Subsidized rural home appliance sales exceed 50 billion yuan

13:25, November 10, 2009      

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By October 31, subsidized rural home appliance sales totaled 50.8 billion yuan (7.44 billion U.S. dollars). Sales in October exceeded 12 billion yuan, ending the falling trend in the previous two months.

Statistics showed that the sales of TV sets and refrigerators increased over 130 percent compared with September, becoming the main engine for subsidized rural home appliance sales.

17 enterprises see sales over 1 billion yuan

17 home appliance makers, including Haier, Meiling, Midea, Kelon, Changhong, Konka and Lenovo have seen sales over 1 billion yuan. Qingdao Haier Co., Ltd., the biggest winner, recorded over 8.6 billion yuan in sales.

The sales of subsidized rural home appliance had declined for two straight months in August and September, with total sales of around 7.6 billion yuan and 6.2 billion yuan respectively. Sales in October totaled over 12 billion yuan, exceeding the previous record of 8.8 billion yuan in July.

Price limit to be removed

Guodu Securities' analyst Wang Jingle said that the sales of TV sets and refrigerators both grew over 130 percent compared with the previous month, and the sales of washing machines increased by over 70 percent, leading to a rebound in October.

Shanghai Security News reported today that the highest price limit for subsidized rural home appliance is likely to be removed. The new round of bidding will start in November and will include more models.

Wang pointed out that the elimination of highest price limit would benefit home appliance makers, allowing them to put more high-end products in the huge rural market, ensuring higher profits for them. However, the market shares of home appliance makers may not witness significant changes, said Wang.

It is also notable that 14 enterprises, including UTStarcom and Hefei Swan Refrigerator Technology Co., Ltd., recorded zero sales in October. According to a circular released by the Ministry of Finance and the Ministry of Commerce, if a company records zero sales for six consecutive months, it will no longer be able to take part in the subsidized rural home appliance program.

By People's Daily Online
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