China unveils measures to boost auto consumption

China on Tuesday rolled out a package of new measures aimed at expanding automobile consumption across the industrial chain, with a particular focus on reforms in auto circulation and steps to boost the auto aftermarket. According to a circular jointly issued by eight departments, including the Ministry of Commerce, 40 cities nationwide have been designated as pilot areas for auto circulation reforms, each with priorities tailored to their local conditions. The cities, including Tianjin, Shenyang and Yangzhou, are tasked with addressing bottlenecks such as unreasonable restrictions in auto circulation and consumption, improving reform and innovation measures, and cultivating new consumption scenarios, business forms and models, the circular said.

Separately, another circular jointly issued by nine departments rolled out multiple measures to boost the auto aftermarket, covering areas such as the orderly regulation of vehicle modification, support for the recreational vehicle (RV) camping sector, new business models for classic cars, and the promotion of motorsports. The country will promote vehicle modification through graded and category-based management, the circular said, adding that it will support the RV camping sector by optimizing road access policies and streamlining land-use approvals for campsites.

"China's auto aftermarket holds massive potential to tap," said Wang Du, vice president of the China Automobile Dealers Association. Wang added that the new measures will help further smooth the auto industrial chain in a systematic way, thereby injecting fresh momentum into automobile consumption growth. Official data showed that China's auto sales totaled 12.207 million units in the first five months of 2026, with NEV sales reaching 5.802 million units, up 3.5 percent year on year.