Workers assemble new-energy vehicles (NEVs) at a plant in Southwest China's Chongqing Municipality to fill overseas orders on September 21, 2023. NEV exports totaled 727,000 units in the first eight months of 2023, up 110 percent year-on-year, data from the China Association of Automobile Manufacturers showed. Photo: VCG

As 2023 comes to an end, more Chinese car companies and some local governments are conducting campaigns, including offering financial subsidies and coupons, for consumers to support auto sales.

The ongoing provision and implementation of suitable local policies will further release consumption potential and improve the auto market. The excellent performance of China's auto industry from booming exports to domestic consumption will contribute to the country's annual economic growth, industry insiders and experts said on Tuesday.

So far this month, more than 20 Chinese automakers have joined the price-cutting trend, including popular brands such as BYD, SAIC Volkswagen and Changan Auto. The highest discount offered is about 200,000 yuan ($28,200), according to media reports.

For instance, Leap Motor announced on December 1 that it will provide cash discounts, subsidies and other benefits for consumers who buy the C11, C01 and other models.

Experts noted that car companies have been able to make price cuts because of local automobile subsidy policies. 

Many places have launched policies to promote automobile consumption, further activating the market by issuing coupons or giving subsidies for car purchases.

Dalian, Northeast China's Liaoning Province will distribute 20 million yuan of winter consumption vouchers between November 28 and December 31, including 10 million yuan of automobile consumption vouchers, Securities Daily reported.  

On November 25, Suzhou, East China's Jiangsu Province launched a winter vehicle consumption festival, providing subsidies totaling 10,000 yuan to individual consumers who purchase new-energy cars in the city, according to the report. 

"Targeted policies ...will boost consumption in the automobile market as well as optimizing the consumption environment," Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Tuesday.

Cui noted that the issuance of consumption vouchers or subsidies will further release consumer willingness and help this year's auto sales hit new heights.

Fu Bingfeng, secretary-general of the China Association of Automobile Manufacturers (CAAM), said earlier that the 2023 market had three major features: production and sales hit record highs; new-energy vehicles (NEVs) maintained rapid growth momentum, and auto exports continued to improve.

The CAAM estimated that total vehicle sales this year will likely reach 30 million units, up 11.7 percent year-on-year. Sales of NEVs will reach 9.4 million, up 36.5 percent.

"The auto industry has been a significant driver of China's exports as well as consumption this year. With the rise of Chinese automobile brands and the continuous improvement of technology, Chinese vehicles have become more competitive in the international market, with an increasing volume of exports.

"Consumption in the domestic automobile market is also growing, especially in the new-energy segment," Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Tuesday.

The consumption recovery is expected to continue through year-end. With policies to promote consumption, such as subsidies for car purchases and travel concessions, consumer confidence will gradually be restored, and the consumer market will regain its vitality, Wang said.

The continued expansion of consumption will be a key focus of China's economic development in 2024, Wang said, and the consumption upgrading will become an important trend.

Emerging areas such as the digital economy and the green economy will also become new drivers of consumption growth.