China's trade-in program gains pace, injects continuous momentum into economic rebound: commerce ministry

China's trade-in program for automobiles and home appliances is progressing smoothly and has achieved positive results since its launch, and is set to help further spur consumer spending and consolidate the country's ongoing economic recovery, an official from China's Ministry of Commerce (MOFCOM) said on Friday.

As of Thursday, the ministry had received 1.57 million applications for scrappage incentives and 1.26 million applications for automobile replacement subsidies. The surge reflects the growing consumer interest in upgrading their vehicles, Li Gang, director general of the Department of Market Operation and Consumption Promotion of MOFCOM, told a press conference on Friday.

Official data shows that in September, retail sales of new-energy passenger vehicles accounted for more than 53 percent of total passenger vehicle sales, indicating that new-energy vehicles are becoming mainstream in the country's automotive market.

The home appliance trade-in program stands out as another major highlight, with consumers purchasing nearly 20 million units across eight major product categories as of Thursday, generating sales of 91.34 billion yuan ($12.82 billion), according to MOFCOM.

As of Friday, the number of buyers of home appliances under the trade-in program has surpassed 10 million, data from the ministry showed.

"The stimulus policy package is also fueling the development of China's new quality productive forces and driving the green transition of related industries," Li said.

With the trade-in programs in full swing, the consumer market is showing a steady rebound and upward trajectory, the ministry stated.

According to data from the National Bureau of Statistics, total retail sales of consumer goods in September reached 4.11 trillion yuan, up 3.2 percent year-on-year.

"The trade-in policy has not only revitalized consumer demand throughout China's domestic market but has also propelled the growth of new energy, high-efficiency, and intelligent connected industries," Li noted.

China has recently intensified its efforts to stimulate consumption, providing policy support for the nationwide trade-in initiative. Analysts said that the government's all-out support is expected to provide continuous momentum to bolster economic recovery and help meet annual growth targets.

Moving forward, MOFCOM vowed to implement existing policies in collaboration with relevant parties, seizing key consumption periods such as the upcoming Double 11 online shopping festival to ensure significant progress in the consumer goods' trade-in initiative.