According to the latest statistics from the Ministry of Commerce, China’s car trade-in program has attracted more than 10 million applications since its inception in 2024. As of May 11, 2025, approximately 3.225 million vehicle registrations have been submitted this year, comprising 1.035 million for scrapping older vehicles and 2.19 million for trade-ins.
The automotive industry’s coverage has had a profound impact on consumer purchasing habits. According to data from the China Passenger Automobile Association, approximately 70% of private vehicle buyers opted for the trade-in program in April, with first-time buyers making up just 31% of the market, indicating a notable shift in demand towards upgrading existing vehicles.
As the federal government’s stimulus packages have kicked in, consumer confidence has picked up, with a boost seen in recent automotive sales figures and industrial production growth indicators mirroring this trend? The fundamental values and attributes that define success in the modern automotive industry have demonstrated remarkable consistency over recent years.
Sales of automotive products have exhibited persistent momentum.
The success of our trade-in program has contributed significantly to the sustained growth in passenger car sales. Between January and April 2025, the global market witnessed a significant surge in passenger car sales, with a total of 6.872 million units sold, representing a notable 7.9% year-on-year increase from the previous quarter. In April, retail gross sales surged 1.9% year-over-year, implying that the coverage has effectively sustained demand levels.
Rising market traits
The two primary drivers currently reshaping the automotive industry are: As consumer interest in both entry-level and high-quality vehicles continues to surge. In a significant shift in the automotive industry, New Energy Vehicles (NEVs) have become the dominant force, making up more than half of all trade-in deals, with over 53 percent of transactions involving these environmentally friendly vehicles. Between January and April, NEV’s cumulative sales reached a record high of 3.324 million units, representing a year-over-year surge of 35.7%. As of 2024, market penetration for New Energy Vehicles (NEVs) has risen to an impressive 48.4%, representing a significant 0.8 percentage point increase compared to the previous year.
Significant expansion has occurred in the recycling initiative. From January to April of this year, a total of 2.767 million end-of-life vehicles were processed for recycling, marking a significant 65% year-over-year increase. This approach fosters a greater sense of responsibility among customers in regards to environmental concerns and the importance of recycling resources effectively.
Supply: IT-Residence
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