The trade-in policy of consumer goods has achieved remarkable results, activating the new momentum of the trillion-level market.
According to the latest data from the Ministry of Commerce, as of May 31, the number of applications for car trade-in subsidies has reached 4.12 million, and the policy leverage effect continues to be released. At the same time, the domestic retail penetration rate of new energy passenger cars in April reached 51.5%, an increase of more than 7 percentage points over the same period last year, highlighting the strong vitality of the consumer market with the support of policies.
Policy “Four or two thousand jin”: two-way drive from consumption upgrading to industrial transformation
China’s bulk consumer goods have entered the era of “increment and inventory” – the number of cars in stock has exceeded 300 million, and the number of household appliances in major categories has exceeded 3 billion, and the renewal has a trillion-level market space. For consumers, the subsidies of “real money and silver” have lowered the purchase threshold of intelligent green products: in 2024, the proportion of new energy vehicles in the trade-in will be more than 60%, the sales of first-class energy-efficient home appliances will account for 90%, and the replacement of smart home appliances such as smart toilets and sweeping robots will be nearly 10 million pieces. In the first quarter of 2025, the proportion of medium and high-end models from 2,000 yuan to 6,000 yuan in the subsidy for the purchase of new digital products accounted for 76%, with significant characteristics of consumption upgrading.
For the economy, trade-in to promote supply and demand “cycle to new”: enterprises increase scientific and technological innovation based on personalized needs, and promote the high-end, intelligent and green transformation of industries. For example, home appliance enterprises accelerate the layout of intelligent interconnection products, automobile manufacturers focus on the iteration of new energy technology, and the adaptability of supply structure and consumer demand continues to improve. The policy not only releases the consumption potential of residents, but also creates an incremental market for enterprises, forming a virtuous cycle of “benefiting enterprises and benefiting the people, taking into account the strengths and weaknesses”.
Policy strengthens to expand the fence: flexibility and vitality support consumption to continue to heat up
On the basis of the results in 2024, the trade-in policy will be further upgraded in 2025:
The scope of subsidies has been expanded: the support categories of home appliances have been increased from eight categories to twelve categories, and subsidies for digital products such as mobile phones have been added; the scope of automobile scrapping has been expanded to fuel vehicles with national emission standards, and the replacement subsidies for new energy vehicles have been increased to a maximum of 15,000 yuan.
The scale of funds has doubled: the support amount of ultra-long-term special government bonds has reached 300 billion yuan, and by the end of April, the first two batches of funds have exceeded 160 billion yuan.
Local innovation implementation: localities expand the scope of subsidies and optimize detailed rules according to local conditions, and some areas include foreign trade enterprises in the support system to enhance policy coverage.
Policy flexibility directly drives consumption data to rise: Retail sales of household appliances and audio-visual equipment above the limit in April increased by 38.8% year-on-year, ranking first among the growth rate of 16 consumer goods; from September 2024 to April 2025, retail sales of household appliances reached double digits for 8 consecutive months. Growth. According to the data of the Ministry of Commerce, in the first five months of this year, about 175 million subsidies have been issued by the trade-in policy, driving the sales of related goods by 1.1 trillion yuan.
Leveraging reform and growth: becoming an important grasp of the unified large market construction
The trade-in policy is not isolated, but promoted in conjunction with reform measures such as relaxation of access and optimization of supervision. Taking the automobile field as an example, the Ministry of Commerce and other departments simultaneously carried out the pilot of automobile circulation and consumption reform, supported local innovation in the whole chain of new cars, second-hand cars and scrapped cars, optimized the policy of limited purchase and travel, cultivated after-markets such as automobile modification and RV camping, and promoted the continuous release of new consumption.
This policy combination has been recognized by international organizations: Goldman Sachs, JPMorgan Chase and other investment banks have increased China’s economic growth forecast in 2025, clearly listing the pull of consumption and domestic demand with the trade-in policy as an important consideration. With the further penetration of policy effectiveness, trade-in will continue to activate consumption potential and inject green, low-carbon and innovation-driven new momentum into high-quality development.
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