Recently, the official account of Haikou Municipal Bureau of Commerce showed that in order to thoroughly implement the decision and deployment of Haikou's Work Plan for Promoting Consumer Goods Trade in, and actively respond to the national policy guidance of expanding domestic demand and promoting consumption upgrading, Haikou launched the "2025 Haikou Auto Replacement and Renewal Subsidy" activity. According to incomplete statistics from reporters, since the beginning of this year, Guangzhou, Shanghai and other places have successively released relevant documents to increase subsidies for car trade ins. In January of this year, the Ministry of Commerce and eight other departments issued the "Notice on Doing a Good Job in the 2025 Automobile Trade in Work", which proposed that in 2025, individual consumers who scrap gasoline passenger cars registered before June 30, 2012, diesel and other fuel passenger cars registered before June 30, 2014, or new energy passenger cars registered before December 31, 2018, and purchase new energy passenger cars or 2.0-liter and below displacement fuel passenger cars included in the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax" of the Ministry of Industry and Information Technology, will be given a one-time quota subsidy. For those who scrap the above-mentioned eligible old cars and purchase new energy passenger vehicles, a subsidy of 20000 yuan will be provided; For scrapped fuel passenger vehicles that meet the above conditions and purchase fuel passenger vehicles with a displacement of 2.0 liters or less, a subsidy of 15000 yuan will be provided. According to the relevant person in charge of the Ministry of Commerce, in 2025, the policy of exchanging old cars for new ones will expand the scope of support for car scrapping and renewal, including fuel vehicles that meet the first year of implementing the National IV emission standards in the scope of old cars that can apply for scrapping and renewal subsidies. According to preliminary estimates, there will be approximately 13 million vehicles in the first year of China IV, plus 12 million passenger cars with emissions of China III or below. The number of old cars eligible for subsidies for scrapping and renewal of automobiles exceeds 25 million, indicating enormous potential for scrapping and renewal. According to the China Automotive Strategy and Policy Research Center, it is predicted that by 2025, the replacement of scrapped cars is expected to drive an increase of 2 million to 2.5 million vehicles. The replacement update is expected to leverage an increase of 2 million to 2.5 million vehicles. Analysts from Guohai Securities Co., Ltd. told reporters that in 2024, the policy of replacing old cars with new ones will drive overall passenger car sales beyond market expectations. In 2025, the continuation of the car replacement subsidy policy is expected to further support overall car sales. According to data from the Ministry of Commerce, as of 24:00 on April 24th, the number of cars exchanged for new in China reached 2.705 million, a significant increase of 1.2 million from 1.5 million on March 24th. Compared with the retail sales of about 1.72 million private family passenger cars in March, about 70% of private car buyers have become beneficiaries of the trade in policy, and the proportion of private first-time buyers has dropped to around 31%. This change indicates that under the background of consumption upgrading, the trend of buying cars through trade in has become the mainstream trend. Under the active promotion of the national policy of exchanging old for new, car companies have responded by increasing the launch of car purchase subsidies to promote consumption. In terms of new energy vehicles, several new energy vehicle companies such as Xiaopeng Motors, Ideal Motors, and Sailis have launched varying degrees of increased subsidy activities. Among them, the official trade in service of Sailis has recently been launched, and owners of the Wenjie M9 model can enjoy a final payment reduction of 30000 yuan when exchanging vehicles, while owners of other models of Hongmeng Zhixing can enjoy a final payment reduction of 20000 yuan. In terms of fuel vehicles, SAIC Volkswagen has launched multiple "enhanced" services. For fuel powered car users, the Passat Pro is priced at 169900 yuan as the starting point for purchasing a car. After adding a 13000 yuan trade in subsidy, the actual purchase cost further drops to the 150000 yuan range, and the entire series comes standard with an intelligent cockpit and L2 level intelligent driving system. In addition, SAIC Volkswagen has launched a lifetime warranty policy for all fuel SUV models, covering core components such as powertrain and suspension system. Yuan Shuai, Deputy Secretary General of the Zhongguancun Internet of Things Industry Alliance, told reporters, "Since the beginning of this year, many regions have increased their subsidy policies for car replacement and updates, which have played a significant role in promoting the upgrading of car consumption. The subsidy policies have lowered the cost threshold for consumers to replace new cars, giving them stronger purchasing power, thereby stimulating potential demand in the car market, increasing car sales, and laying a market foundation for consumption upgrading Yuan Shuai stated that subsidy policies are often linked to encouraging the purchase of more environmentally friendly and intelligent car models, thereby guiding consumers to shift from traditional fuel vehicles to new energy vehicles or high-efficiency, highly intelligent fuel vehicles, encouraging consumers to actively choose car products with higher configurations, more advanced technology, and better environmental performance, and driving the upgrading of the car consumption structure towards the mid to high end and green intelligent direction. (New Society)