China’s Auto Industry Group Seeks Extension of Vehicle Trade-in Policy
The China Association of Automobile Manufacturers has urged the government to extend the vehicle trade-in policy, which has been credited with boosting domestic car sales and production. The policy, which offers a subsidy payment of up to 20,000 yuan (S$3,700), is set to expire this month.
Trade-in Policy Boosts Auto Sales
The trade-in policy has been instrumental in driving record-high auto production and sales in November, with many consumers rushing to buy cars before the policy ends. According to the association, the policy has been credited with boosting auto production and sales.
Uncertainty Over Policy Extension
While the Ministry of Commerce is studying a similar program for next year, it is unclear whether the policy will be extended. Chen Shihua, an official from the industry lobby, said that the association is calling for the policy to be extended next year to avoid demand fluctuations in the car market.
EV Exports Struggle Amid Trade Tensions
The industry group’s demand comes as electric vehicle (EV) exports have been hit hard by growing trade tensions with key trading partners, including the European Union. Exports were relatively flat last month, with petrol cars making up more than 80% of the shipments, while EV exports dropped 29%.
Domestic Auto Sales Surge
At the same time, China’s domestic auto wholesales rose 11.7% to a record 3.3 million units last month, with new energy vehicles – comprising EVs and hybrids – surging 47.4% to 1.5 million cars, according to data from the association.
Challenges in New Markets
Chen Shihua noted that the international situation is unstable, with policies of different countries changing frequently, impacting the development of new markets.
Conclusion
The China Association of Automobile Manufacturers is urging the government to extend the vehicle trade-in policy to boost domestic car sales and production. The policy has been credited with driving record-high auto production and sales in November, and its extension is seen as crucial to maintain momentum in the industry.
FAQs
Q: What is the China Association of Automobile Manufacturers urging the government to do?
A: The association is urging the government to extend the vehicle trade-in policy.
Q: What is the vehicle trade-in policy?
A: The policy offers a subsidy payment of up to 20,000 yuan (S$3,700) to encourage consumers to trade in their old vehicles for new ones.
Q: What is the current situation with EV exports?
A: EV exports have been hit hard by growing trade tensions with key trading partners, including the European Union, with exports dropping 29% last month.
Q: What is the current state of domestic auto sales?
A: Domestic auto wholesales rose 11.7% to a record 3.3 million units last month, with new energy vehicles surging 47.4% to 1.5 million cars.
