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Chongqing Expands 2025 Trade-In Subsidies for Vehicles, Phones, and Gadgets

By RAN ZHENG|Jan 28,2025

Chongqing—Chongqing is expanding its 2025 trade-in policies to boost consumer spending. Subsidies for vehicle scrapping and replacement will include older models meeting the National IV emission standard, and new subsidies will be introduced for smartphones, tablets, and smartwatches, announced Peng Heliang, Deputy Director of the Chongqing Municipal Commission of Commerce, on January 24.

In Jiangbei District, Chongqing, a poster promoting the trade-in program is displayed on a large screen at Guanyinqiao Pedestrian Street. (Photo/Suning.com)

Personal consumers who scrap eligible vehicles and purchase new energy passenger vehicles will receive a subsidy of 20,000 yuan ($2760) per vehicle, while those purchasing new fuel vehicles with a displacement of 2.0 liters or less will receive a subsidy of 15,000 yuan.

In addition to vehicles, Chongqing will introduce new subsidies for purchasing smartphones, tablets, and smartwatches. Starting January 20, 2025, consumers purchasing these digital products (with a unit price not exceeding 6,000 yuan) will be eligible for a subsidy of up to 15% of the final sales price, capped at 500 yuan per item.

These measures follow China's national push to expand large-scale industrial equipment upgrades and consumer goods trade-in programs in 2025. Analysts estimate these initiatives could drive retail sales exceeding 1 trillion yuan, significantly boosting domestic consumption.

In 2024, Chongqing's trade-in policies for consumer goods effectively unlocked market potential. With a total budget of 3.53 billion yuan and actual subsidies reaching 3.64 billion yuan, the policies achieved a fund utilization rate of 103.23%. The policies directly boosted vehicle scrapping and replacement sales by 6.52 billion yuan and 17.1 billion yuan, respectively, while appliance trade-ins drove sales by 6 billion yuan.

Customers are consulting purchases at a Suning.com store. (Photo/Suning.com)

These efforts contributed to a 3.6% increase in the city's total retail sales of consumer goods, outpacing the national average by 0.1 percentage points and ranking first among China's five international consumption center cities.

China's subsidy programs are designed to stimulate domestic demand and promote green consumption across multiple sectors, including electronics, appliances, and vehicles. This comprehensive approach positions China as a leader in leveraging policy-driven consumption to fuel economic growth.

In contrast, other countries have implemented targeted subsidy programs with varying scopes and objectives. For example, in 2022, the U.S. introduced the Inflation Reduction Act (IRA), offering a $7,500 tax credit for new electric vehicles contingent on battery sourcing and assembly requirements. This program aims to boost the adoption of electric vehicles and support domestic manufacturing.

In 2009, Germany introduced the "cash-for-clunkers" program, which incentivized vehicle replacement by providing financial incentives for consumers to trade in older vehicles for newer, more environmentally friendly ones. This initiative aimed to stimulate the automotive industry and reduce emissions.

The 2024 electric vehicle subsidy program in South Korea offers up to 6.5 million won ($5,300) for vehicles priced below 55 million won. The program includes subsidies based on battery type and the availability of after-sales service centers. This initiative supports the domestic automotive industry and encourages the adoption of electric vehicles.


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