Observations from the National Day Golden Week Auto Market: The trade-in policy boosts sales significantly, while "fixed-price" offers for gasoline vehicles are becoming a new trend.

This National Day holiday, fuel-powered vehicles have seen more aggressive promotional offers compared to new-energy cars, including the launch of "special-price models" and limited-time "fixed-price" deals aimed at attracting customers to dealerships and boosting sales. During this year's National Day break, numerous cities across China have actively responded to the government's "trade-in" policy for automobiles, with nearly 20 cities simultaneously hosting auto shows—factors that continue to inject momentum into the automotive market. A reporter from First Finance visited 4S dealerships in Guangzhou, Zhuhai, and other cities, discovering a noticeable increase in customer traffic. Staff members generally reported that new-car sales surged by 30% to 40% compared to the same period last year. Notably, fuel-powered vehicles have benefited from even stronger promotions than their new-energy counterparts, featuring initiatives like "special-price models" and time-limited "fixed-price" offers—all designed to draw more customers into stores and drive up overall sales volumes. "During the National Day period, our dealership rolled out over 20 'special-price' vehicles, primarily the dual-engine hybrid version of the Camry," said a manager at a GAC Toyota 4S store in Guangdong. "We offered limited-time flash-sale discounts, providing buyers with savings of up to 40,000 yuan off the recommended retail price." The manager added that 10 of these "special-price" cars had already been sold within the first three days of the holiday.
Currently, automakers are ramping up efforts to meet their annual sales targets. Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, pointed out that with the arrival of "Golden September and Silver October," automakers have entered the crucial final stretch of the fourth quarter, making the National Day Golden Week a pivotal window period. According to data from the China Passenger Car Association, the average daily number of vehicle scrappage applications has already reached 10,000 units. It is expected that as more regions roll out policies promoting vehicle replacement and upgrades in the near term, these initiatives will significantly boost consumer demand. In the traditional peak season for auto consumption during "Golden September and Silver October," the National Day holiday has always been a key focus for car dealerships. As the penetration rate of new energy vehicles surpasses 50%, the pressure on fuel-powered cars to capture market share has become increasingly urgent. During a recent visit to the automotive market, reporters observed that fuel-powered vehicles are being aggressively discounted ahead of the National Day Golden Week. For instance, "Earlier this year, the suggested retail price of the mainstream Camry Dual Engine model was above 200,000 yuan. But now, the dealership is running a 'special-price car' promotion, offering the Camry Dual Engine version at a flash-sale price of just around 180,000 yuan—drawing many customers eager to snap up the deal." A sales representative from a GAC Toyota 4S store shared that the store has set a robust National Day sales target of selling 10 vehicles per person, a goal that is well within reach.
At a Dongfeng Nissan 4S dealership in Zhuhai, a classic Sylphy model proudly displays an advertisement on its roof: "Down payment of just 46,600 yuan—license included, taxes included, and you can drive it home today!" Meanwhile, above the store's main entrance hangs another eye-catching banner reading, "Gas is more stable than electric—and even cheaper than electric! Enjoy a fixed price of 69,800 yuan to take it home!" These promotions are drawing plenty of customers into the showroom. A sales representative inside explained that the Sylphy typically starts at around 100,000 yuan, but during the National Day holiday period, the car’s base price offered by the dealership is as low as 69,800 yuan. Plus, buyers can also stack this with trade-in incentives, bringing the final, all-inclusive price down to roughly 70,000 yuan.

In fact, the "one-price" model for fuel-powered vehicles was already launched at the Chengdu Auto Show. SAIC Volkswagen's new T-Roc (configuration | inquiry) offered this "one-price" model upon its launch at the Chengdu Auto Show, sparking heated market discussion. Following closely on the heels of the "Golden September and Silver October" shopping season, over a dozen fuel-powered models, including the 2025 Passat, the 2025 Ford Mondeo, and the Buick Envision Plus, adopted limited-time "one-price" promotions to attract consumers, including the 2025 Passat, the 2025 Ford Mondeo, and the Buick Envision Plus. Industry insiders generally believe that this "one-price" model, unlike previous limited-time promotions or terminal subsidies, can more directly inform consumers of the specific model's discounts and drive new vehicle purchases. However, pricing and profit margins for fuel-powered vehicles remain challenging issues.

In contrast, domestic new energy vehicle dealerships, including those of brands like Ideal, Wenjie, and BYD, have not made significant price adjustments. Most stores offered promotions like gift packages and bonus points for new vehicle purchases during the National Day holiday, along with trade-in programs. A BYD dealer manager told reporters that compared to fuel-powered vehicles, new energy vehicles "generate traffic." The dealership sold over 50 new energy vehicles on the first day of the National Day holiday, and the dealership expects to exceed its sales target this year.

According to the latest forecast from the China Passenger Car Association, the narrow passenger car retail market is expected to sell approximately 2.1 million units in September, a year-on-year increase of 4%. The new energy vehicle retail market performed particularly well, with sales expected to reach approximately 1.1 million units, a year-on-year increase of 47.3% and a month-on-month increase of 7.3%, with a penetration rate of approximately 52.4%. Furthermore, the National Day holiday is a crucial time for local auto shows to boost consumption. During the holiday, nearly 20 cities across China held local auto shows simultaneously. From October 1st to 5th, the Suzhou International Auto Show attracted over 250,000 visitors, with over 20,000 vehicles sold and a turnover exceeding 4 billion yuan. During the same period, the 2024 Shenzhen International Auto Show attracted a total of 412,000 visitors, with 17,021 vehicles pre-ordered and sold, totaling approximately 4.33 billion yuan. The booming auto market during the National Day holiday is largely due to the support of the "trade-in" policy. On August 16th of this year, the Ministry of Commerce and seven other government departments issued the "Notice on Further Improving the Auto Trade-in Program." This notice stated that for eligible individual consumers who scrap their old vehicles and purchase new ones, subsidies will be increased from 10,000 yuan for new energy passenger vehicles and 7,000 yuan for gasoline-powered passenger vehicles to 20,000 yuan and 15,000 yuan, respectively. In September of this year, over 40 new and updated models were released or launched, leaving the auto market in urgent need of space for the influx of new models. The "trade-in" policy is accelerating the replacement of older vehicles. During our visit, numerous consumers, store sales representatives, dealership managers, and auto company insiders mentioned the positive impact of the "trade-in" policy on prices and sales. Ms. Luo, a consumer in Guangzhou, told us that she previously owned a joint venture gasoline-powered vehicle and traded it in for a BYD Haibao 06 DM-i during the National Day holiday, receiving a combined government and manufacturer subsidy totaling 12,000 yuan. Currently, several cities, including Beijing, Shanghai, and Guangzhou, have introduced new local policies to strengthen their car trade-in programs. Just before National Day, Chongqing allocated an additional 250 million yuan to further promote the auto trade-in market. Guangdong Province, on the other hand, has released the "Implementation Plan for Utilizing Ultra-Long-Term Special Government Bond Funds to Further Support the Trade-in Program for Consumer Goods." Consumers who scrap their old cars and purchase new ones can receive subsidies of up to 20,000 yuan, and replacement subsidies of up to 16,000 yuan. This is the largest subsidy ever, doubling the subsidies offered by the trade-in program in May.

Building on the national trade-in policy, some fuel-powered vehicle manufacturers are also offering additional subsidies during the National Day holiday. A reporter's store visits revealed that GAC Trumpchi is offering trade-in subsidies of up to 20,000 yuan, GAC Toyota is offering a limited-time purchase subsidy of up to 32,000 yuan, FAW Toyota is offering replacement subsidies of up to 25,000 yuan, and Beijing Hyundai is offering replacement subsidies of up to 30,000 yuan. These subsidies are designed to unleash consumer potential through replacement subsidies. Data shows that, supported by replacement subsidies, the scrapping and replacement of cars is experiencing a new era. As of September 24th, the cumulative number of approved subsidy applications on the National Auto Trade-in Platform had reached nearly 11 billion yuan, corresponding to treasury bond expenditures. As of midnight on September 25th, the National Auto Trade-in Information Platform had received over 1.13 million applications for vehicle scrapping and replacement subsidies, with over 1.68 million registered users.

Cui Dongshu, Secretary-General of the National Passenger Car Market Information Joint Conference, stated that with the evolving stage of automotive consumer goods development, demand for replacements for existing passenger vehicles has continued to rise. In recent years, my country's overall auto market has shifted from an "incremental" era to an era prioritizing both growth and existing demand. The recent national policy of guiding changes in consumer demand through the implementation of vehicle scrapping and replacement programs and trade-in programs will help accelerate the consumer market's shift from a focus on availability to one focused on quality.

Reprinted from Sina Auto

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