China launches new consumption campaign to boost NEV adoption in rural regions

China has launched a new campaign to promote new-energy vehicle (NEV) sales in its counties and towns by ramping up auto trade-ins and creating diverse spending scenarios, as part of this year's efforts to boost domestic consumption, the Ministry of Commerce said on Tuesday.

The campaign will enhance the supply-demand matching and new product launches for NEVs in rural areas while improving NEV usage infrastructure, facilitating NEV adoption in the rural regions, according to a statement seen on the ministry's website.

The measures are designed to unleash NEV consumption potential and foster new growth points for the automotive market, the statement noted.

The campaign's priority will be advancing vehicle trade-in programs. Local governments will be required to set up dedicated trade-in zones and offer more suitable NEV models to meet the diverse needs of rural consumers. Another focus of the campaign involves innovating multidimensional consumption scenarios. Local governments are encouraged to advance pilot reforms in auto consumption.

Regions are also urged to organize targeted NEV promotions, such as internet-connected NEV showcases and test-drive events, while prudently advancing commercial applications of high-level autonomous driving cars in accordance with the law. 

Additional innovative measures feature customized vehicle modifications, classic car culture, RV camping, and motorsports activities, in a bid to integrate commerce, tourism, culture, sports, and health, as well as extend the auto consumption value chain.

Local governments are encouraged to leverage their resources and industrial strengths by hosting NEV promotional events in market hubs, commercial districts, pedestrian streets, and other venues.

The statement emphasizes expanding used NEV transactions and revving up relevant infrastructure development, including parking, charging stations, after-sale service outlets, and end-of-life vehicle recycling facilities in rural areas to boost the convenience of vehicle trade-ins. 

The trade-in subsidy program is part of a broader initiative announced in March 2024 to stimulate domestic consumption and shore up economic growth. Fiscal support has been ramped up, with subsidies being doubled in August last year. 

Authorities confirmed last week that the trade-in policy remains unchanged, with subsidy funds being utilized as expected, according to Xinhua News Agency.

China's central government has allocated 162 billion yuan ($22.3 billion) in two fiscal appropriations in January and April of this year, with an additional 138 billion yuan scheduled for release in the third and fourth quarters, Xinhua reported. The government is doubling down on consumption stimulus, allocating 300 billion yuan for trade-in subsidies this year.

Robust policy support has driven a significant market rebound, with trade-in-related goods seeing rapid growth. In May, China's retail sales of consumer goods grew by 6.4 percent. Since the vehicle trade-in policy was implemented in 2024, subsidy applications exceeded 10 million by May 12, official data showed.

The government's fiscal support has effectively spurred a wave of consumption growth, green tech transformation, and resource recycling, with green and smart consumer products gaining strong traction, the commerce ministry said. Since the beginning of 2025, more than 53 percent of vehicles traded in under the program have been NEVs, the ministry said.