Since the official implementation of the policy of exchanging old cars for new ones, the results have been remarkable, continuously injecting surging momentum into the automotive consumer market. The Ministry of Commerce recently released data showing that as of May 11th, the number of applications for car trade in subsidies in 2025 reached 3.225 million, including 1.035 million for scrapped cars and 2.19 million for replacement cars. Since the implementation of the car trade in policy in 2024, the cumulative number of subsidy applications has exceeded 10 million. It is reported that in 2025, the policy will provide a subsidy of 20000 yuan for consumers who scrap fuel vehicles with emission standards below National IV and switch to new energy vehicle models. If they choose to purchase fuel vehicles, they will receive a subsidy of 15000 yuan. Combined with local financial special subsidies (such as additional subsidies in Beijing, Shanghai, Guangdong and other places), the comprehensive subsidy for some new energy vehicle models can reach 30000 yuan. The combination of policies has helped consumers directly reduce their car purchase costs, igniting their enthusiasm for trade in, and at the same time, promoting the retail penetration rate of new energy vehicles to break through the 50% mark in April this year. In the current fiercely competitive automotive industry, the trade in policy is seen as the "golden key" to breaking the deadlock. Recently, reporters conducted on-site visits and found that consumers are following the policy dividends, and many car owners have taken decisive action to replace idle fuel vehicles with new ones, accelerating the adoption of new energy vehicles. The willingness of consumers to participate continues to rise, and the subsidy for old car replacement is simply a 'timely rain', greatly saving the cost of car replacement. ”At the Ledao Automotive Beijing Experience Store, a consumer who has just completed the car purchase procedures told reporters that in addition to subsidies, he mainly values the rechargeable, replaceable, and upgradable energy replenishment service system of some new energy vehicle brands, which alleviates his anxiety about energy replenishment for new energy vehicle travel. At the same time, technology configurations such as intelligent driving assistance systems and intelligent cockpits have accurately hit the consumption pain points of young people who need both economy and technology. Ledao Auto Sales introduced to reporters that taking advantage of the trade in policy, the company has increased its subsidy policies, such as giving away accessory products for car purchases, enjoying five-year zero interest financial subsidies, five-year free use of NOA navigation assistance functions, and power on subsidies. In terms of the convenience of the subsidy application process, Long Lin, the customer manager of Jihushou Special Steel Park store, introduced to reporters that there are flexible and diverse channels for consumers to apply for subsidies for different car buying scenarios. If consumers choose to dispose of their old cars, they only need to complete the application through the "Car Trade in Subsidy Application" mini program, upload necessary documents such as the vehicle scrapping certificate and identity information according to the prompts, and complete the application; If consumers plan to replace their new energy vehicles, they can submit relevant materials such as replacement contracts and new car invoices through the "Green Vehicle" mini program to quickly apply for subsidies. In addition, consumers can also submit subsidy applications through official websites designated by the government, with multiple channels running parallel to ensure that consumers can choose the most convenient application method based on their own needs and habits, and fully enjoy policy dividends. In addition to real money subsidies, some car companies have also increased their promotional efforts in the form of points. At the experience stores and 4S stores of AITO and GAC Aion, salespeople have stated that consumers who purchase cars will receive points that can be exchanged for gifts on the official store. If it is an old car owner who purchases, additional points will be given as gifts, making the discounts "visible and tangible". Recently, a car enthusiast association event initiated by new energy brands such as Aion, Tesla, Zero Run, and Ledao gathered at Shougang Park, with hundreds of new energy car owners gathered together. According to Ma Guofeng, the president of NIO Le Dao Jing Le Club, there are over 1000 members of car enthusiasts' associations in Beijing alone, with over 50% of car owners being over five years old and driving over 200000 kilometers. The demand for car replacement is showing a surge. The deep linkage between these car companies and users is becoming a new pivot to leverage market growth. Driven by policies, the concept of green travel has deeply penetrated people's hearts. According to data from the Ministry of Commerce, in 2024, the proportion of new energy vehicle replacements in the process of replacing old cars with new ones will exceed 60%, and more than 6.6 million old car models will have completed "oil to electricity" or energy-saving upgrades. The trend will become clearer in 2025, with the proportion of new energy vehicles in replacement exceeding 53%. According to data from the China Association of Automobile Manufacturers, the retail sales of new energy passenger vehicles reached 3.324 million units from January to April this year, a year-on-year increase of 35.7%. New energy vehicles are reshaping the industry landscape as "disruptors" and becoming a new star leading the transformation of automobile consumption. The second-hand car market is thriving, and cars are large durable consumer goods. In order to promote the sustainable development of trade in, relevant policies also provide strong support for the second-hand car market. As stated in the 'Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Trade in', the goal is to increase the volume of used car transactions by 45% by 2027 compared to 2023. The policy of exchanging old cars for new ones activates the second-hand car market through multidimensional innovation, with transparency and digital upgrading of the transaction process being key engines. Taking Beijing Huaxiang Market as an example, its "one-stop transfer" service allows consumers to complete the entire process of vehicle evaluation, procedures, and transfer without leaving their homes, with an efficiency improvement of over 50%. A second-hand car dealer revealed to reporters that since the beginning of this year, 4S stores have launched intensive trade in subsidy activities, attracting car owners to buy new cars while also expanding the market supply of second-hand cars. Under the policy dividend, the transaction volume of the second-hand car market has achieved a leapfrog growth. According to data from the China Association of Automobile Dealers, the transaction volume of second-hand cars in China reached 19.6142 million units in 2024, a year-on-year increase of 6.52%, and the transaction volume exceeded 1.28 trillion yuan, reflecting the continuous improvement of the scale of second-hand car transactions. With the deepening of policies, second-hand car e-commerce platforms are actively utilizing new technologies to explore the market, relying on big data and AI technology to provide consumers with vehicle lifecycle records. The popularization of digital tools such as online payment and electronic signing has made the transaction process smooth and easy for consumers to complete the transaction loop with just a click of their fingertips. The standardization and e-commerce process of the second-hand car market has further ignited consumers' enthusiasm for changing cars. Shen Hao, Sales Director of Chenyi Boutique Car Store, told Securities Daily reporters that with the abundance of new electric vehicle products, consumers' choice space has greatly increased. Many families are replacing idle fuel vehicles with smart electric vehicles, and subsidy policies are like catalysts, transforming consumers' "wait-and-see sentiment" into "action momentum". The automobile service industry has ushered in new development. The implementation of the policy of exchanging old cars for new cars has not only activated the "spring water" of the consumer market, but also revitalized the entire chain service industry surrounding automobiles. Automobile dealers are transforming from "one hit buying and selling" to "lifelong service partners", and value-added services such as automotive finance, trade in services, and maintenance systems have become the "new competition track". Nowadays, when consumers step into 4S stores, they can not only enjoy a "one-stop" financial solution, but also receive professional evaluation advice during the trade in process, and experience "butler style" attentive service during the maintenance process. Zhu Keli, Executive Director of the China Information Association, stated in an interview with reporters that the trade in policy is not only a "dual wheel drive" that drives consumption and investment, but also forces industrial upgrading, giving rise to new scenarios and demands. For example, in March of this year, under the guidance of multiple local governments, JD.com announced a comprehensive upgrade of its subsidy policy, expanding the subsidy coverage to all categories of the automotive aftermarket, including tires, engine oil, repair and modification parts, and batteries. At the same time, JD Auto Care has partnered with more than 20 automotive industry chain partners to establish the "JD Auto Care Renewal Brand Alliance", providing consumers with a guaranteed and more professional automotive consumption experience. The subsidies of "real gold and silver" have greatly promoted the consumption of the automotive aftermarket. According to the person in charge of JD Car Maintenance, tire sales have increased by over 100% driven by the old subsidy policy. At the same time, consumers' awareness of government subsidies in the automotive aftermarket continues to expand, with the number of related users searching for "car maintenance subsidies" on JD.com increasing by more than 10 times. Zhu Keli analyzed that e-commerce platforms and big data make car prices "transparent like a mirror", allowing consumers to easily compare prices. The "full cycle service" system from maintenance to rescue also allows car owners to personally feel meticulous care; The combination of government subsidies and platform discounts has led to new low prices for tires, engine oil, accessories, and other products. These changes have not only ignited consumers' enthusiasm for changing cars, but also accelerated service upgrades in the automotive industry. (New Society)