Chongqing's Automotive Market Surges Amid Festive Spending and Old-for-New Policy

Chongqing - During the National Day holiday, Chongqing's automotive market, particularly the electric vehicle (EV) segment, experienced a remarkable surge, fueled by festive consumption and the old-for-new vehicle policy.

Major EV manufacturers in Chongqing, including Changan Avatr and SERES, reported impressive order volumes. Avatr announced that daily orders for the Avatr 07 surpassed 1,000, while the Harmony Intelligent Mobility Alliance (HIMA) reported over 6,200 orders for the AITO M9.

Before the holiday, Chongqing announced an additional budget for the old-for-new vehicle policy to coincide with the holiday period, assisting stores in attracting more customers.

A Chongqing Municipal Commission of Commerce representative reported that after the initial round of subsidies was depleted on September 9, Chongqing swiftly allocated an additional 250 million yuan on September 12 to address the market demand for vehicle replacements.

The policy subsidies generated over 160 million yuan (USD 22.68 million) in car sales within the first four days of the National Day holiday, added the Chongqing Municipal Commission of Commerce.

Under this policy, consumers can exchange old vehicles for new ones and receive cash subsidies based on the type of vehicle: fuel or electric.

Electric vehicle purchases qualify for higher subsidies of 6% of the new vehicle's invoice price, with a minimum of 3,000 yuan and a maximum of 12,000 yuan. In contrast, fuel vehicle purchases receive a subsidy of 5%, with a minimum of 2,000 yuan and a maximum of 10,000 yuan.

Chongqing residents are selecting new energy vehicles. (Photo/Sun Kaifang)

On October 4, the Avatr Experience Center at the Ring Shopping Park was bustling with buyers, with a sales representative reporting a 20-30% increase in orders for more economical and intelligent new energy vehicles with greater subsidies.

Local resident Zhao Ruixi mentioned that his old vehicle, which met the emission standards for a new car listed in the tax-exempt EV catalog of the Ministry of Industry and Information Technology of the PRC, qualified for a 20,000 yuan subsidy. He placed an order for an Avatr 07 on the day he visited the showroom.

In addition to the old-for-new subsidies, various EV manufacturers launched promotional activities, boosting EV sales during the holiday. "We're offering a package worth 45,000 yuan, alongside the old-for-new subsidy, including trade-in bonuses and discounted maintenance services," said a manager of Changan Qiyuan flagship store in Yubei.

A representative from the Chongqing Automobile Business Association reported that in September, total sales of narrow passenger vehicles in Chongqing reached 35,600, with EVs accounting for 33.07% of that total and experiencing a year-on-year growth of over 57.3%. This trend in EV sales relative to total vehicle sales highlights the rapid expansion of the EV industry in Chongqing.

The growth of EVs is boosting Chongqing's overall automotive sector and reinforcing its status as China’s automotive hub. Data from the Automobile New Quality Productive Force Development Forum shows that Chongqing produced 1.54 million vehicles from January to August, an 11% year-on-year increase, with EV production soaring to 525,000 units, a rise of 151.4%.