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Here’s what you need to know about China in the past 24 hours
China's trade-in program targeting automobiles is progressing steadily with policy effects accelerating, as combined auto trade-ins surpassed 5 million units by Monday, said the Ministry of Commerce on Tuesday.
Over 2.44 million units were scrapped and renewed while more than 2.59 million were replaced, according to the ministry.
As a key focus of the consumer goods trade-in policy, the vehicle sector has seen substantial growth of car sales in recent months.
In November, domestic retail sales of passenger cars reached 2.423 million units, marking a year-on-year increase of 16.5 percent, representing a growth of 5.2 percentage points compared to October. From January to November, total retail sales of passenger cars stood at 20.257 million units, reflecting a year-on-year increase of 4.7 percent.
People who purchase an electric car to replace an old vehicle that does not meet the latest emissions standards can receive a one-off subsidy of 20,000 yuan, while those buying a fossil fuel-powered auto with a displacement of 2 liters or less will receive a subsidy of 15,000 yuan. As a result, those wanting to upgrade their vehicle will generally choose to buy an NEV.
And as for trade-ins, those who swap their auto for an NEV will receive around 3,000 yuan more than those who opt for a gasoline-powered car.
Although the trade-in subsidies have only been in place for a short time, they are having a much bigger effect on boosting sales than the vehicle scrapping ones, said Cui Dongshu, secretary-general of the China Passenger Car Association.
Meanwhile, other sectors involved in the trade-in programs have also seen growing sales momentum. Nationwide, the home appliance trade-in program exceeded 100 billion yuan in sales within 79 days, and it took only 40 additional days to reach 200 billion yuan, underscoring the accelerating momentum of consumption upgrades.
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Editor: LI Yanxia
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