Continental Commercial Vehicle Project Settled in Jinan, Shandong Province
In response to the growing prevalence of passenger cars and commercial vehicles, Chinese authorities have taken decisive action once again. Yesterday, they emphasized the need to boost commercial vehicle sales, marking the third major policy move this year following the "Cars Go to the Countryside" initiative in March and the Ministry of Finance's increased support for old car retirement subsidies.
"The fivefold increase in subsidy funds is a huge advantage for commercial vehicle sales," said a commercial vehicle owner who recently learned about the new scrapping and renewal policies. The excitement was evident as he shared his thoughts with reporters. Analyst Shi Jijia from Pacific Securities believes this policy will benefit listed companies such as Dongfeng Motor, Foton Motor, and Jianghuai Automobile.
Industry experts suggest that the enhanced subsidy is driven by the performance of passenger and commercial vehicles in the first four months of 2025. According to data from the China Automotive Industry Association, passenger car sales hit record highs during this period, while commercial vehicle sales continued to decline. Truck production and sales reached 743,100 and 719,700 units respectively, up 17.11% and 11.99% year-on-year. However, semi-trailer tractor production and sales fell sharply by 73.51% and 69.21%. Passenger vehicle sales also declined by 38.38% and 37.12%, and non-integrated truck sales dropped by 17.71% and 18.74%.
Car analyst Jia Xinguang pointed out that previous efforts to retire old vehicles were insufficient. With approximately 26 million commercial vehicles on the road, only 300,000 to 500,000 are scrapped annually, resulting in a scrap rate of just 2%. This means there are still around 5 million highly polluting vehicles from the late 20th and early 21st centuries. Increasing the intensity of vehicle scrapping is therefore seen as a positive step for energy conservation, environmental protection, and improved transportation efficiency.
Some industry insiders believe that the additional 4 billion yuan in funding could stimulate sales of 5.6 million commercial vehicles. However, Rao Da, Secretary-General of the National Passenger Car Information Association, argues that the current biggest declines are in heavy trucks and passenger cars, which are not included in the subsidy. He doubts whether the additional funding will be fully utilized this year. "I think this extra subsidy may not even be used up this year," he said.
Cast Iron Pump Parts,Cast Iron Water Pump Parts,Cast Iron Hand Pump Parts,Cast Iron Pitcher Pump Parts
Shijiazhuang Zhongjia Slurry Pump Co.,Ltd. , https://www.zhongjiapump.com