China Auto Industry Local Stimulation Plan

On June 22, 2022, the State Council of the People’s Republic of China (PRC) confirmed further plans to stimulate domestic automotive consumption. These plans include allowing vehicles that meet China 5 Emission Standards to be sold without restrictions, further supporting electric vehicle consumption, and loosening parallel import policies for autos. These changes are expected to increase sales by approximately $30 billion per year. 

Per the Ministry of Commerce, auto consumptions count for one fourth of the total social retail sales, the Central Economic Work Conference also emphasize the importance of further pushing auto sales as mentioned in the “Outline of Strategic Planning for Expanding Domestic Demand (2022-2035)” that was released by the State Council in December 2022. Several provincial and municipal governments released plans to support this effort, which include additional sales tax deductions, more subsidies for purchasing new energy vehicles, providing vouchers to customers to subsidize auto consumptions, subsidies for switching from conventional vehicles to new energy vehicles, and providing automobile purchase funding. Plans vary by city, but qualified automobiles are not limited to any specific brands. 

Despite COVID-related lockdowns, passenger vehicle sales in China reached 20.54 million units, a year-on-year increase of 1.9%, the 2023 passenger vehicle sales are expected to reach 21.6 million units, with a year-on-year increase of 4.9%. 

For further information, please contact a representative from the CS China Auto Team:
Beijing: Ms. Jessica Tan, feng.tan@trade.gov 
Guangzhou: Mr. Karic Chen, karic.chen@trade.gov 
Shanghai: Ms. Lisa Ouyang, lisa.ouyang@trade.gov
Shenyang: Ms. Dongmei Sun, Dongmei.sun@trade.gov 
Wuhan: Ms. Catherine Le, Catherine.le@trade.gov