China's consumer goods replacement program leads big improvement in domestic demand
Date
6/26/2024 5:01:36 AM
(MENAFN) China's consumer goods replacement program, launched last March, has seen remarkable success in stimulating domestic demand, leading to significant increases in the sales of cars, home appliances, and furniture. According to the China Media Group, the Chinese Ministry of Commerce received 113,000 applications for vehicle replacement subsidies by June 25, with a notable acceleration in the pace of new applications, reaching 36,000 in the past week alone.
The automotive sector experienced robust growth as 2.2 million old vehicles were disposed of between January and May, marking a 19.4 percent annual increase. Additionally, sales of new energy vehicles surged by 32.5 percent, reaching 3.895 million units. In May alone, car sales surpassed 2.27 million units, an 8.7 percent increase from the previous year, with sales of new energy passenger cars rising by 38.5 percent.
Similarly, the home appliances and furniture sector recorded positive performances. Retail sales of home appliances hit 74.3 billion yuan in May, reflecting a 12.9 percent increase, while furniture sales grew by 4.8 percent. This program is part of a broader Chinese strategy aimed at boosting consumption and driving economic growth, highlighting the government's efforts to invigorate the domestic market through targeted initiatives.
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