Chongqing - Peng Heliang, deputy director of the Chongqing Municipal Commission of Commerce, recently announced that trade-in subsidy policies have boosted sales to 20.03 billion yuan (USD 2.77 billion) in key sectors like automobiles, home appliances, and home products.

An electronics section in a shopping mall featuring prominently displayed government subsidy signs hanging on rows of home appliances. (Photo/Zhang Jinqi)

China's 300 billion yuan treasury bond stimulus is fueling equipment upgrades and consumer goods trade-ins. Since late August, Chongqing has leveraged trade-in policies to boost market activity, disbursing 2.42 billion yuan—68.48% of its allocated budget.

"On August 20, Chongqing implemented an upgraded policy for automobile replacement subsidies," said Chen Xueqin, secretary-general of the Chongqing Automobile Business Association. Chen noted that the swift implementation, flexible regulations allowing vehicle transfers and registrations both within and outside the city, and appropriately set subsidy standards have significantly revitalized the city's automobile consumer market.

Chongqing's automobile market thrived between September and October, with monthly car sales averaging 38,947 units—a 14.9% year-on-year rise. New energy vehicle (NEV) sales surged even higher, averaging 22,937 monthly units, up 18%.

A consumer engages with a sales representative at an automobile showroom, inquiring about government subsidies for new energy vehicles. (Photo/Zhang Jinqi)

Notable growth was seen in leading brands such as Changan UNI, Changan Deepal, Changan AVATR, BYD, and Tesla, which reported year-on-year sales increases of 24.8%, 12.6%, 60.9%, 14.9%, and 81%, respectively. 

NEV retail sales in September and October soared by 53.7% and 41.2%, respectively, driving a 3.8% year-on-year increase in Chongqing's total consumer goods retail sales. This growth exceeded the national average by 0.3 percentage points and ranked first among China's five international consumption center cities.

Chongqing's recovery and recycling initiatives also made strides. From January to October, 244,000 vehicles and 1.72 million used home appliances were recovered and dismantled, marking year-on-year increases of 15.5% and 10.3%, respectively. These efforts align with green development goals and address consumer demand for eco-friendly options.  

Chongqing has allocated an additional 1.03 billion yuan to expand the subsidy program and refined its trade-in policies for automobiles and home appliances to maintain the growth momentum. The adjustments include raising the subsidy rate for new energy vehicles (NEVs) from 6% to 7% of the vehicle price, with subsidy amounts now ranging from 3,000 to 19,000 yuan. Subsidies for new fuel vehicles have also increased, ranging from 2,000 to 16,000 yuan.

The subsidy categories for home appliances have been expanded from 11 to 16, now including water dispensers, air purifiers, microwave ovens, rice cookers, and disinfection cabinets. The policy covers both online and offline channels, with major platforms such as JD.com, Tmall, and Suning participating to ensure accessibility for consumers.