used car market also experienced growth with transactions reaching 7.864 million units, an increase of 8.7 percent year-on-year.

Home Appliances and Furniture Sales

Retail sales of household appliances and audiovisual equipment rose by about 342.1 billion yuan (approximately US$47.1 billion), showing a year-on-year increase of 7 percent.

In May, retail sales in the home appliances sector hit 74.3 billion yuan (about $10.23 billion), up by 12.9 percent from last year.

Furniture sales for home decor, kitchens, and bathrooms also saw a rise of 4.8 percent year-on-year in May, which is a 3.6 percentage point increase from the previous month.

This trade-in programme continues to drive economic activity in China’s consumer goods market.

With inputs from WAM