BEIJING: A consumer goods trade-in programme rolled out by the Chinese government in March has spurred rising sales of products such as cars, home appliances and furniture.

According to China Global Television Network (CGTN), the programme is part of China’s strategy to boost domestic demand and support economic growth.

As of 25th June, the Ministry of Commerce (MOC) has received a total of 113,000 subsidy applications for vehicle trade-ins. In the past week alone, new applications saw a rapid surge, reaching 36,000, according to MOC data released on Tuesday.

As the government advances this programme, car sales have continued to rise in China, the world’s largest auto market.

In the automobile sector, from January to May, 2.2 million vehicles were scrapped, a 19.4 percent year-on-year increase. In the same period, 3.895 million new energy vehicles (NEVs) were sold, marking a 32.5 percent year-on-year growth and accounting for 33.9 percent of total new automobile sales volume.

Transactions in used cars al
so increased to 7.864 million units, an 8.7 percent year-on-year rise.

In May, sales of all cars exceeded 2.27 million units, up 8.7 percent year-on-year, while sales of new energy passenger vehicles soared 38.5 percent, the data showed.

Retail sales of household appliances and audiovisual equipment also rose, netting about 342.1 billion yuan (about US$47.1 billion), a 7 percent year-on-year increase.

In the home appliances sector, retail sales reached 74.3 billion yuan (about $10.23 billion) in May, up 12.9 percent. Sales of furniture for home decor, kitchens, and bathrooms also rose by 4.8 percent year-on-year in May, a 3.6 percentage point higher than the previous month, according to the data.

Source: Emirates News Agency