As part of the series of economic stimulus measures launched by Chinese authorities at the end of September to boost consumption, China’s passenger car market saw significant retail activity from October 1 to 13, with 823,000 cars sold—a 20% increase compared to the same period last year. This surge reflects a broader revival in the market, bolstered by recent government policies aimed at stimulating economic growth.
The China Automobile Dealers Association’s Passenger Car Market Information Joint Conference reported that retail sales during this two-week period not only marked a 20% year-on-year increase but also showed a 17% rise from the previous month. Overall, retail sales for the year have reached 16.39 million units, which is a 3% increase year-over-year.
Specifically, the new energy vehicle sector experienced remarkable growth, with 408,000 units sold—representing a 64% leap compared to last year and an 8% rise from the previous month. Year-to-date, sales in this segment have totaled 7.54 million units, reflecting a 39% increase.
The China Passenger Car Association has noted that the government’s comprehensive consumer promotion policies, combined with recent strong stock market performance leading to increased household wealth, have boosted consumer confidence. The consumption released during the “Golden Week” holiday was particularly noteworthy. Favorable conditions, such as trade-in subsidies and incentives for replacing old cars, have created a robust environment for car purchases.
The association also mentioned that with enhanced promotional subsidies for vehicle scrappage and trade-ins, the market is showing clear signs of recovery, leading to a reduction in pricing pressures typically seen in competitive scenarios. This positive momentum suggests that the market may continue to strengthen as the year draws to a close.
September and October are traditionally peak months for the Chinese automotive market, often referred to as the “golden September and silver October.” Earlier this year, the government ramped up initiatives encouraging consumers to replace old vehicles, announcing in July that it would double subsidies for trading in old cars for new ones, with incentives reaching up to 20,000 yuan per vehicle.
According to data from China’s Ministry of Commerce, as of October 4, the platform for car trade-ins has received a total of 1.258 million subsidy applications.
