Auto Market Golden week: Subsidies Fuel Consumer Interest in New Vehicles
Beijing, October 8th – The recent “Golden september and Silver October” period, coinciding with the national Day holiday, has seen a surge in auto market activity, driven largely by government subsidies and a consumer appetite for new vehicles, especially from emerging brands.
NIO, Avita, and Xiaopeng Motors (XPEV) are among the manufacturers reporting increased foot traffic and sales, though maintaining consistent nationwide pricing. Representatives from thes companies emphasize a direct-sales model with fixed, clear pricing, supplemented by holiday-specific gifts or lucky draws, effectively acting as incentives.
The current market dynamic represents a shift from earlier this year, when intense “price wars” prompted regulatory intervention. According to a salesperson from a new energy vehicle (NEV) brand, promotions and price reductions have become more rational, with current discounts stemming primarily from state and local government subsidy programs.
These policies are proving effective. The Ministry of Commerce reports that, as of September 10th, applications for the “old-for-new” car replacement program reached 8.3 million. Furthermore, provinces and cities like Handan, Zhengzhou, and Nanjing have introduced additional consumption coupons and subsidies to further stimulate demand.
The ability to leverage these localized incentives is becoming a key strategy for dealerships.Beijing News Beike Finance reporters found that new energy vehicle brands are assisting customers in identifying locations with the most advantageous subsidy policies to maximize savings.
The China Passenger Union Branch notes that the combination of national subsidies and the implementation of local incentives is releasing pent-up consumer demand, particularly during the traditional peak sales season of “Golden september and Silver October.” Some regional subsidies are offered on a first-come, first-served basis, adding a sense of urgency to purchases.
Geng Hongzhou, a first-level inspector of the market Operation and Consumption Promotion Department of the Ministry of Commerce, highlighted the success of the “old-for-new” policy, stating it effectively promotes automobile consumption, industrial upgrading, and resource management.
Source: Beijing News
Author: Zhang Bing
Original Title: Auto Market Golden Week｜New cars attract “tasting new” consumers, and subsidy policies drive consumption to heat up
