SHANGHAI: As millions of Chinese consumers trade in their devices for the latest models, ranging from electric vehicles to home appliances, the rising consumer spending has benefitted both Chinese and foreign brands.
China kicked off large-scale equipment upgrade and consumer goods trade-in programmes in March 2024, and revamped these programmes earlier this year, amid efforts to boost domestic demand and spur economic growth.
Prominent foreign brand, Tesla, has benefitted from such programmes in the sale of its revised Model Y.
Earlier this month, on the first day of deliveries of the revised Model Y in east China’s Shanghai, more than 500 new vehicles were handed over to buyers, many of whom took advantage of China’s trade-in scheme.
A resident in Shanghai surnamed Zhang, said that by trading in his old petrol car and taking advantage of consumption subsidies, he was able to purchase a revised Model Y for about 200,000 yuan.
“The incentives from these subsidy programmes are quite significant, which motivated me to place the order,” he said.
Subsidies vary from place to place. In Guangdong province in South China, for instance, consumers who buy new energy vehicles can receive subsidies of up to 20,000 yuan.
Notably, apart from the government’s stimulus policy, Tesla has also taken steps to provide various car purchase incentives, including interest free financing and insurance subsidy programmes, to further lower costs for its customers.
Foreign firms in the home appliance sector have also benefitted from the government programme.
“The Chinese government’s consumption stimulus policies, including the trade-in programme, have increased consumer spending.
“As a result, sales in Panasonic’s home appliance segment have grown,” Lin Yibin, managing officer of China & Northeast Asia Co of Panasonic Appliances Co Ltd.
Following the introduction of these policies, sales of Panasonic’s large home appliances from September to December last year, such as washing machines and refrigerators, especially in the offline market, surpassed figures from the same period of 2023, Lin added. — Xinhua
