trade in

China’s auto sales for 1H trends above expectations, boosted by the revamped trade-in policy and local government subsidies, accelerated new product launches and increased promotions, Bernstein says.

Meanwhile, local governments have rolled out “trade-in” subsidies—appliance upgrades, EV purchases—to coax spending where property wealth has stalled.

Meanwhile, local governments have rolled out “trade-in” subsidies—appliance upgrades, EV purchases—to coax spending where property wealth has stalled.

Last year’s high base is hard to beat due to a soft consumption environment, front-loaded spending on home appliances and electronics and dwindling government trade-in subsidies since September, they say.

While there could be bouts of improvement driven by more rounds of consumer trade-in programmes, MS continues to expect relatively slow growth in consumption in China.