Sichuan province has achieved a leading position in a national consumer upgrade initiative. Data shows that from January to May, the fund payout rate for automobile trade-in subsidies in the province reached 90.9%, ranking first among China's ten major economic provinces.
This effort is part of a broader campaign to encourage consumers to replace old household goods with new ones. Through various promotional activities, the province has recorded 8.132 million applications for consumer goods trade-ins, placing it fifth nationwide. This has accelerated the flow of high-quality products and supply chains into broader markets.
Automobiles remain the category with the highest consumption value in the trade-in program. In the first five months, Sichuan saw 163,000 car trade-in applications, driving automobile consumption worth 27.5 billion yuan.
A notable trend is the rising dominance of new energy vehicles (NEVs). Among the applications, NEVs accounted for 83,000, or 51.2% of the total, an increase of 8.3 percentage points from the end of March.
Market players are actively contributing to this momentum. Many automakers are combining the appeal of new model launches with the benefits of the trade-in policy to attract buyers.
**Li Auto (NASDAQ: LI)**
For instance, on May 15, Li Auto simultaneously launched its global flagship model, the L9 SUV, in Chengdu. Capitalizing on the trade-in policy, the company also offered limited-time purchase incentives. This strategy attracted many potential buyers specifically to Chengdu, significantly boosting on-site inquiries and orders.
A representative from Li Auto noted that Chengdu is a crucial strategic market for the company. Cumulative deliveries in Sichuan have surpassed 110,000 units, with over 80,000 in Chengdu alone, solidifying its position as a top market nationally. The combination of high-end brand launches and targeted consumption policies in Chengdu is enriching the supply of premium intelligent vehicles and continuously unlocking consumption potential.
Other automakers like Tesla have also introduced various incentives, including paint and insurance subsidies, charging benefits, and more accessible financing options, layered on top of the national trade-in subsidies. Tesla reported that its sales in Sichuan in May increased by 10% month-over-month, attributed in part to the trade-in program.
Digital products are also showing strong activity. Applications for trading in mobile phones, smartwatches/bands, and tablets grew by 28%, 18%, and 7% year-over-year, respectively. Smart glasses, newly included in the subsidy scheme, have seen 3,500 units sold, generating 9 million yuan in consumption.
A lottery invoice program has been a significant driver for the trade-in campaign. In the pilot cities of Chengdu and Luzhou, participation exceeded 4.9 million people by May 31, with uploaded invoices totaling 22.42 billion yuan and 325 million yuan in prizes awarded, further stimulating consumption.
On May 26, Sichuan launched its provincial-level lottery invoice pilot, expanding the support scope to 18 cities and prefectures. A key change is the increase in the maximum prize for a single invoice from 800 yuan under the national pilot to 10,000 yuan in the provincial program, with the after-tax amount paid out in full. Guang'an has taken the lead in implementing this initiative, with full rollout across participating cities expected in early June.
Moving forward, Sichuan's commerce authorities plan to extend the consumer goods trade-in campaign into communities, households, government offices, enterprises, universities, and townships to broaden policy coverage. For the upcoming summer digital consumption season, efforts will focus on encouraging manufacturers and retailers to offer discounts and establishing a comprehensive, convenient service system. This system will integrate policy promotion, old product recycling, new product sales, after-sales service, and consumer rights protection, aiming to ensure the trade-in benefits reach consumers directly and fully unleash consumption vitality.
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