"Last year, we carried out the trade-in of old consumer goods, and this year we will strengthen the implementation of the trade-in policy. We will also organize pilot reform of automobile consumption in circulation, actively support local conditions to promote the efficient circulation of used cars, develop the automobile aftermarket and other aspects of the pilot, and strive to cultivate new growth points of automobile consumption." On March 17, Li Gang, director of the Department of Market operation and consumption Promotion of the Ministry of Commerce, said at a press conference held by the State Information Office to boost consumption.

 

At present, consumption is undoubtedly a strong engine of economic growth, and the automobile industry is the mainstay of the national economy. Recently, the General Office of the Communist Party of China Central Committee and The General Office of the State Council issued the "Special Action Plan to boost consumption" (hereinafter referred to as the "action Plan"). Among them, the focus on boosting automobile consumption, new cars, after the market, policies, technology and other benefits are pouring in, once again making the automotive industry boiling.

 

 

Stimulate new car consumption

 

In terms of increasing support for replacing old consumer goods with new ones, the "Action Plan" clearly states that it will make good use of ultra-long-term special government bond funds to support local governments in expanding the implementation of replacing old consumer goods with new ones, and promote the green and intelligent upgrading of large durable consumer goods such as automobiles.

 

Zhang Ruifeng, secretary-general of the New energy automobile industry Technology Innovation Alliance in Guangdong Greater Bay Area, said that this will encourage consumers to exchange old cars for new ones, accelerate the speed of car replacement, and expand the market demand for new cars. According to the forecast data of the Union branch, the scrap renewal and replacement policy is expected to drive 15 million new car transactions in 2025, which is expected to release 220 billion yuan of subsidies, and the policy subsidy has reached a record high.

 

Lang Xuehong, deputy secretary-general of the China Automobile Circulation Association, pointed out that last year, the state coordinated the arrangement of about 150 billion yuan of ultra-long-term special Treasury bond funds, and strongly supported large-scale equipment renewal and consumer goods for new, due to the relatively long time after the policy fell layer by layer, the final special fund actually has a balance. This year, the state will continue to arrange 300 billion yuan of ultra-long-term special bonds to support the replacement of old consumer goods with new ones, and the policy will be implemented earlier, which is expected to stimulate market vitality to a greater extent.

 

Relax restrictions on consumption

 

In terms of easing consumption restrictions, the "Action Plan" clearly proposes to promote the transformation of consumption such as automobiles from purchase management to use management, and this concept of innovation is far-reaching.

 

In the past, automobile consumption faced a lot of complex management regulations in the purchase process, from purchase restriction policies to cumbersome procedures, which to a large extent suppressed consumers' enthusiasm for buying cars. Now the policy orientation has changed, paying more attention to the management and service in the process of car use, indicating that the future may be optimized in the traffic congestion fee collection method, vehicle annual inspection process, parking management and other aspects of use, so that consumers can enjoy a more convenient and low-cost car experience after purchasing a car.

 

At the same time, the plan emphasizes that the number of years to ensure the "long shake" without a car family needs to buy a car. Zhang believes that this will help release the consumption potential that has been suppressed by the purchase restriction policy, so that more consumers have the opportunity to buy cars.

 

Extend the automobile consumption chain

 

The "action plan" mentioned that the pilot reform of automobile circulation consumption should be carried out to expand automobile after-market consumption such as automobile modification, rental, events and RV camping. We will strengthen capacity building in service supply, and support innovation in service consumption scenarios, integration of business forms, and industrial agglomeration.

 

Lang Xuehong analysis, "action plan" from beginning to end to emphasize the focus of "service consumption", which is very consistent with the current status of the automotive industry, the supply of automotive goods has been greater than the demand, but the demand for high-quality services related to the automobile has not been fully met.

 

For example, at present, the "silver economy" and "digital nomads" are prevalent, and RV camping, as a popular outdoor leisure method, is attracting more and more retirees and mobile office groups to participate in it. However, the shortcomings of its supporting services are increasingly prominent, such as unstable water and electricity supply, unsatisfactory sewage facilities, and lack of supporting services such as the lack of surrounding dining options. It not only affects the feelings of tourists, but also restricts the long-term development of the RV camping industry. The extension of the automobile consumption chain will help the automobile industry to find new economic growth points.

 

Optimize the efficiency of used car circulation

 

The "Action Plan" has also brought a lot of benefits in the second-hand car related provisions. In terms of the cultivation of business entities, the plan clearly proposes to cultivate and strengthen second-hand car business entities, and continue to implement facilitation measures such as "reverse billing" for second-hand car sales and registration of off-site transactions.

 

"Reverse invoicing" simplifies the transaction process, makes the second-hand car transaction smoother in the invoicing process, and saves transaction time and labor costs; The implementation of off-site transaction registration has broken the regional restrictions, and consumers are no longer limited by local car sources, greatly enriching the range of options and stimulating cross-regional second-hand car transactions.

 

At the level of information sharing, the plan focuses on strengthening information sharing in the automotive field, supporting the development of third-party second-hand car information inquiry platforms, and promoting the safe and convenient trading of second-hand cars. In the past, the used car market suffered from information asymmetry, and it was difficult for consumers to obtain real information about vehicle maintenance, accidents, mileage, etc., which led to a lack of trust and hindered the development of the market. Today, if the third-party second-hand car information inquiry platform can flourish, consumers can more convenient, comprehensive and accurate understanding of vehicle conditions, enhance confidence in second-hand car trading, and make market trading more active.

 

Promote smart and green development

 

In terms of supporting the accelerated development of new consumption, the "action Plan" proposes to carry out "artificial intelligence +" action, promote "artificial intelligence + consumption", and accelerate the development and application of new technologies and products such as automatic driving; Speed up the improvement of the low-altitude economic supervision system, and orderly development of low-altitude tourism, aviation sports, consumer drones and other low-altitude consumption.

 

Zhang Ruifeng believes that supporting the accelerated development of new consumption and accelerating the development and application of new technologies and products such as autonomous driving and drone command vehicles will provide policy support and market opportunities for technological innovation and intelligent development of the automotive industry.

 

At the same time, the "action Plan" is permeated between the lines to promote the green and intelligent upgrading of automobiles, as well as to encourage the consumption of new energy vehicles, which will help promote the development of the automobile consumption structure to the environmental protection and high-end direction, and increase the market share of new energy vehicles and intelligent vehicles.

 

Supporting policies in different areas will be accelerated

 

At the press conference on March 17, Li Gang introduced that as of March 16, the total number of applications for replacing old cars in the country was more than 1.32 million. In the first two months of this year, car sales have declined, but the number of sales has maintained growth. According to data from the Automobile Circulation Association, the retail sales of domestic passenger cars increased by 1.2% year-on-year in January and February, of which 26% year-on-year growth was accelerated in February. According to data from the Ministry of Commerce, the recycling volume of scrapped vehicles in China increased by 50.1% year-on-year in January-February, including a record 188.2% year-on-year increase in February. Li Gang also mentioned the car in introducing the relevant work to be done in the follow-up implementation:

 

Optimize services for the convenience of the people. The vehicle trade-in system will further improve relevant functions, such as adding the function of "cross-regional data verification and comparison" to continuously improve audit efficiency. At the same time, we will guide all localities to further simplify the process, improve the speed of disbursement, and make subsidy funds more efficient and convenient to reach consumers.

 

Guard against policy risks. In response to violations such as false transactions, repeated applications, and multiple sales of one machine, real-time monitoring and interception are carried out by means of information technology, and channels for supervision and reporting are unblocked to protect the legitimate rights and interests of consumers.

 

Smooth recovery chain. Focus on the "old" link, accelerate the implementation of the pilot circulation of second-hand commodities, and further promote the construction of the recycling system of renewable resources, continue to smooth the recycling chain of waste commodities, and improve the capacity and level of resource recycling.

 

Li Chunlin, deputy director of the National Development and Reform Commission, said that the "plan" is a comprehensive document to boost consumption this year and even in the future, and it is very key to implement it well. The National Development and Reform Commission will play a better role in coordinating and promoting departments to accelerate the research and formulation of complementary policies in different fields.

 

It is foreseeable that the introduction of a series of favorable policies will enhance the confidence of the whole industry chain such as automobile manufacturers, dealers, and consumers in the automobile market, promote the active and prosperous market, and promote the healthy development of the automobile industry. Zhang also suggested that financial support should be strengthened and financial institutions should be encouraged to develop more financial products and services suitable for automobile consumption, such as reducing loan interest rates, extending loan terms, simplifying loan procedures, etc., to meet the financing needs of different consumers. Improve the infrastructure related to automobile consumption, such as charging piles, parking lots, etc., and carry out pilot commercial operations of vehicle-road-cloud integration of intelligent connected vehicles and functional driverless vehicles.

 

These are also reflected in the 17th conference to boost consumption. For example, Che Shiyi, head of the credit market department of the People's Bank of China, said that the People's Bank of China will guide financial institutions to study and launch targeted financial products around new consumption scenarios such as trade-in and smart products. Support financial institutions to carry out asset securitization business with consumer loans and auto loans as the underlying assets, and increase the supply of auto loans and consumer loans.

 

Li Chunlin introduced that the dynamic innovation momentum of enterprises has spawned new technologies and new products such as artificial intelligence large models and humanoid robots, which are loved by consumers and fully recognized by the market. The National Development and Reform Commission will focus on the prominent contradictions that restrict consumption, and make great efforts to promote reform, fully release the potential of consumption, and stimulate the vitality of the market.

 

Fu Jinling, director of the Economic Construction Department of the Ministry of Finance, revealed that the central finance will arrange award and subsidy funds to support some key cities with large population base, strong driving role and good development potential to carry out pilot consumption new formats and new models, improve the first economic service system, promote innovation and enrich consumption scenarios, and further release diversified and differentiated consumption potential.

 

Originally published by China Automotive News, March 18, 2025