Jinwu Financial News | BOCOM INTL released a research report stating that on January 8, 2025, the National Development and Reform Commission and the Ministry of Finance issued a notice on the implementation of large-scale equipment updates and the replacement of old consumer goods.
The bank indicated that the scope of support for the scrapping and updating of autos has further expanded. RBOB Gasoline Passenger Vehicles sold in the first year after the implementation of the National IV emissions standards will be included in the old car range eligible for scraping and updating subsidies. The bank estimates that this expansion includes approximately 11 million vehicles. Additionally, it will accelerate the replacement of old electric bicycles. The new 3C certification standards for electric two-wheelers will officially take effect in November 2024, and combined with the replacement policy stimulus, the bank expects consumer sentiment for electric two-wheelers to improve in 2025.
The bank pointed out that the related subsidy policy for updates and replacements in the automotive industry basically continues the subsidy policy from July 2024, but the scope of subsidy support has further expanded. The bank believes that this year's subsidies for Passenger Vehicles are expected to strengthen to further stimulate consumer spending, and subsequent stimulus policies could potentially extend to first-time purchase demand (which accounts for 60% of car purchases).
