[SMM Hot Topic] Trade-In Policy Boosts Consumption, Significant Policy Effects in Many Regions

Since the beginning of this year, the Ministry of Commerce has led the implementation of the trade-in policy for consumer goods, working with relevant departments to issue a series of policy documents, increase financial support, improve the work promotion system, and coordinate efforts to promote energy-efficient vehicle replacements, smart home appliance upgrades, kitchen and bathroom renovations, and electric bicycle trade-ins. These efforts aim to establish an effective mechanism that makes replacing old items easier and encourages consumers to upgrade. Various regions have tailored their implementation plans to local conditions, effectively utilizing central government funds and long-term special treasury bonds to expand the benefits of the trade-in policy. Since the launch of this initiative, participation has been high across the country, with sustained enthusiasm for trade-ins and significant policy results.

Meanwhile, during the promotion of the trade-in policy for consumer goods, local governments have fully leveraged their autonomy and creativity, accumulating valuable experiences and practices and achieving tangible results. At a special press conference on the trade-in policy for consumer goods held by the Ministry of Commerce on December 20, officials from the commerce departments of Shanxi, Chongqing, Yunnan, and Gansu shared their local practices and outcomes.

As of 24:00 on December 19, nearly 2.7 million vehicles had been scrapped and renewed nationwide, over 3.1 million vehicles had been replaced, more than 33.3 million consumers had purchased over 52.1 million trade-in home appliances, over 53 million kitchen and bathroom renovation subsidy products had been sold, and over 1 million electric bicycles had been traded in. The effects of the trade-in policy have also extended to the supply side, significantly accelerating production in related industries. In November, national automobile production reached 3.437 million units, up 11.1% YoY and 14.7% MoM, setting a new monthly production record. The added value of the automobile manufacturing industry increased by 12% YoY, with the growth rate accelerating by 5.8 percentage points compared to October. In the home appliance and home improvement sectors, the retail sales of home appliances and audiovisual equipment, as well as furniture products above the designated size, increased by 22.2% and 10.5% YoY, respectively, in November. VAT invoice data showed that sales revenue in November for retail industries such as televisions and other home audiovisual equipment, as well as refrigerators and other daily-use home appliances, grew by 28.8% and 74.4% YoY, respectively.