Ministry of Commerce Geng Hongzhou: Promote deep and practical pilot reform of automotive circulation consumption.

date
13/09/2025
On September 13, Geng Hongzhou, a first-level inspector of the Market Operation and Consumption Promotion Department of the Ministry of Commerce, stated at the 2025 China Automobile Industry Development International Forum that China's automobile production and sales volume has ranked first in the world for 16 consecutive years, with the number of cars in circulation and export volume both staying at the top globally, indicating a huge consumption potential. However, the number of cars per thousand people in China is only 250, which shows that there is still a large room for growth compared to developed countries and mature markets. Geng Hongzhou introduced that the next step for the Ministry of Commerce is to vigorously stimulate consumption, comprehensively expand domestic demand, and promote the high-quality development of the automobile industry. Firstly, they will focus on implementing the policy of replacing old cars with new ones, by utilizing data to improve efficiency and ensuring that subsidy funds reach consumers promptly. Secondly, they will deepen and solidify the reform pilot of automobile circulation and consumption, aiming to break restrictions on automobile consumption and promote the transformation from purchasing management to usage management through innovative methods to cultivate new growth points in automobile consumption, such as developing car races and RV camping. Thirdly, they will facilitate the reuse of the automobile recycling chain by encouraging companies to introduce internationally leading scrap car product equipment, enhancing the level of refined and green dismantling, and guiding local authorities to strengthen inter-departmental comprehensive supervision, increase daily inspections and oversight, crack down severely on illegal dismantling and scrapping of motor vehicles, and guide industry associations to play a bridging role, promoting lawful and compliant operations, enhancing industry self-discipline, and driving healthy industry development.