China's auto sales have seen a new wave of growth driven by a mix of promotional events, subsidy policies and increased government support.
During the country's just-concluded National Day holiday from Oct. 1 to 7, over 20 auto exhibitions were held nationwide, further boosting consumer demand.
Collaborative efforts between the government, automakers and banks in Zhuhai City of south China's Guangdong Province have resulted in combined discounts and subsidies, making cars more affordable to consumers.
Additionally, policy restrictions have been eased in the city, especially for vehicle trade-ins. Previously, the old car's registration and transfer, as well as the new car's registration, were required to be listed within Zhuhai, but now these limitations have been removed.
In recent years, the Chinese government has been ramping up support for the auto industry. Initiatives such as vehicle purchase tax exemptions, the promotion of new energy vehicles (NEVs) in rural areas, eased purchase restrictions and large-scale trade-in programs have been introduced to ensure steady growth of the auto industry.
Industry insiders said they expect the impact of these programs to carry on into the long term.
"The potential for passenger vehicle consumption has been further unleashed. The trade-in policy will surely ensure solid growth for the auto industry, which will, in turn, have a positive impact on the broader economy and consumption," said Wang Du, assistant to the Chairman of the China Automobile Dealers Association (CADA).
Local governments have been quick to respond with their own policies. In September, Beijing introduced a subsidy for NEV purchases, offering up to 30,000 yuan (about 4,200 U.S. dollars) per vehicle. Meanwhile, Shanghai increased the issuance of car license plates, further stimulating market demand.
"Considering the impact of our country's trade-in policies and the growing appeal of NEVs, we anticipate a positive trend in auto sales over the next three months," said Zhao Yang, vice chairman of the Automotive Committee under the China Council for the Promotion of International Trade.
With these layered policies in place, confidence in the auto industry continues to rise, bolstering consumer sentiment across the board.
"Government subsidies are very attractive right now, and with discounts offered by this dealership reaching up to 28,000 yuan (about 3,900 U.S. dollars), we're much more willing to make a purchase," said a prospective car buyer.