Old-for-New Policy Continues to Gain Momentum, Auto and Home Appliance Industries Embrace 'Renewal Dividends'

[Introduction] On August 1st, the National Development and Reform Commission held a press conference to interpret the current economic situation and economic work. An official from the Policy Research Office of the National Development and Reform Commission stated:The third batch of 69 billion yuan in ultra-long-term special government bonds for supporting the replacement of old consumer goods with new ones has been fully disbursed this year. The fourth batch of 69 billion yuan is scheduled to be disbursed in October, at which point the annual plan of disbursing 300 billion yuan will be completed.。

Data source: Longzhong Information

From the perspective of domestic automobile production,2025 1-6The output of the month is in1555.4 Ten thousand units, year-on-year increase161.3 Tens of thousands of vehicles, rising11.57% The main domestic policies, such as the replacement policy, the new energy vehicle purchase subsidy, and the exemption from purchase tax, will continue to play a strong role in supporting and driving domestic automobile demand. It is expected that in the second half of the year, with the arrival of the peak demand season, domestic automobile production is likely to continue to rise.

Source of data: Longzhong Information

From the perspective of consumption, automobile sales showed an upward trend from 2021 to 2025. Supported by the two new subsidy policies, China's automobile sales gradually increased, with a growth rate of 11.92% in 2023. Sales reached 30.05 million units, accounting for 33.8% of global sales. In 2024, sales reached 31.43 million units, an increase of 1.38 million units compared to 2023. According to the latest data, the demand in the Chinese automobile market in 2025 remains stable, coupled with a gradual recovery in exports, with consumption reaching 15.65 million units from January to June. 。

Source of data: Longzhong Information

From the perspective of the home appliance industry, the total output of the four major home appliance sectors reached 363.705 million units from January to June 2025, an increase of 9.193 million units compared to the same period last year, representing a year-on-year growth of 2.59%. Among them, washing machines and air conditioners showed significant year-on-year growth of 10.81% and 4.99%, respectively, mainly due to increased demand in the EU and UK markets. In addition, the rising demand in emerging markets such as Southeast Asia and South America has also provided strong support for domestic home appliance production.

With the support of domestic trade-in subsidies and other policies, the production of domestic automobiles and home appliances has significantly increased. As the main application fields of modified polypropylene, this provides slight support for the orders of modified polypropylene enterprises. In July, the average order days for modified polypropylene was 11.13 days, an increase of 15.94% compared to 2024. It is expected that the orders for modified polypropylene may increase in the fourth quarter.

Overall,Trade-in programs directly reduce consumers' replacement costs through subsidies, with a particularly significant impact on price-sensitive groups. In the automotive sector, the combination of new energy vehicle trade-in subsidies and purchase tax exemptions accelerates the replacement of fuel vehicles; in the home appliance sector, the demand for upgrading to energy-efficient and smart products is released, promoting inventory clearance in the industry. ExpectedIn October, with the arrival of a new round of trade-in funds and the approach of the Spring Festival, the demand for automobiles and home appliances continues to rise.