China’s national vehicle trade-in policy aimed at boosting consumption has fallen short of expectations with only 113,000 trade-in requests since the application began in March 2024, as households remain reluctant to spend amid an uneven economic recovery and repeated rounds of price cuts, reports Caixin. There was no specific target number set.
This number isn’t very large considering the time since the policy has been in force, meaning that its effect has been quite limited, an industry insider who wished to stay anonymous told Caixin.
The vehicle trade-in policy was part of an action plan the State Council, China’s cabinet, released in March to promote large-scale industry equipment renewals and trade-ins of consumer goods such as home appliances to spur investment and spending.