Too enthusiastic? Subsidies for car trade-ins in nearly 10 regions have been "paused". Staff member: They may be reopened in H2.

As 2025 approaches the mid-year mark, announcements regarding the "suspension of vehicle trade-in subsidy application processing" have been issued in multiple regions. This sudden development has sparked widespread concern among consumers who are holding onto their money, waiting to make purchases.

On June 11, the Shenyang Municipal Bureau of Commerce issued the "Announcement on Adjusting Some Consumer Goods Trade-in Activities," stating that starting from 24:00 on June 30, five activities would be suspended: trade-in of home appliances, purchase subsidies for new mobile phones, tablets, and smart watches (bands), "renovation" of home decoration and kitchen/bathroom products (home and home decoration products under the responsibility of the Municipal Bureau of Commerce), trade-in of e-bikes, and vehicle trade-in and renewal. The resumption of these activities will be announced separately.

On the same day that Shenyang announced the suspension of vehicle trade-in subsidies, the Department of Commerce of the Xinjiang Uyghur Autonomous Region issued an announcement stating that the subsidy funds for consumer goods trade-in in the autonomous region's commerce sector for 2025 were about to be exhausted. "After deliberation, it has been decided that the autonomous region's vehicle scrappage and renewal policy will continue to be implemented. However, the subsidy policies for vehicle trade-in and renewal, trade-in of home appliances, purchase of new mobile phones, tablets, and smart watches (bands), trade-in of e-bikes, and "renovation" of home decoration and kitchen/bathroom products will be suspended starting from 24:00 on June 15."

The day before, the "Announcement on Suspending the Application for Subsidy Eligibility Vouchers for Trade-in of Consumer Goods in Zhengzhou City for 2025" appeared on the website of the Zhengzhou Municipal Bureau of Commerce. The announcement mentioned that the subsidy funds for this round of home appliances in Zhengzhou had been exhausted. In accordance with the principle of "first-come, first-served, until funds are depleted," the application for subsidy eligibility vouchers for trade-in of consumer goods and home appliances for 2025 would be suspended starting from 12:00 on June 11. Consumers who had already received subsidy eligibility vouchers for home appliances on June 11 could still participate in the home appliance subsidy activities normally on that day. Subsequent activities would be launched and announced separately in a timely manner based on adjustments to relevant policies and funding arrangements in our province. On the same day, the Luoyang Municipal Bureau of Commerce issued the "Announcement on Suspending the Acceptance of Applications for Vehicle Trade-in and Renewal Subsidies in Luoyang City for 2025."

"The principle of 'first-come, first-served, until funds are depleted' has already been stated in the previously issued policies. The policies will only remain effective until the end of the year if the funds are not exhausted," an office staff member from the Zhengzhou Municipal Bureau of Commerce told a reporter from Cailian Press. The subsequent development remains uncertain. If new policies are introduced by relevant departments and funds are replenished, the vehicle trade-in subsidy policy may continue to be implemented. "Actually, a similar situation occurred last year as well."

Regarding the next steps, the staff member suggested consulting the business department of the Zhengzhou Municipal Bureau of Commerce. However, as of the time of reporting, the reporter was unable to reach the relevant business department by phone.

According to incomplete statistics by Cailian Press reporters, as of now, nearly ten regions have suspended applications for vehicle trade-in subsidies. In addition to the aforementioned regions, these also include Chongqing, Xuchang, Huizhou, and Suzhou District of Jiuquan City. The reasons include the exhaustion of funds, system upgrades, and the upcoming opening of a new round of subsidies.

The Chongqing Municipal Commission of Commerce stated on its official website in response to citizens' inquiries that it was drafting the second phase of the trade-in subsidy policy. A relevant official from the Department of Commerce of Guangdong Province responded that Guangdong would not end the trade-in policy ahead of schedule, while also noting that the temporary suspension of voucher distribution in some cities was due to system upgrades and periodic inventory checks.

"Judging from the situation in multiple regions, the trade-in subsidy policy has had a significant stimulating effect on the automotive market, with consumers showing high levels of participation," an industry insider analyzed.

The latest data from the Ministry of Commerce showed that as of May 31, the five major categories of consumer goods trade-ins had collectively driven sales of 1.1 trillion yuan this year, with approximately 175 million subsidies distributed directly to consumers. Among these, the number of applications for automotive trade-in subsidies reached 4.12 million.

"China's economy has maintained steady growth overall, with the economic operation showing new and positive trends, the domestic demand space continuously expanding, and the external demand market becoming more diversified," the China Association of Automobile Manufacturers (CAAM) stated on June 11. Since the beginning of this year, "the program of large-scale equipment upgrades and consumer goods trade-ins has been expanded and intensified, continuing to show its effectiveness. Coupled with favorable factors such as the launch of new products by automakers and sales promotions at auto shows in multiple regions, it has helped accelerate the release of consumption vitality in the automotive market. 'In May, the automotive market continued its positive momentum, with production and sales achieving growth of over 10% compared to the same period last year, and both domestic demand and exports showing good performance,'" CAAM said.